5% - Pension
1% - Pension
0% - PKR 0 -400,000
PKR 1,000 - PKR 400,000 - 800,000
PKR 2,000 - PKR 800,000 - 1,200,000
5% of the amount exceeding PKR 1,200,000 - PKR 1,200,000 - 2,500,000
PKR 65,000 + 15% of the amount exceeding PKR 2,500,000 - PKR 2,500,000 - 4,000,000
PKR 290,000 + 20% of the amount exceeding PKR 4,000,000 - 4,000,000 - 8,000,000
PKR 1,090,000 + 25% of the amount exceeding PKR 8,000,000 - PKR 8,000,000
Minimum wage is 15,000 Pakistani Rupees per month. 16,200 in the province of Sindh.
Paid Time Off
Employees in Pakistan are entitled to 14 days of paid leave. They gain this right after they have completed 12 months of service.
Paid sick leave is given to employees who have been certified by a Doctor. When the employees are unwell due to regular diseases, they can receive sickness benefits for a period of 121 days in one year.
Female employees are eligible to take 3 months of paid maternity leave. The six-week post-natal leave is obligatory. In order to receive maternity leave, the employee should be working for the same employer for at least 4 months before she gives birth. No employer is permitted to terminate the female employee while she is on maternity leave.
Paternity leave is given to male employees whose wives have just given birth. New fathers can take 7 days of paternity leave but only twice during their entire employment.
Normal working hours are a maximum of 9 hours a day and 48 hours a week. Anything over this is considered overtime.
Overtime pay in Pakistan is double the rate of employees’ regular pay. During holidays employees receive triple the pay rate.
Contribution rates are: • Employer – 5% • Employee – 1%
Social insurances cover old age, disability and survivor benefits, sickness, maternity and work-related injury.
Wages can be paid on daily, weekly, bimonthly, or monthly basis. The wage period cannot exceed one month.
A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.
Both employee and employer should provide a months’ time notice. Advanced notice is not required for temporary workers. If advance notice is not provided, a monthly salary in its lieu shall be provided.
When employees are discharged from work, they are given severance pay. The pay amounts to 30 days’ wages for each completed year of service. Employees do not receive severance pay if they are dismissed for misconduct.