Employer of Record

Employer of Record in Pakistan

Already working with people in Pakistan as contractors? Convert them into compliant, insured, full-time employees without opening a company. TechKoders becomes the legal employer; you stay the manager. Save the cost and time of opening a company: one fee quoted to your team size, plus actual salary cost.

What it is

Compliant employment in Pakistan, without the Pakistani entity

With an Employer of Record, a Pakistani company becomes your team member’s formal employer, so your business never has to register here. As employer, TechKoders (Private) Limited issues the contract, processes payroll every month, deducts and files income tax, pays into EOBI and social security, arranges group health cover and keeps leave and gratuity records. Your employee reports to you, works your hours and uses your tools. We handle the paperwork, the filings and the statutory risk, and send you one itemised invoice a month.

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Contract & onboarding

Pakistani-law employment contract with IP assignment, confidentiality, data protection and your code of conduct. Tax, EOBI and social security registration completed by us.

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Payroll & tax

Gross-to-net calculation, salary paid on the first working day, payslips, monthly tax deposit with the FBR and an annual tax certificate for the employee.

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Insurance & benefits

Group inpatient and outpatient medical cover, annual and sick leave tracking, gratuity accrual, public holidays and any benefit you want to add on top.

Who it is for

Three situations where EOR beats the alternatives

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Contractor conversion

Developers, designers, support agents or accountants you pay through Upwork, Deel-style platforms or direct transfers. Move them to a real employment contract with benefits, and remove misclassification risk before your next audit or funding round.

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Pre-entity hiring

You are testing Pakistan as a delivery location and want two or three hires before deciding on a subsidiary. Employ through us now, transfer them to your own entity later at no penalty.

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A specific hire

You found the exact person, perhaps a former colleague who moved back to Lahore or Karachi, and you want to employ them properly rather than lose them to a local employer offering a contract and insurance.

How it works

Live payroll in seven working days

  1. Scope. You tell us who the person is, where in Pakistan they live, the gross monthly salary and start date. We send a fixed quote within one working day.
  2. Service agreement. Between your company and us there is one brief agreement covering the fee, payment terms, notice, confidentiality and IP. Signed electronically.
  3. Employee onboarding. We collect the employee's identity, tax and bank details, sign the Pakistani employment contract, register EOBI and social security and activate medical insurance.
  4. Monthly cycle. Billing runs on the 20th, your payment arrives by the 25th, and salaries go out on the 1st. Tax and contributions deposited, payslip and compliance report sent to you.
  5. Ongoing HR. We handle leave requests, pay rises, bonuses, letters, insurance claims and performance records and, if it comes to it, notice and final settlement.
Pricing

Actual cost plus a flat fee. No percentage of salary.

Each invoice breaks the employee’s true Pakistan cost into its lines, with our fee shown separately at the end. Quotes are given in USD, GBP, EUR or AUD, net of taxes and bank charges.

Pass-through at cost

Gross salary (income tax withheld and deposited by us), employer EOBI and social security, monthly gratuity provision, medical insurance premium billed annually.

Management fee

Quoted to your team size. Lower from the second employee; per-seat rates for teams of ten or more. Covers every HR, payroll, tax and compliance task on this page.

One-time and optional

Setup fee for contract drafting and registrations. Add-ons if you want them: a desk at our Lahore office, laptops bought at cost, background checks, and recruitment when you still need to find the person.

To cover end-of-service dues, we keep one month’s gross pay as a deposit, returned when the engagement ends. Use the cost calculator for a dedicated-staffing comparison, or ask us for an EOR quote.

Compliance

What Pakistani labour law requires, and who does it

ObligationRuleHandled by
Income taxDeducted monthly from pay and paid to the FBR, with a yearly certificateTechKoders
EOBIBoth employer and employee shares paid to EOBI, the old-age pension fundTechKoders
Social securityRegistration with the province’s social security institution and the employer’s contributionTechKoders
LeaveFourteen or more days of yearly leave, with casual days, sick days and public holidays on topTechKoders
GratuityThirty days' wages per completed year, paid on exitTechKoders
Contract and noticeWritten appointment letter, probation, notice period, final settlementTechKoders
Day-to-day managementTasks, hours, performance, tools and reporting lineYou

Need legal review of the structure, your IP terms or a Pakistan entity comparison? Our clients work with KBL & Associates, a Lahore corporate law firm, for the legal side.

Choosing a structure

Contractor, employer of record or your own company: the real trade-offs

FactorContractorEOR with TechKodersYour own entity
Time to startDaysAbout a weekMonths
Legal employerNobodyTechKodersYour company
Tax, EOBI, social securityThe person's own problemHandled every monthYour filings
Misclassification riskHigh if full-time under your directionLowLow
IP ownershipOnly if the contract assigns itAssigned to you in every contractYours
Office seat and equipmentTheir ownOur Lahore facility or company kitYou arrange it
Best forShort, genuine projectsTeams of 1 to 50 without a Pakistani companyLarge, permanent or licensed operations
Where your team sits

Provincial rules in one minute

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Punjab (Lahore)

Where our facility is. Minimum wage PKR 40,000 a month; social security through PESSI; EOBI PKR 2,000 employer share.

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Sindh (Karachi)

Minimum wage of PKR 43,000 since 1 July 2026, with social security through SESSI.

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Islamabad

Minimum wage of PKR 40,700 since 1 July 2026; EOBI applies here as in every province.

Khyber Pakhtunkhwa has notified PKR 40,000 and announced PKR 45,000; Balochistan's last notified rate is PKR 37,000. We register each person with the institutions for the place they actually work.

Hours and shifts

Working time, overtime, leave and exits

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48-hour week

A working day of no more than 9 hours and a week of no more than 48, with rest breaks. Most teams work five days.

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Overtime

Approved beforehand and paid at double time where the law covers the role.

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Night and early shifts

For US or Australian hours, the contract sets out a shift allowance and transport.

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Leave

14 days' paid annual leave after a year, plus casual, sick and maternity leave under provincial law.

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Public holidays

Seven fixed national holidays, plus both Eids, Ashura and Eid Milad-un-Nabi.

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Exits

A month’s notice or salary instead, final dues inside two working days, and gratuity at 30 days’ pay per year served where it applies.

Later on

Taking your team in-house when you are ready

Once your Pakistan team is large and permanent, you may want your own company. Our build-operate-transfer option moves your employees across with their service dates, leave and gratuity intact, and our security and compliance controls stay in place until handover.

Side by side

TechKoders vs Deel, Remote and Multiplier for a Pakistan team

Global EOR platformsTechKoders
How the fee worksA single worldwide dollar fee per head, whether you hire one engineer or fiftySet by your headcount and reduced as the team scales
Legal employer in PakistanOwn entity or a local partner, depending on providerTechKoders (Private) Limited, operating in Lahore since 2007
Office seat if remote work failsNot offeredOptional workstation at our Lahore facility
Laptop and equipmentUsually a separate add-on or vendorProcured locally at cost, asset-tagged to your company
Finding the personSeparate recruiterOptional recruitment from our own pipeline
Moving to your own entity laterExit fee and transfer terms varyPlanned handover of contracts and records, no lock-in

Global platforms are a good fit when you hire in twenty countries at once. When Pakistan is where your engineers are, a local employer with a real office usually costs less and solves problems faster.

Protecting your product

IP, confidentiality and devices for software teams

  • IP assignment chain. The employee assigns all work product to TechKoders as employer, and the service agreement assigns it straight on to you. Both links are written, so ownership never sits in a gap.
  • Confidentiality over non-competes. Pakistani courts generally refuse to enforce a non-compete once employment has ended (Contract Act 1872, s.27). Real protection comes from IP assignment, confidentiality, access control and a clean exit checklist.
  • Company devices and access. Laptops are registered to you or to us on your behalf, with your MDM or security tooling installed before day one and returned at exit.
  • Work continuity. UPS and a backup connection allowance for home workers, or a seat at our Lahore facility for anyone who needs a dependable office.
  • Legal review. For a contract review under Pakistani law, our legal partner KBL & Associates advises on EOR structures.
FAQ

Employer of Record in Pakistan: common questions

What is the difference between TechKoders' dedicated staffing and the EOR service?

With dedicated staffing we recruit, employ, equip and manage a full-time team member for you from our Lahore facility. With Employer of Record we take a person you have already chosen, often someone you have been paying as a contractor, and employ them compliantly on your behalf: contract, payroll, taxes, insurance and benefits. You keep managing the person directly.

Why convert a Pakistani contractor to an employee?

Three reasons. Retention: a proper contract, medical insurance, paid leave and gratuity keep good people. Protection: IP assignment, confidentiality and non-solicitation clauses that are enforceable in Pakistan. Compliance: long-running contractor relationships are increasingly treated as disguised employment by auditors and investors; an EOR removes that exposure.

How much does it cost?

One fixed monthly fee per person, set by your team size, plus the employee’s real cost: gross pay, pension and social security contributions, gratuity set aside each month and medical cover at cost. A one-time setup fee covers contract drafting and registrations. Everything is itemised on one invoice.

How fast can you onboard?

Usually five to seven working days after the service agreement is signed. We sign the Pakistani employment contract, register the employee for tax, EOBI and social security, activate insurance and set up payroll. The first salary runs in the first full month.

Can the employee keep working from home?

Yes. The EOR service is location-independent within Pakistan. If you prefer, the employee can also be seated at TechKoders' Lahore facility with a workstation, dual monitors, backup power and monitored internet for an additional desk fee.

Who owns the code, designs and data?

You do. The employment contract assigns all intellectual property created in the course of employment to the client and imposes confidentiality and data-protection duties. Our service agreement with you mirrors these terms, and we can adopt your own IP, security and acceptable-use policies.

In which currency do we pay, and how is the employee paid?

You settle our invoice in USD, GBP, EUR or AUD by bank transfer. Your engineer is paid in rupees into their own bank account, and the invoice shows the exchange rate used. Payroll runs on the first working day of each month.

What statutory benefits does a Pakistani employee receive?

Each month we deduct salary tax, pay into the pension and provincial social security funds and keep the leave ledger (at least fourteen annual days, with casual, sick and public holidays added); gratuity grows by one month’s salary for every completed year; and every hire signs a written contract with a notice clause. TechKoders administers all of it.

What happens if we want to end the engagement?

Give us sixty days' notice. We give the employee the legal notice, pay out earned leave and gratuity, issue the closing tax certificate and invoice the final amounts. A refundable deposit equal to one month's salary is held for these dues. If you later want to hire the person into your own entity, we release them without penalty.

Can you employ more than one person, or a whole team?

Yes. The management fee drops from the second employee, and teams of ten or more move to a per-seat rate. Many clients start with one converted contractor and grow to a department.

Is it safer to keep Pakistani staff as contractors?

Not when they work full-time under your direction. They can later claim employee rights such as notice, gratuity and social security, and IP is only yours if the contract assigns it. An EOR contract closes both gaps.

What is the minimum wage in Lahore?

Punjab's notified minimum wage is PKR 40,000 a month for an unskilled adult worker; no 2026-27 rate had been notified as of November 2026.

How many hours can staff in Pakistan work?

No more than 9 hours a day or 48 a week, and overtime at double pay where the law covers the role.

How much notice is needed to end employment?

Confirmed staff get a month’s notice or salary in its place, a written reason, and their final dues inside two working days.

Can we move our team to our own Pakistan company later?

Yes, through our build-operate-transfer option, with service dates, leave and gratuity carried across.

Is TechKoders cheaper than Deel or Remote for hiring in Pakistan?

For most Pakistan teams, yes. Statutory costs are identical with any provider. Your saving is on the fee, which we set by headcount instead of a flat worldwide charge, and on time, with a team in Lahore that answers during your day. Ask for a quote and compare.

Can I move my contractors from Deel or another platform to TechKoders?

Yes. We issue employment contracts with a start date that lines up with the end of the old arrangement, so there is no gap in pay or in IP assignment.

Are non-compete clauses enforceable in Pakistan?

Generally not once the job has ended: Pakistan’s Contract Act 1872 (s.27) voids restraints of trade. We rely on IP assignment, confidentiality and access control instead.

What if an employee’s power or internet keeps failing?

We can pay a backup allowance through payroll, or give the employee a seat at our Lahore facility.

Guides: What a developer in Lahore costs · Contractor misclassification in Pakistan · السعودية (عربي) · الإمارات (عربي)

Dedicated staffing · Transfer your team · HR & payroll outsourcing

By country

EOR details for your market

Withholding, treaties and time zones from your side: USA · UK · Canada · Australia · Europe · الخليج (Arabic). Guides: Converting Upwork contractors to employees · EOR or dedicated staffing?

Make your Pakistan hire official this month.

Tell us who the person is and their salary. Expect a fixed EOR quotation from us inside one working day.

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