Pakistan is a country in south Asia bordered by India, Afghanistan, Iran, and China. It is the world’s 5th most-populous country with the 2nd-largest Muslim population on the globe. Pakistan is the site of many ancient cultures, and has a diverse climate and geography. While it is considered to be a developing country, it has a high potential to become one of the world's largest economies in the 21st century.
Pregnant employees are entitled to 18 weeks of paid maternity leave, as long as they have made healthcare contributions for the 6 months prior to the delivery. Fathers can receive 1 month of leave for the births of their first 3 children.
Employees can take up to 24 days of sick leave, with 16 days being fully paid. The remaining 8 days are paid at a rate equal to 50% of the normal wages.
Pakistan has 17 public holidays, and employees are entitled to 14 calendar days of paid time off each year, after completing 1 year at their company. This leave must be taken in its entirety. Employees can also receive Iddat leave.
The monthly minimum wage in Pakistan is around PKR 25,000 per month, and a standard workweek is 40 hours at 8 hours per day. Payment for overtime work is mandatory, and usually paid at between 200%-300% of the regular rate.
Employment contracts can be terminated as long as there is written notice provided with a reasonable justification.
The standard notice for terminations is 1 month, and payment can be given in lieu of notice.
Employees who have been terminated for any reason other than misconduct are entitled to severance payments, usually equal to 1 month of wages for each year worked with an employer.
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.