+
Years of Experience
With a wealth of experience managing payroll, our expertise speaks volumes.
+
Global Clients
Running payroll isn't just a service, our clients' success is our priority.
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Payrolls / Month
Processed accurately and on time every month — 40,000+ delivered since inception.
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Recruitment/Month
Since 2006
Est. 2006
Formerly esquare.com.pk
20 years of trusted HR services in Pakistan and beyond.
Trusted & Compliant With
| EOR Requirement | How It Works |
|---|---|
| Local employment structure | e-square provides the agreed local employment structure for your Pakistan workforce. |
| Employment contracts | Employment documentation is prepared according to agreed terms and applicable requirements. |
| Payroll | Salary processing, applicable deductions and payroll administration are managed within the agreed scope. |
| Tax administration | Applicable employee tax withholding and payroll administration are handled within the agreed scope. |
| EOBI | Applicable EOBI registration, contributions and administration can be supported. |
| Provincial social security | Applicable provincial social security requirements can be administered according to the employee's jurisdiction. |
| Employee management | Your company continues to manage the employee's day-to-day responsibilities, objectives and performance. |
| Employee lifecycle | Support can extend from onboarding through payroll, employee changes, benefits, leave and offboarding. |
| Remote employees | EOR can support employment administration for employees working remotely in Pakistan. |
| Multiple provinces | Employment administration can be coordinated according to applicable federal and provincial requirements. |
An Employer of Record (EOR) in Pakistan is a local legal employer that hires and employs workers on behalf of another company. The EOR manages employment contracts, payroll, applicable tax administration, statutory requirements and employee administration, while the client continues to manage the employee's daily work, responsibilities and performance.
With e-square as your EOR partner, your company can build a workforce in Pakistan without immediately establishing its own local employment infrastructure.
An EOR manages the employment administration that sits between the legal employer and the employee, while the client retains operational control. Depending on the agreed scope, e-square can support:
Note: The exact services should be defined in the EOR agreement because requirements can vary according to the employee, location, employment arrangement and services selected.
Under the EOR model, e-square becomes the legal employer and manages the agreed employment administration, while your company directs the employee's day-to-day work. You fund the employment costs plus an agreed service fee, and the employee works for your business.
Your company remains focused on managing the employee's work and business objectives, while e-square manages the agreed employment administration.
Yes. An international company can use an Employer of Record arrangement to employ workers in Pakistan without immediately establishing and administering its own local employment infrastructure. Under the EOR model, the EOR provides the agreed employment structure and manages employment administration, while the client company manages the employee's day-to-day work.
This can be useful for companies that want to enter the Pakistan market, build a remote team, hire specialist talent or test their workforce requirements before deciding whether a permanent local operation is appropriate.
The specific employment, tax, social-security and regulatory requirements should be assessed according to the employee's location, employment arrangement and applicable laws.
Instead of your company establishing and administering its own local employment operation immediately, the EOR provides the employment structure for the worker. The typical relationship works as follows:
This is the key distinction between employment administration and operational management.
An EOR is not the right long-term structure for every company. Establishing your own Pakistan entity may be worth assessing in situations such as:
Where a company plans a sizeable, permanent headcount in Pakistan over several years, the cost and administration of its own entity may compare differently with an EOR.
An EOR provides employment, not a local trading presence. Companies that intend to invoice or contract with customers in Pakistan may need their own registered entity.
Some business activities require a locally registered and licensed entity. An EOR arrangement does not replace sector-specific registrations or licences.
Leasing offices, holding assets or appointing local directors and management in the company's own name generally requires its own entity.
Some organisations prefer to hold employment contracts, payroll and HR policies directly once their Pakistan operation is established.
Companies often start with an EOR and move employees to their own entity later. Employment terms, accrued benefits and service continuity should be planned for that transfer.
Entity requirements depend on the business activity and applicable law. Companies should obtain appropriate legal and tax advice before deciding on a structure.
An EOR can be useful when a company wants to employ people in Pakistan but does not yet have its own local employment infrastructure.
If your company wants to employ people in Pakistan without immediately establishing its own local employment operation, an EOR can provide the employment structure and administration required for the workforce.
An EOR can allow a company to build an initial team while it evaluates market opportunities, workforce requirements and its longer-term plans.
Companies can use an EOR to employ remote workers in Pakistan while continuing to manage their employees' daily responsibilities and business objectives.
Companies may use EOR services when building teams in areas such as technology, finance, customer support, engineering, sales and other professional functions.
An EOR may provide an employment solution while a company evaluates whether establishing its own long-term local operation is appropriate.
Where a worker's actual relationship resembles employment rather than a genuine independent contractor relationship, the company should review the appropriate employment structure. An EOR may provide an employment solution where appropriate.
Companies employing workers in different parts of Pakistan may need to consider applicable federal and provincial requirements. An EOR with local payroll and employment-administration capabilities can help coordinate these requirements.
An Employer of Record (EOR) provides the local employment structure and manages agreed employment administration for your employees in Pakistan. Your company selects and manages the employee's day-to-day work, while the EOR manages employment documentation, payroll and applicable statutory requirements.
The process typically follows these steps:
You provide the employee's:
The EOR reviews the proposed terms against the applicable employment and payroll requirements.
Your company identifies the candidate it wants to employ.
If you need recruitment support, e-square can also support candidate sourcing and recruitment through its Pakistan HR services.
e-square prepares the employment documentation based on the agreed employment terms and applicable requirements. The contract can cover:
The employee reviews and signs the employment documentation.
Once the employment documentation is completed, e-square coordinates the required onboarding and employment administration. Depending on the employee and applicable requirements, this can include:
e-square manages the agreed payroll process, including:
Throughout employment, e-square can support agreed administrative requirements such as:
When employment ends, e-square manages the agreed offboarding process, including applicable:
An EOR manages the employment administration that sits between the legal employer and the employee, while the client retains operational control. Depending on the agreed scope, e-square can support:
This allows your internal team to focus on managing the employee's work while e-square manages the employment administration.
EOR, PEO and payroll outsourcing are different employment and HR service models. The right structure depends on whether your company already has a local employment presence in Pakistan.
| Factor | EOR | PEO | Payroll Outsourcing | Own Pakistan Entity | Independent Contractor |
|---|---|---|---|---|---|
| Legal employer | EOR, under agreed arrangement | Depends on structure | Client | Client entity | Contractor |
| Local entity required by client | Not necessarily | Depends on structure | Usually yes | Yes | No |
| Employment contracts | EOR | Shared/structure dependent | Client or existing employer | Client | Contractor |
| Payroll | EOR | Usually managed/shared | Payroll provider | Client | Contractor |
| Tax administration | EOR within scope | Shared/structure dependent | Payroll provider/client | Client | Contractor |
| EOBI | EOR within scope | Depends on arrangement | Provider/client | Client | Contractor |
| Social security | EOR within scope | Depends on arrangement | Provider/client | Client | Contractor |
| Day-to-day employee management | Client | Client | Client | Client | Client |
| Best suited for | International hiring without own entity | Businesses using a PEO structure | Existing employers | Long-term local operations | Independent service |
If you do not have your own employment infrastructure in Pakistan and want to hire employees locally, an EOR provides a legal employment structure without requiring you to immediately establish your own entity.
If your company already has a local presence and wants shared HR or employment administration, a PEO arrangement may be appropriate depending on the structure.
If you already employ your workforce in Pakistan and mainly need help processing payroll and statutory administration, payroll outsourcing may be the more relevant service.
Need to hire employees without establishing your own local employment structure?
e-square's EOR solution can manage the employment administration while you manage your workforce.
e-square provides end-to-end EOR support covering the main stages of the employee lifecycle. Our services can be structured around your workforce requirements, helping you manage employment administration while your team remains focused on business operations.
e-square manages key employment administration from onboarding and payroll through employee changes and offboarding — including candidate Background Check Services prior to onboarding. This reduces the administrative workload associated with managing employees in Pakistan.
Every workforce is different. Our EOR services can be structured according to employee headcount, locations, employment requirements, payroll needs, benefits and other agreed services.
Employment administration in Pakistan can involve federal and provincial requirements. e-square supports employment contracts, payroll, tax administration, EOBI, applicable provincial social security and other employment-related obligations within the agreed scope.
If you also need help finding employees, e-square can connect our dedicated Recruitment Services in Pakistan with EOR employment administration. This creates a more streamlined path from candidate selection to compliant employment.
Outsourcing employment administration allows your management team to spend less time coordinating payroll, employee documentation and routine HR administration.
Employment requirements can change over time. Our HR and payroll processes are designed to support ongoing compliance administration and help identify employment-related requirements that may affect your workforce.
A consistent employment experience matters after hiring. e-square supports payroll, benefits, leave administration, employee records and other HR processes throughout the employee lifecycle, backed by our broader HR Outsourcing Services.
An EOR can provide an employment pathway for companies entering Pakistan before establishing their own local infrastructure. This can help businesses start building their workforce while they assess their longer-term operational requirements.
e-square uses structured HR and payroll processes to manage employee information, payroll data and reporting, helping maintain consistent employment administration.
Foreign nationals seeking authorization to work in Pakistan may need to meet applicable immigration and work authorization requirements before or during employment.
As part of our EOR services in Pakistan, e-square can assist with preparing supporting documentation, coordinating the required process and helping employers manage related administrative requirements.
Our visa and work permit support may include:
By combining EOR, payroll, HR administration and visa support, e-square provides businesses with a more streamlined approach to managing their Pakistan workforce.
Note: Immigration requirements can vary according to nationality, employment circumstances and applicable government rules. Final approval remains with the relevant authorities.
An EOR can reduce the administrative work involved in employing workers in Pakistan while allowing your company to remain focused on its business operations and employee management.
An EOR can provide an employment structure for companies that want to hire in Pakistan without immediately establishing their own local employment infrastructure.
Companies can begin the employment process without first building their own HR, payroll and statutory administration infrastructure.
The EOR can manage agreed payroll activities, including salary processing, applicable deductions, payslips and statutory contributions.
A local EOR can help coordinate employment administration across applicable Pakistani federal and provincial requirements.
Companies can use an EOR structure when building remote teams in Pakistan.
Where a workforce spans Sindh, Punjab, Khyber Pakhtunkhwa or Balochistan, the employment administration may need to account for different provincial requirements. e-square's Pakistan payroll services cover EOBI, SESSI, PESSI and FBR income-tax compliance.
Instead of managing employment administration through multiple local processes, companies can work with one EOR partner for the agreed scope.
An EOR can support companies as they add employees, change compensation, provide benefits or eventually transition employees to their own Pakistan entity.
The cost of an Employer of Record service in Pakistan depends on the workforce and the scope of services required.
There is no single EOR price that applies to every business because total employment cost can vary based on factors such as:
A typical EOR cost structure may therefore include:
Employee Compensation + Employer Statutory Costs + Benefits + EOR Service Fee + Optional Services
For an accurate estimate, businesses should assess the complete employment cost rather than comparing EOR providers only on their monthly service fee.
Employment law in Pakistan is governed through a combination of federal requirements and provincial labour legislation.
Pakistan does not have one single set of employment rules covering every aspect of employment nationwide.
Labour legislation is substantially administered at the provincial level following the 18th Constitutional Amendment. This is why an employee working in Sindh may be subject to different labour requirements from an employee working in Punjab, Khyber Pakhtunkhwa or Balochistan.
What this means for employers
| Area | Federal / National | Provincial |
|---|---|---|
| Income tax | FBR | — |
| EOBI | Federal | — |
| Minimum wage | Depends on applicable jurisdiction | ✓ |
| Working conditions | Federal/provincial framework | ✓ |
| Labour legislation | Some federal framework | ✓ |
| Social security | — | ✓ |
| Leave requirements | Depends on applicable law | ✓ |
| Labour registrations | Depends on establishment | ✓ |
| Employment disputes | Applicable legal framework | ✓ |
For employees working in Sindh, employers should consider the applicable Sindh labour laws, minimum-wage notifications, social-security requirements and other provincial employment obligations.
The Sindh Minimum Wages Board currently lists 2026 wage notifications, and the Sindh government states that the minimum wage for unskilled workers was fixed at PKR 43,000 per month effective July 1, 2026.
An EOR arrangement may involve:
For employees in Karachi and elsewhere in Sindh, the applicable provincial requirements should be checked against the employee's role, establishment and current notifications.
Punjab has its own labour framework and minimum-wage requirements.
The Punjab Labour Code 2026 was enacted in February 2026, although its commencement depends on the government notification specified by the legislation.
The previously notified Punjab minimum wage was PKR 40,000 per month for 26 working days, and current compliance should be checked against the latest Punjab government notification before payroll is processed.
Depending on the employee and establishment, an EOR may coordinate:
Khyber Pakhtunkhwa has its own labour administration and employment requirements.
The KP Labour Department states that its responsibilities include minimum wages, workers' rights, health and safety, compensation and implementation of labour laws.
For 2026-27, the KP government announced an increase in the minimum wage from PKR 40,000 to PKR 45,000 per month.
For employees working in KP, applicable requirements may include:
Balochistan maintains its own labour and manpower framework, including provincial labour rules and employment requirements. The Government of Balochistan publishes labour and manpower rules through its official portal.
For employees in Balochistan, employers should verify the latest provincial minimum-wage notification and applicable labour requirements before determining payroll or employment terms.
An EOR may support:
Yes. Under an EOR arrangement, the EOR generally provides the employment structure and employment documentation for the employee, subject to the agreed service scope and applicable law.
Key contract areas may include:
The applicable requirements can vary depending on the employee's location, industry, role and employment circumstances.
Working hours and overtime requirements can depend on the applicable labour legislation, employee category and province.
An EOR provider must therefore consider the employment location and applicable rules when setting up payroll and employment administration.
Overtime should be administered according to the applicable employment legislation and the employee's classification, rather than applying one universal overtime formula to every employee in Pakistan.
e-square can support:
Rather than applying one national rule to every employee, e-square reviews the applicable employment framework for the workforce being managed.
Minimum wage requirements in Pakistan can vary by jurisdiction and worker category. Provincial governments issue and update minimum-wage notifications and related requirements.
For example, Sindh publishes official minimum-wage notifications through its labour and social-security framework.
e-square supports employers with:
Minimum-wage rates should be reviewed against the latest applicable provincial or federal notification rather than using one fixed figure across the entire Pakistan EOR page.
Employee payroll in Pakistan may involve income-tax withholding and reporting obligations based on the employee's compensation and applicable tax rules.
The Federal Board of Revenue (FBR) publishes official withholding-tax rate cards. Its current resource page provides the Tax Year 2027 rate card updated through the Finance Act 2026, alongside previous-year rate cards.
e-square supports the payroll administration process by helping manage:
Tax treatment depends on the employee's compensation and applicable tax-year requirements. e-square can administer the payroll process within the agreed service scope.
Tax treatment can depend on taxable income, allowances and applicable rules, so one employee's tax calculation should not be treated as a universal example.
The Employees' Old-Age Benefits Institution (EOBI) is a federal social-insurance institution established under the Employees' Old-Age Benefits Act, 1976. Its benefits include old-age pension, survivor's pension, invalidity pension and old-age grant.
EOBI administration can involve establishment registration, employee registration and contribution management.
e-square can support applicable EOBI administration through:
EOBI requirements should be assessed according to the employee's eligibility and the applicable statutory framework.
EOBI provides an online payment process for employer contributions through its facilitation system.
EOR in Pakistan can help international companies manage EOBI administration as part of their broader employment and payroll compliance process, where applicable.
Pakistan's social-security framework also operates through provincial institutions. The applicable institution depends on the employee's location and employment circumstances.
For example, the Sindh Employees' Social Security Institution (SESSI) administers social-security coverage in Sindh and provides benefits that include medical care and cash benefits for eligible workers. The underlying provincial framework can differ across jurisdictions.
e-square can help manage applicable social-security administration, including:
Our approach is designed to account for the province in which the employee is employed rather than treating Pakistan as a single uniform labour jurisdiction.
Employee leave administration is an important part of Pakistan payroll and HR management.
Depending on the applicable employment framework, employee records may include different categories of leave and holidays.
e-square can administer:
Public holidays can also be updated through government notifications. Pakistan's Cabinet Division publishes official public-holiday notifications for each calendar year.
Employee offboarding requires careful coordination between employment documentation, payroll and applicable labour requirements.
e-square can support the employee exit process by managing:
Termination requirements can vary depending on the employee's contract, role, province, applicable labour legislation and circumstances of separation. For this reason, e-square's EOR process focuses on reviewing the applicable employment terms before processing the employee's final settlement.
Compliance is not limited to monthly payroll. An effective EOR arrangement needs to consider the employee's complete employment lifecycle. e-square's Pakistan EOR administration can cover:
| Compliance Area | EOR Support |
|---|---|
| Employment Contracts | Contract preparation and administration |
| Payroll | Salary processing and payroll records |
| Income Tax | Applicable payroll tax administration |
| EOBI | Registration and contribution administration |
| Social Security | Applicable provincial administration |
| Working Hours | Payroll and attendance administration |
| Leave | Leave records and payroll inputs |
| Benefits | Statutory and agreed benefit administration |
| Employee Changes | Salary, role and employment updates |
| Offboarding | Final settlement and exit administration |
The exact scope depends on the agreed EOR service arrangement and the employee's employment circumstances.
e-square can help international companies coordinate these employment, payroll and statutory administration requirements through its Pakistan EOR solution.
An EOR can be useful when a company wants to employ people in Pakistan without immediately creating and operating its own local employment infrastructure.
Common situations include:
An EOR can provide employment infrastructure while the client continues to manage the employee's day-to-day responsibilities, objectives and work.
Choosing an EOR provider involves more than comparing monthly fees. Businesses should evaluate whether the provider can support the complete employment lifecycle and the compliance requirements relevant to their workforce.
Confirm that the provider has the appropriate local employment setup to administer employees in Pakistan.
Check how the provider handles payroll, tax, EOBI and applicable provincial social-security requirements.
Review whether employment contracts are prepared and administered according to the agreed employment structure.
Ask whether the provider supports onboarding, payroll, benefits, employee changes and offboarding.
Evaluate the provider's compliance processes, reporting and documentation standards.
Consider whether the provider can support your workforce as headcount increases.
Understand how employee information, payroll records and HR documentation are managed.
Compare what is included in the EOR fee and which services are charged separately.
e-square combines Pakistan-focused employment administration with payroll, HR and workforce support. Our EOR model is designed for businesses that want to hire employees in Pakistan while reducing the administrative complexity of managing local employment requirements — see our full history on the About Us page. We also provide EOR Services in UAE and EOR Services in Saudi Arabia for businesses expanding across the region.
e-square supports workforce administration for organizations operating across different industries and employee categories in Pakistan.
Our EOR services connect employment administration with payroll and ongoing HR processes.
We support applicable requirements involving employment contracts, payroll, tax, EOBI, social security and employee lifecycle administration.
Businesses can also connect EOR with recruitment support when they need help identifying and onboarding employees in Pakistan.
Digital processes help streamline employee records, payroll administration and workforce communication.
From onboarding and payroll setup to employment changes and final settlement, e-square can support the employee lifecycle within the agreed scope.
e-square maintains compliance-related credentials and supports statutory administration across the relevant Pakistan employment framework.
Real outcomes from verified clients in Pakistan — K-Electric, Careem and Ufone — served for years with compliant workforce and HR solutions.
An Employer of Record (EOR) is a local employment partner that becomes the formal employer of employees in Pakistan while the client company manages their day-to-day work.
The EOR typically manages agreed employment administration such as employment contracts, payroll, applicable tax deductions, statutory benefits and employee lifecycle administration.
Yes. An EOR arrangement can allow an international company to employ workers in Pakistan through a local employment structure without immediately establishing its own local entity.
The EOR manages the agreed employment and payroll administration while the client retains operational control over the employee's daily responsibilities.
Depending on the service scope, an EOR can manage employment contracts, employee onboarding, payroll processing, applicable income-tax administration, EOBI administration, provincial social-security administration, leave and benefits administration, employee records, employment changes, offboarding and final settlement.
The exact scope should be defined in the service agreement.
Yes. Payroll can be integrated into the EOR arrangement.
e-square can support salary processing, payroll records, applicable deductions, payslips, statutory administration and payroll reporting within the agreed scope.
An EOR can manage applicable EOBI administration for eligible employees, including registration and contribution-related processes.
EOBI is established under the Employees' Old-Age Benefits Act, 1976 and provides statutory social-insurance benefits to eligible insured persons and their survivors.
Yes, applicable provincial social-security administration can form part of an EOR service.
The relevant requirements depend on the employee's employment location and applicable provincial framework. For example, SESSI administers social-security arrangements in Sindh.
Yes. An EOR can support remote employees where the employment arrangement and applicable requirements permit it.
The employment contract, payroll, statutory administration and employee records can be structured around the employee's agreed work arrangement.
Yes. EOR services can support office-based employees as well as appropriate remote or distributed work arrangements.
The employment structure should clearly define the employee's place of work and applicable employment terms.
The client company normally manages the employee's day-to-day work, including responsibilities, objectives, projects and performance.
The EOR manages the formal employment and HR administration within the agreed scope.
An EOR generally becomes the formal employer of the employee, while a PEO arrangement can involve a co-employment structure depending on the model and jurisdiction.
For Pakistan, businesses should review the actual legal and employment structure offered by the provider rather than relying only on the service label.
Payroll outsourcing normally means a company retains its own employment relationship while outsourcing payroll administration.
With an EOR, the provider also serves as the formal employer under the agreed employment structure.
An EOR can be useful for startups that want to test the Pakistan market, hire an initial team or begin employment operations without immediately building their own local HR and payroll infrastructure.
An employee transition may be possible when a company establishes its own local employment structure.
The transition should be planned carefully to address employment contracts, payroll, statutory records, benefits, service continuity and applicable legal requirements.
EOR pricing depends on factors such as employee salary, headcount, location, statutory costs, benefits, payroll requirements, visa or work-permit support and the provider's service fee.
For this reason, e-square recommends obtaining a workforce-specific quotation rather than relying on a generic monthly EOR price.
The timeline depends on the employee's documentation, employment structure, onboarding requirements and any applicable registration or work-permit processes.
Once the required information is available, e-square can coordinate the employment setup and onboarding process.
Yes. Recruitment can be combined with EOR where a business needs support identifying candidates before placing them under the EOR employment structure.
This can create a connected process from recruitment to employment to onboarding to payroll to HR administration.
Yes. Pakistan has federal and provincial employment requirements, so employee location is an important consideration in EOR administration.
e-square can support workforce administration across relevant provincial requirements within the agreed service scope.
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