How to Convert Your Upwork Contractors in Pakistan into Employees
You found them on Upwork two years ago. They now run half your delivery. Here is how to make them a real employee in Pakistan, in seven working days, with nothing lost in between.
By TechKoders · 2 November 2026
Why companies make the switch
Three triggers come up again and again: a client security questionnaire asking whether offshore staff are employees or contractors; an investor or acquirer's due diligence list; and the day a key freelancer mentions that a local company offered them a contract with insurance. Platform fees of 10–20% on top are the fourth.
An Employer of Record (EOR) answers all four. TechKoders employs the person under a Pakistani-law contract, runs payroll, tax, EOBI, social security, insurance, leave and gratuity, and you continue to manage them exactly as before.
The seven steps
- Agree the number. Take what you pay now, strip the platform fee, and agree a gross monthly salary in rupees. Most people end up with more in hand and benefits, because the platform cut was larger than the statutory costs.
- Tell the person. Frame it as what it is: a proper contract, medical insurance, a pension record and paid leave. We provide a one-page explainer in English and Urdu.
- Sign the service agreement with TechKoders: fee, IP, confidentiality, notice. Electronic signature, same day.
- We onboard them. CNIC, tax number, bank details; employment contract signed; FBR, EOBI, social security and insurance registered. Five to seven working days.
- Close the platform contract at the end of the current billing period. Nothing overlaps; nothing is lost.
- First payroll. Salary paid on the first business day of the next month, payslip issued, your first itemised invoice.
- Transfer IP and access. The new contract assigns all past and future work product to you; we help document the handover of repositories, accounts and credentials.
What changes for the person
- Same manager, same hours, same tools, same work.
- A payslip and an annual tax certificate: the documents a Pakistani bank, embassy or landlord asks for.
- Hospitalisation insurance from day one; optional outpatient allowance.
- 14 days' annual leave plus casual and sick leave, and gratuity accruing from month one.
Retention is the quiet benefit. People with a contract and insurance do not leave for a 10% raise.
What it costs you
Gross salary, employer EOBI and social security (a few thousand rupees), a monthly gratuity provision and the medical premium at cost, itemised, plus our flat fee from $249 per employee per month. For most clients the total is close to what they were paying through the platform, now with a contract and benefits attached. Country pages: US · UK · Canada · Australia · الخليج.
Ready to make your Pakistan hire official?
Tell us who the person is and their salary. A fixed EOR quote within one working day.