Overview

We are the employer on paper. You are the boss in practice.

An Employer of Record (EOR) lets a company in Europe, Türkiye, the UK, North America or the Gulf employ a person who lives in Pakistan without registering a branch, subsidiary or liaison office. RRI signs a Pakistani-law employment contract with your hire, pays the salary into their Pakistani bank account, withholds and deposits income tax with the FBR, registers them for EOBI and social security, covers them with group medical insurance and administers leave and gratuity. Your team member reports to you from day one; the compliance, filings and statutory risk sit with us.

We have employed and paid our own Pakistani workforce since 2007. The EOR desk simply opens that back office to overseas clients, under a licensed, ISO 9001:2015-certified Pakistani company.

Scope

Everything an employer in Pakistan has to do, done for you.

How it works

Live payroll in seven working days.

Scope and quote

You send the role, location in Pakistan, gross salary and start date. We reply with a fixed monthly quote within one working day.

Service agreement

A short agreement between your company and RRI sets the fee, payment terms, notice and confidentiality. Signed electronically.

Employee onboarding

We collect the employee's CNIC, tax number and bank details, issue the Pakistani employment contract and register EOBI, social security and medical cover.

Monthly payroll

Invoice on the 20th, funds by the 25th, salary paid on the 1st. Tax and contributions deposited; payslip and report sent to you.

Ongoing HR

Leave, increments, bonuses, letters, insurance claims and, when the time comes, notice and final settlement, all handled by our desk.

Cost structure

Transparent: pass-through costs plus one fixed fee.

Your invoice is the employee's actual cost in Pakistan plus RRI's management fee. Every statutory line is shown separately, so you always see what is salary, what is government and what is ours.

LineWhat it isWho sets it
Gross salaryAgreed with the employee; includes the income tax we withhold and depositYou
Employer contributionsEOBI pension and provincial social security, calculated on statutory wage ceilingsGovernment
Gratuity provision30 days' wages per completed year, accrued monthly and paid at exitStatutory
Medical insuranceGroup health cover, premium at cost, billed annuallyInsurer
Management feeFixed per employee per month; reduced from the second employeeRRI
One-time setupContract drafting, registrations and tax enrolmentRRI

Fees are quoted net of taxes and bank charges in USD, EUR or GBP. No security deposit is required; statutory end-of-service dues are billed on the closing invoice.

Use cases

Where overseas companies use our EOR desk.

Compliance

Pakistani labour law, handled line by line.

ObligationRule in PakistanRRI handles
Income taxWithheld monthly from salary under the Income Tax Ordinance 2001 and deposited with the FBR; annual certificate to employeeYes
EOBIEmployer and employee contributions to the Employees' Old-Age Benefits InstitutionYes
Social securityProvincial employees' social security registration and employer contributionYes
LeaveAnnual leave (minimum 14 days), casual and sick leave, gazetted public holidaysYes
Gratuity30 days' wages for each completed year of service, payable at exitYes
Contract and noticeWritten appointment letter, probation, notice period or pay in lieu, final settlementYes
Medical coverGroup health insurance as an employment benefitYes
At a glance

Pakistan EOR at a glance: who does what.

Legal employerRRI, under Pakistani federal and provincial law
Day-to-day workYour managers: tasks, targets, reviews and performance
Employment contractIssued by RRI on the terms you approve
Income taxWithheld every month and deposited with FBR
EOBI pensionRegistered and paid: employer 5% and employee 1% of the minimum wage
Social securityPESSI, SESSI or the relevant provincial institution, by where the employee works
Leave, gratuity, final settlementTracked monthly and paid out by RRI under the contract and the law
Remote or office-based staffBoth; the contract states the place of work
Moving to your own company laterA planned transfer that keeps service, leave and gratuity intact
Structure

No company in Pakistan? You do not need one. Here is when you might.

An employer of record lets you employ people in Pakistan without registering a company, opening a bank account or taking out tax and social security registrations. For most overseas employers with one to fifty staff, that is the faster and cheaper route. A Pakistani entity of your own starts to make sense in a few specific situations:

Many clients start with RRI and transfer their team to their own company later. We plan that transfer so service dates, leave and gratuity carry across without a break.

Compare

EOR, payroll outsourcing, PEO, own entity or contractor?

Employer of record (RRI)RRI is the legal employer and holds the registrations. You need no Pakistani entity. Lowest misclassification risk. Best for hiring in Pakistan without your own company.
Payroll outsourcingYou remain the employer and need your own registered entity; the provider only calculates and pays. Best for companies already incorporated in Pakistan.
PEO or co-employmentDuties are shared, usually alongside your own entity, and structures vary, so read who the employer actually is. Best for established local employers wanting HR support.
Your own Pakistan entityYou hold every registration, filing and liability. Best for large, long-term, licensed or trading operations.
Independent contractorNo employment relationship; the person handles their own tax. Best for genuine short projects; risky when the person works full-time under your direction.
Federal and provincial

One country, five sets of labour rules.

Since the 18th Amendment, most labour law in Pakistan is provincial. Income tax and EOBI are federal; minimum wage, social security, leave and working conditions follow the province where the employee works. Punjab enacted a new Labour Code in 2026, which takes effect when the government notifies its start date.

Islamabad Capital TerritoryMinimum wage PKR 40,700 a month from 1 July 2026
SindhPKR 43,000 a month from 1 July 2026 · social security through SESSI
PunjabPKR 40,000 a month (1 July 2025 rate; no 2026-27 rate notified yet) · social security through PESSI
Khyber PakhtunkhwaPKR 40,000 notified; PKR 45,000 announced for 2026-27 · provincial ESSI
BalochistanPKR 37,000 a month, last notified rate · provincial ESSI

EOBI and provincial social security are calculated on the applicable minimum wage, not on actual salary, so they stay modest. In Punjab that is PKR 2,000 employer and PKR 400 employee EOBI, plus PKR 2,400 PESSI, per employee per month. Rates shown are as at November 2026; we re-check every notification before payroll, because late notifications are usually backdated to 1 July.

Income tax

Salary tax for tax year 2027 (July 2026 to June 2027).

Up to PKR 600,000 a yearNil
PKR 600,001 to 1,200,0001% of the amount over 600,000
PKR 1,200,001 to 2,200,000PKR 6,000 + 11% of the amount over 1,200,000
PKR 2,200,001 to 3,200,000PKR 116,000 + 20% of the amount over 2,200,000
PKR 3,200,001 to 4,100,000PKR 316,000 + 25% of the amount over 3,200,000
PKR 4,100,001 to 5,600,000PKR 541,000 + 29% of the amount over 4,100,000
PKR 5,600,001 to 7,000,000PKR 976,000 + 32% of the amount over 5,600,000
Above PKR 7,000,000PKR 1,424,000 + 35% of the amount over 7,000,000

Monthly examples: a salary of PKR 100,000 attracts about PKR 500 tax a month, PKR 150,000 about PKR 6,000, PKR 200,000 about PKR 13,000 and PKR 300,000 about PKR 34,667. Tax is withheld from the employee's pay, so it is not an extra cost to you. A bonus raises the monthly withholding for the rest of the tax year.

Working time and leave

Hours, overtime, leave and public holidays.

Ending employment

Probation, notice, gratuity and final settlement.

RRI runs every step of an exit and gives you a written recommendation before any termination.

Choosing a provider

Eight questions to ask any Pakistan EOR before you sign.

Every RRI proposal answers all eight in writing. Figures on this page were checked in November 2026; minimum wages and tax rates usually change from 1 July, and we confirm current rates in every quote.

FAQs

Employer of Record in Pakistan: questions we are asked.

What is an Employer of Record (EOR) in Pakistan?

An Employer of Record is a licensed Pakistani company that becomes the legal employer of a person working for you in Pakistan. RRI signs the employment contract, runs payroll, deducts and deposits income tax, registers the employee for EOBI and social security, and administers leave and gratuity. You direct the work; we carry the employment.

Who uses RRI's EOR service?

Companies in Europe, Türkiye, the UK, North America and the Gulf that want to employ someone living in Pakistan without registering a branch, subsidiary or liaison office. Typical cases: a remote manager or specialist, a small back-office team, a sales representative for the Pakistani market, or a candidate you have already selected for overseas deployment whom you want on payroll while the work permit is processed.

How long does onboarding take?

Five to seven working days from a signed service agreement to an executed Pakistani employment contract, tax registration and active medical cover. The first payroll runs in the first full calendar month.

How is the monthly invoice structured?

One invoice per month in USD, EUR or GBP: the employee's gross salary (we withhold and deposit the income tax), the employer's EOBI and social security contributions, a monthly gratuity provision, the medical insurance premium (billed annually at cost) and RRI's fixed management fee per employee. Nothing else is added.

Which statutory benefits apply to an employee in Pakistan?

Income tax withholding under the Income Tax Ordinance 2001; EOBI (pension) and provincial social security registration with employer contributions; a minimum of 14 days' annual leave plus casual and sick leave and gazetted public holidays; gratuity of 30 days' wages for every completed year of service; written appointment letter and notice period. RRI manages every item and reports monthly.

Can the employee be paid in a foreign currency?

The employee is paid in Pakistani rupees to a Pakistani bank account, as required for a locally employed person. You fund the payroll in USD, EUR or GBP and we convert at the bank's prevailing rate on the day of receipt, shown on the invoice.

Who owns the work product and confidential information?

You do. The Pakistani employment contract includes intellectual-property assignment, confidentiality and data-protection clauses in your favour, and we sign a service agreement with you that mirrors them. We can incorporate your own policies and code of conduct.

How does termination work?

Pakistani law requires a notice period (normally one month) or payment in lieu, settlement of accrued leave and gratuity, and a final tax certificate. You give RRI 60 days' notice under the service agreement; we handle the notice, documentation and final settlement, and bill the statutory dues on the closing invoice. No security deposit is required.

Is RRI licensed to act as an employer of record?

Renaissance Recruitment Inc. is a Pakistani firm established in 2007, licensed by the Bureau of Emigration & Overseas Employment as an Overseas Employment Promoter and certified to ISO 9001:2015. Employing staff in Pakistan on behalf of an overseas client is a domestic employment and payroll service governed by Pakistani labour and tax law, which we have run for our own workforce for almost two decades.

Can you also recruit the person for us?

Yes. If you do not yet have a candidate, our recruitment desk sources, screens and shortlists within seven working days, and the selected hire goes straight onto the EOR payroll. If you later move the employee abroad, the same team manages the overseas deployment.

Do I need a company in Pakistan to employ staff there?

No. Through an employer of record such as RRI, your staff are employed by RRI under Pakistani law, and your company needs no Pakistani entity, bank account or tax registration.

What is the minimum wage in Pakistan in 2026?

For unskilled adult workers it is PKR 40,700 a month in Islamabad and PKR 43,000 in Sindh from 1 July 2026, PKR 40,000 in Punjab (no 2026-27 rate notified yet), PKR 40,000 notified in Khyber Pakhtunkhwa with PKR 45,000 announced, and PKR 37,000 in Balochistan.

How much does EOBI cost per employee?

EOBI is 5% of the applicable minimum wage from the employer and 1% from the employee. In Punjab that is PKR 2,000 and PKR 400 a month, whatever the actual salary.

How is salary tax calculated in Pakistan?

On annual taxable salary using the tax year 2027 slabs: nil up to PKR 600,000, then rising in eight bands to 35% above PKR 7 million. The employer withholds it monthly and deposits it with FBR.

What notice is needed to end employment in Pakistan?

For confirmed employees, one month's written notice or one month's pay in lieu, with a documented reason. Dismissal for misconduct needs a show-cause notice and an inquiry.

How is gratuity calculated?

Where no provident fund exists, gratuity is 30 days' wages for each completed year of service, including any part-year over six months.

What is the difference between EOR and payroll outsourcing?

With payroll outsourcing you remain the employer and need your own Pakistani entity. With an EOR, RRI is the legal employer and you need no entity.

Can our employees move from RRI to our own Pakistan company later?

Yes. We plan the transfer with you so service dates, leave balances and gratuity carry across without a break.

Recruitment services · Employer desk · Request an EOR quote

By country

Employer of Record guides for your market.

Tax treatment, time zones and typical roles differ by where your company sits. Pick your country:

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بالعربية: السعودية · الإمارات · قطر

Guides: Contractor or employee in Pakistan? · What it costs to employ someone in Pakistan in 2026 · Minimum wage 2026-27 by province · Gratuity in Pakistan explained · دليل قانون العمل لأصحاب العمل في الخليج

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