What is the payroll cycle in Pakistan?

Monthly payroll is standard. Payroll is paid in PKR (Pakistani rupee).

Can I run payroll in Pakistan without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Pakistan labor law and runs local payroll, no entity required.

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Payroll in Pakistan

Payroll in Pakistan runs in PKR (Pakistani rupee). Monthly payroll is standard. No universal statutory 13th-month bonus; a mandatory profit bonus applies to eligible larger companies under the Companies Profits (Workers' Participation) Act. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Pakistan payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

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.

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.

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

Get a payroll quote for Pakistan

Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.

Get your Pakistan answers

Tell us a little about your plans in Pakistan. A real specialist reviews every request and replies personally within one business day, with the exact numbers for your hire.

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Deeper guide

Hiring guide: Pakistan →

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