Hire Employees in Pakistan 2026 : How EOR & PEO Services Make It Possible

Pakistan offers a deep pool of skilled professionals across technology, finance, customer support and operations, making it an attractive hiring destination for global businesses. However, many companies hesitate due to the cost and complexity of setting up a local legal entity. This is where modern workforce solutions create a smarter path.
With Employer of Record (EOR) and PEO services, organizations can hire employees in Pakistan legally, quickly and compliantly—without registering a company locally. These models allow businesses to access top Pakistani talent, manage teams remotely and stay fully compliant with labor laws, payroll and statutory requirements, while focusing on growth rather than administrative and regulatory burdens.

Why Global and Local Companies Want to Hire employees in Pakistan?

 

The challenge of setting up a legal entity in Pakistan

Establishing an entity in Pakistan generally entails registering with various agencies opening domestic bank accounts handling tax enrollments and adhering to numerous labor and legal requirements. This process can be costly, lengthy and frequently avoidable if you are:

• Exploring the market
• Starting with a small remote team
• Running a temporary or project-based operation
• Unsure about your long-term headcount strategy

For many organizations, a full legal entity is an over-commitment at an early stage.

Risks of informal hiring and contractor-only models

Certain firms attempt to avoid the complexity by engaging people as contractors or compensating them unofficially. Nonetheless this may lead to risk:

• Misclassification of an employee as a contractor
• Non-compliance with Pakistan labor laws, tax regulations, EOBI, and provincial social security
• Exposure to penalties, litigation, and reputational damage

A framework that integrates compliance, governance and adaptability is essential. This is the role served by Employer of Record in Pakistan and PEO co- frameworks.

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

 

An Employer of Record (EOR) acts as your legal employer in Pakistan. While you continue to oversee the work your EOR partner handles all matters concerning employment, payroll and legal compliance.

Simple explanation of Pakistan EOR services

In practical terms:

• You, as the client organization, choose the candidate, manage daily tasks, define KPIs, and oversee performance.
• Serving as your Employer of Record in Pakistan officially hires the employee in Pakistan provides a contract manages payroll oversees benefits and guarantees compliance with all local requirements.

This enables you to function as though you possessed an organization without genuinely establishing one.

Core responsibilities of an EOR partner in Pakistan

Within the EOR framework E Square generally assumes accountability for:

• Drafting and signing locally compliant employment contracts in Pakistan
• Managing employee onboarding and verification
• Processing payroll, in PKR and distributing salary slips
• Deducting and depositing statutory contributions to the relevant authorities
• Handling EOBI (Employees’ Old-Age Benefits Institution) and Provincial Social Security registrations and contributions
• Managing income tax withholding on salaries
• Arranging medical and hospitalization coverage according to the agreed plan
• Managing offboarding, full and final settlement, and issuing experience letters

You secure a compliant worker based in Pakistan without incurring the expenses and challenges associated with establishing and managing a local branch.

What Is a PEO (Professional Employer Organization) in Pakistan?

 

While EOR is perfect if you lack an entity a PEO solution in Pakistan is better suited when you have an established Pakistani company but choose not to develop a complete HR, payroll and compliance framework internally.

When to choose a PEO co-employment model

Under the PEO model:

• You continue to be the employer in Pakistan.
• A Professional Employer Organization acts as your co-employer handling HR, payroll and compliance duties.

This proves beneficial when your team is expanding but you prefer not to handle intricate labor regulations organizational interactions or standard HR tasks on your own.

Shared HR and compliance responsibilities

Through a PEO arrangement in Pakistan, e-square can:

• Prepare and manage HR documentation and employment contracts
• Process monthly payroll and salary disbursements
• Administer EOBI and Social Security for employees
• Coordinate with medical and health insurance providers
• Manage day-to-day HR support such as leaves, letters, and attendance
• Guarantee continuous adherence, to labor laws and address inspection requirements

In summary you concentrate on operations and expansion whereas a professional manages Pakistan HR outsourcing and payroll administration.

How Should Use EOR & PEO Services in Pakistan?

 

International companies without a local entity

If you represent a company employing remote workers in Pakistan without having a registered entity there an EOR solution is perfect. You have the option to:

• Hire one or multiple employees quickly
• Test the market before committing to a full local setup
• Work with an Employer of Record in Pakistan that complies with regulations

International companies with a local entity but no HR infrastructure

If you currently possess a presence yet do not have a robust HR and compliance
function a PEO service in Pakistan enables you to:

• Outsource HR operations, payroll, and statutory obligations
•  Minimize the chance of mistakes, in labor, tax and regulatory compliance

Local companies within Pakistan

Domestic organizations may also gain from Pakistan HR outsourcing and manpower outsourcing solutions when they:

• Want to outsource HR, payroll, and benefits administration
• Need access to a pool of pre-screened outsourced staff for projects, seasonal demand, or replacements
• Choose to concentrate on business activities while an expert handles employee lifecycle and regulatory compliance

PEOs provide service delivery across all regions in Pakistan – be it your business operations in Karachi, Lahore, Islamabad, Faisalabad, Peshawar, Quetta or even, in areas.

How Employer of Record Hiring Works in Pakistan – Step by Step

 

Step 1 – Defining your hiring requirement

Start by outlining your personnel requirements, for Pakistan:

• Job title and detailed job description
• Salary range and benefits structure
• Work model (remote, hybrid, onsite)
• Expected joining timeline and any specific compliance or sectoral requirements

This enables us to create the EOR recruitment solution in Pakistan tailored for your company.

Step 2 – Talent sourcing and shortlisting

You can. Bring a pre-selected candidate or request EORs to assist with local talent recruitment, in Pakistan. In that scenario they aid in narrowing down candidates according to your role- qualifications and experience needs.

Step 3 – Job offer and local employment contract

After the chosen candidate is finalized:

• Pakistan-compliant employment agreement is Provided by e-square through our legal entity.
• Every employment condition – including salary, working hours leave entitlements and benefits – complies with your expectations and the local legislation.

Step 4 – Onboarding and statutory registrations

Throughout the onboarding process EORs oversee:

• Collection and verification of employee documents
• Registration with EOBI and Provincial Social Security where applicable
• Payroll setup for tax and contribution calculations
• Enrollment into medical and hospitalization plans when included in the package

You incorporate the employee into your systems, team environment and reporting structure as a part of your organization.

Step 5 – Monthly payroll, HR administration and compliance

Every month, EORs:

• Processes salaries in Pakistani Rupees (PKR)
• Deducts taxes and statutory contributions and deposits them to relevant authorities
• Generates salary statements and keeps payroll documentation up, to date
• Oversees continuous EOBI and Social Security payments
• Coordinates with healthcare providers to ensure smooth administration of employee medical and hospitalization benefits in Pakistan

You get billing and transparent reports while employees obtain salaries and benefits that are both compliant and punctual.

Step 6 – Performance changes, role updates or exit

You continue to be responsible, for performance and making decisions. Should there be a requirement to modify the role, salary or structure—or terminate employment—EORs:

• Advise on legally compliant termination procedures in Pakistan
• Manage notice periods, documentation, and final settlements
• Complete offboarding and issue relevant letters and records

This guarantees that both the staff member and your company are safeguarded by regulations.

Outsourced Manpower and Ready Staff Pool Across Pakistan

 

A primary operational benefit of collaborating with EORs is the availability of a workforce outsourced in Pakistan.

EORs keep -evaluated applicants available, for positions including:

• Administration and back-office support
• HR and payroll operations
• Customer support and call-center roles
• Field staff, coordinators, and project resources
• Finance and accounts
• Selected technical and IT functions, depending on engagements

This allows EORs to:

• Promptly substitute employees when an individual resigns or is unavailable
• Provide temporary or interim staff during extended leave periods
• Ramp up teams for seasonal or project-based demand

By utilizing a workforce across Pakistan your operations stay consistent and continuous.

Compliance and Labor Law Protection in Pakistan

 

Managing labor laws, EOBI, Social Security and tax

The employment landscape in Pakistan consists of tiers:

• Federal and provincial labor laws and shops & establishments regulations
• EOBI for retirement and old-age benefits
• Provincial Social Security institutions for health and workplace coverage
• Income tax regulations for salary taxation
• Periodic minimum wage updates and rules on working hours and leave

For entities within or, beyond Pakistan managing these obligations independently can be difficult. Mistakes or oversights might result in fines, debts, investigations or conflicts.

When you collaborate with e-quare as your EOR and HR outsourcing partner in Pakistan you receive:

• Policy structures that are compliant and practical on the ground
• Accurate and timely statutory contributions and filings
• Accurate employee documentation to facilitate inspections and audits
• Coordinated management of employee medical, hospitalization, and institutional benefits

Workers feel safe. Businesses are safeguarded from violations.

Are You Still Managing Your Remote Team in Pakistan?

 

A frequent question, for companies contemplating EOR is:

“If e-Square is officially listed as the employer do we forfeit control over our personnel?”

The answer is: no.

Under the EOR or PEO model:

• You oversee task distribution, project coordination and assessment of performance.
• You establish goals, key performance indicators. Expected outcomes.
• You determine salary adjustments, modifications in roles and the continuation of employment (in accordance, with regulations).

e-square acts as your partner in HR and payroll operations in Pakistan managing the administrative and organizational aspects. Consider it like this:

You are responsible, for the team’s output and strategy; we handle the documentation and regulatory adherence.

Scaling Strategy: From Employer of Record to Your Own Entity

 

For many clients, EOR in Pakistan is a strategic bridge rather than a permanent destination.

Common growth path:

1. Start quickly using Employer of Record services to hire initial team members in Pakistan.
2. Test the market, validate your business model, and build a stable operation.
3.  After achieving scale and stability determine if you should set up your local entity.

When you are ready, we can:

• Help transition employees from EOR employment to your new entity
• Keep providing assistance through a PEO co-employment framework in Pakistan, for human resources, payroll and regulatory compliance
• Slowly transfer responsibility if your goal is to develop your internal HR framework

You maintain adaptability, throughout each phase.

Start Hiring in Pakistan with e-square Without a Local Entity

 

In case you wish to:

• Hire employees in Pakistan with e-square without opening a company,
• Establish a remote workforce, in Pakistan from any location globally
• Or, as a local Pakistani organization, outsource HR, payroll, EOBI, Social Security, and medical benefits administration,

then e-square Global Partners can serve as your Employer of Record, PEO and workforce outsourcing partner, in Pakistan.

We handle the employee journey, in Pakistan – from hiring to exit – allowing you to concentrate on your main business and expansion.

Conclusion

Hiring in Pakistan no longer requires setting up a costly local entity or navigating complex labor regulations alone. With EOR and PEO services, businesses can hire employees in Pakistan quickly, compliantly, and with full confidence. These models remove administrative burdens, reduce legal risks, and provide flexibility to scale teams as business needs evolve. Whether you are testing the market, building a remote workforce, or streamlining HR operations, EOR and PEO solutions make talent access simple, secure, and strategically efficient.

FAQ’s

What is the 70 rule of hiring?

The 70% rule suggests hiring a candidate who meets about 70% of the job requirements, assuming skills can be developed through training and experience.

What is the hiring process in 7 steps?

The 7-step hiring process includes identifying the need, creating a job description, sourcing candidates, screening, interviewing, selecting, and onboarding.

How do I hire staff?

You hire staff by defining the role, attracting candidates, evaluating skills and fit, making an offer, and completing onboarding and compliance steps.

What are the 7 steps of the recruitment process?

The recruitment process involves workforce planning, job posting, candidate sourcing, screening, interviewing, selection, and final hiring.

How to hire the best candidate?

Hire the best candidate by clearly defining role requirements, using structured interviews, assessing skills objectively, and evaluating cultural fit.