Payroll in Pakistan runs in PKR on a monthly payroll is standard. cycle, with statutory employer contributions and no universal statutory 13th-month bonus; a mandatory profit bonus applies to eligible larger companies under the companies profits (workers' participation) act.. Gracemark operates it end-to-end, humans, not tickets.
Currency
PKR, Pakistani rupee
Payroll cycle
Monthly payroll is standard.
Working week
Standard working week is 48 hours (9 hours/day, 6 days/week) or 45 hours in some sectors, with overtime paid at double the normal rate under the Factories Act framework.
Minimum wage
Minimum wages are set at the provincial level and revised periodically; for example, Punjab and other provinces raised minimum wages effective July 2024/2025 under provincial notifications [2](https://vialtopartners.com/regional-alerts/pakistan-social-security-update-minimum-wages-eobi-and-social-security).
13th-month
No universal statutory 13th-month bonus; a mandatory profit bonus applies to eligible larger companies under the Companies Profits (Workers' Participation) Act.
Employer cost
Employers contribute to the Employees' Old-Age Benefits Institution (EOBI) and provincial social security institutions; combined statutory employer contributions commonly total single-digit percentages of wages, revised periodically alongside minimum wage updates [1](https://mercans.com/resources/statutory-alerts/pakistan-new-minimum-wage-and-amended-eobi-contributions-1-july-2024/).
Probation
Probation is commonly up to 3 months, extendable in some cases per provincial law.
Notice period
Notice periods and severance depend on provincial labour law and grounds for termination, typically requiring one month's notice or pay in lieu for permanent employees.
Two ways to run payroll in Pakistan
Own-entity payroll
For long-term presence in Pakistan. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Southern Asia time.
EOR-run payroll
No entity in Pakistan? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Pakistan
Employment model: EOR vs. contractor vs. local entity for Pakistan
Mandatory benefits, social contributions and any 13th-month obligation
Termination rules, statutory notice and severance exposure
Contractor misclassification risk and how local law defines employment
Currency (PKR), payroll cycle and English-language contract requirements
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