Pakistan

Capital: Islamabad

Currency: - PKR

PKR

Pakistan Labor Law and Employment Policy Overview

Key Legislation:
- Constitution of Pakistan
- Industrial Relations Act, 1968
- Social Security Act, 1969
- Minimum Wages Act, 1972
- Payment of Wages Act, 1973
Legal Characteristics:
- Aims to protect the rights and welfare of employees
- Prescribes requirements for employment contracts, working hours, leave, social security, and termination benefits

Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
Contract Terms:
- Must include the names of the employer and employee, commencement date of employment, duration of employment (if fixed-term), job description, probation period (if applicable), assigned location, salary and payment details, working hours, holidays, sick leave, deductions from salary (fines, absences, damages, taxes), and any other applicable terms and conditions.
Language and Currency:
- Contracts must be written in Urdu or English.
- Currency is Pakistani Rupee (PKR).

Standard Working Hours:
- 9 hours per day, 48 hours per week, Monday to Saturday
Rest Breaks and Intervals:
- 1 hour rest break per day
- No continuous work for more than 6 hours
- Employees working more than 8.5 hours per day are entitled to at least two rest breaks
- Female employees cannot be employed after 7 pm

Annual Leave:
- 14 days of paid annual leave per year after 1 year of continuous service
Public Holidays:
- 11 statutory public holidays
Special Leave:
- Sick leave: Up to 90 days per year
- Maternity leave:
  - First confinement: 180 days
  - Second confinement: 120 days
  - Third confinement: 90 days
- Paternity leave: Up to 30 days per year

Notice Period:
- 1 month's notice required by both employer and employee
- No notice required for temporary workers
Severance Pay:
- Employees terminated without misconduct receive severance pay equivalent to 1 month's salary for each completed year of service or any part thereof exceeding 6 months
Protection Against Unfair Dismissal:
- Employers cannot terminate contracts arbitrarily outside of the probation period and must have valid reasons for termination

Personal Income Tax:

Salary Range (PKR) - Annual Gross Income	Tax Rate
0-600,000	0%
600,000-1,200,000	5%
1,200,000-1,800,000	10%
1,800,000-2,500,000	15%
2,500,000-3,500,000	17.5%
3,500,000-5,000,000	20%
5,000,000-7,500,000	32.5%
7,500,000 and above	35%

Insurance Policy:
- No mandatory health insurance policy
Coverage:
- Private health insurance plans offer various healthcare services

Permit Requirement:
- Foreigners require a work permit to work in Pakistan
Application Process:
- Application made by the employer to the Pakistan Immigration Department

Enforceability:
- Confidentiality and non-compete clauses are enforceable in Pakistan
Common Provisions:
- Confidentiality clauses prohibit employees from disclosing the employer's confidential information
- Non-compete clauses prohibit employees from working for competitors after leaving employment

Legal Requirements:
- No mandatory training and development requirements
Government Support:
- Government provides some training and development programs

Legal Requirements:
- Industrial Relations Act, 1968 prohibits discrimination based on religion, race, gender, or other protected characteristics
Enforcement Measures:
- Government agencies responsible for enforcing anti-discrimination laws

Legal Framework:
- No clear legal framework supporting or restricting remote work
Tax and Insurance Implications:
- Remote work may impact tax and social security obligations