Professional Employer Organization (PEO) in Pakistan

What is a PEO?

PEO stands for professional employer organization –– a company that exists purely to help other organizations hire staff around the world. A PEO is a provider that can take care of your HR duties when it comes to managing global staff. They’ll handle payroll, source and distribute adequate benefits packages, and ensure that your company stays on top of all the local labor regulations.

If you want to hire a new employee or contractor in Pakistan, but can’t handle the logistics on your own, that’s where a PEO comes in to help. PEOs will take on all the time-consuming duties, leaving you with your hands free to focus on growing your organization. No more getting bogged down in paperwork and international tax law!

By partnering with a PEO, you can grow your organization by hiring the perfect candidates without having to worry about where they’re based. You can build a global team of remote employees around the world, including Pakistan.

Sounds like a PEO would be right for your business? Drop us a line, and a friendly team member at Skuad will be able to answer all your queries.

What are the benefits of using PEO services in Pakistan?

As you’ll soon see, working with a PEO in Pakistan is a valuable asset for any ambitious business. It can open a lot of doors and allow you to grow… with way fewer headaches. Here’s how.

Hire from the best of the Pakistani talent pool — and beyond

Imagine you’re advertising for a new team member. You find the perfect candidate who ticks all the boxes and would be a perfect fit for the organization… but they’re based in Pakistan and you’re, well, not.

Once upon a time, it was near impossible to hire staff outside your country –– or even outside your city! A PEO does away with geographical borders, allowing you to hire the best of the best no matter where they’re located. 

Pakistan is the world’s fifth most-populous country, with a growing economy that many multinational corporations are beginning to tap into. Using a PEO in Pakistan, businesses can take advantage of the local talent pool and hire the best candidates. 

Become a globally competitive employer

You can’t have a company without employees. And they deserve to be rewarded fairly. As a global employer, it can be tricky to keep track of award rates and typical benefits packages around the world.

But when you work with a PEO, they’ll take care of all that. Your PEO in Pakistan will know precisely what to offer to attract the best possible talent. 

Save on unnecessary costs

Say you want to hire in Pakistan but don’t want to partner with a PEO. Not only would you have to hire in-house HR personnel to manage your global workforce, but you’d also need to employ someone with knowledge of the local Pakistani labor laws to administer payroll and ensure you’re complying with local laws. 

That’s going to add up pretty quickly!

Gain in-depth insights into new global markets

Because of the economic growth that Pakistan has been experiencing over the last decade, many global corporations have been establishing branches there. If you’re looking for a global market to expand into, Pakistan could be a good option. And having staff members who already live in the country is a valuable asset for gaining in-depth insights.

Plus, you’ll also then be well-positioned to then move into other regions in the Asia market. 

Avoid setting up your own legal entity in Pakistan

If a company chose not to partner with a PEO, but still wanted to hire employees in Pakistan, they’d need to set up a legal entity in the country. Sounds simple… but it’s actually quite the opposite.

It can take months of hard work, a team of lawyers, plenty of fees, plus the cost of flights back and forth to iron out any issues. It’d only really be a cost-effective option if you were planning to set up a whole team of workers based in Pakistan.

But using a PEO bypasses the need to establish your own legal entity. Many PEOs will already have a legal entity already established in Pakistan, which you can use for your own business. On paper, your employees work for the PEO, but in practice, you assign their job roles and daily duties at your company. 

Become culturally aware

One of the best things about working at a global company is getting outside your bubble; forging relationships with people that have totally different worldviews. That’s excellent for innovation.

At the same time, it’s essential to understand the impact of cultural differences when doing business overseas. As your partner, your PEO will be on hand to keep you informed on the various cultural practices as an employer in Pakistan.

Did you know that, in a Muslim country like Pakistan, Fridays are considered the day of prayer? Some companies deliberately avoid meetings on Fridays, while others take it as a half-day each week.

Get in touch with Skuad today to find out exactly what’s expected of you when doing business in Pakistan.

Ensure that your business complies with statutory requirements in Pakistan

Every country in the world has its own labor laws and employment requirements. You might have your head around the laws where you live, but as soon as you venture into any other country, it’s a totally different ball game.

If you don’t comply with these laws, your business could face hefty fines or even business bans.

Here are some things to know about hiring in Pakistan:

Payroll

• Employees are paid fortnightly or monthly in the local currency, the Pakistani rupee (PKR).
• The minimum wage is 17,500 PKR per week, which is about USD $90.
• Bonuses or 13th-month payments are not legally required.  
• The general working week is 48 hours, 9 hours a day.  

Pakistan tax rates

• Tax brackets vary based on salary, starting at 5% and then moving to a fixed rate plus an excess. It gets pretty intricate!
• Employers must contribute an extra 5% on top of salary for the employee’s pension.

Leave

• All employees get 14 calendar days of fully paid annual leave, but it must be taken all at once. 
• Pakistan also has 17 public holidays recognized by the government.
• Employees are entitled to 24 days of compensated sick leave, 16 days with full pay, and eight days at 50%.
• Female employees are entitled to three months of paid maternity leave, and fathers are eligible for one month of paid leave.
• Upon termination, employees receive severance pay amounting to 30 days’ wages for each year of completed service.

Learn more about how Skuad’s PEO services in Pakistan can help your business to grow by booking a demo today.

What does it cost to build a team in Pakistan?

Setting up a business in Pakistan

The costs involved with foreign company registration in Pakistan aren’t that high on paper. The fee to set up your own legal entity only equals about US $20, plus a few other small payments for name and address registration. 

Sounds easy, right? But don’t forget, you’ll also need to hire legal consultants to ensure you’re doing everything by the book. Then you’ll need to cover the man-hours it’ll take to onboard and file the correct paperwork when your new employees start.

Plus then there’s the cost of banking, the office space you’re registering with, and so on, so those on-paper costs will soon be drowned out. Or, you could partner with a PEO. 

PEO services in Pakistan

Pricing for PEO services varies between providers and what they offer. With Skuad, you can get started for free and cancel at any time.

Our costs start at just $19 per month, which allows you to onboard and pay international employees without the need to register your company in Pakistan.

We also offer Employer of Record services, where we cover everything: HR duties, onboarding, payroll, benefits packages, and making sure you’re complying with local Pakistani laws. This starts at $199 per month –– a very reasonable cost of doing business compared to the alternative!

Want to book in for a demo?

If you’re ready to start onboarding and paying employees in Pakistan, book in for a demo of Skuad’s global PEO solution right away.