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How to Hire Employees in Pakistan for UK-Based Companies: A Complete Guide by Remire

Learn how UK-based companies can hire employees in Pakistan legally and efficiently. This complete guide by Remire covers compliance, contracts, payroll, and the fastest hiring methods.
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UK companies are hiring more employees from Pakistan than ever. The talent is skilled. The costs are lower. Also, the hiring process is easy when you know how it works

In this guide, you’ll learn how to hire employees in Pakistan for UK-based companies while staying fully compliant.

We will also discuss how an Employer of Record (EOR) like Remire can simplify hiring and keep you fully compliant.

Let’s begin!

Why are UK Companies Hiring Talent from Pakistan?

In recent years, Pakistan has transformed into a global talent hub. The country has a population of over 265 million, and the median age is just 20.6 years (Worldometer). This makes Pakistan one of the world’s youngest, most energetic, and rapidly evolving talent pools.

Here’s what’s attracting UK companies:

1. Cost-Effective Talent Acquisition

Hiring in Pakistan gives UK businesses massive cost savings, often 60–70% lower than equivalent roles in the UK ( Epicx). 

In Pakistan, equally skilled professionals are available at a fraction of the cost, without compromising quality.

2. Highly Educated Workforce

Pakistan produces more than 400,000 university graduates every year, especially in:

  • IT & software engineering
  • Business administration
  • Finance
  • Data analytics
  • Digital marketing
  • English & communication

Cities like Lahore, Islamabad, and Karachi are home to top-tier universities and globally competitive graduates.

3. IT & Tech Excellence

According to Payoneer, Pakistan is ranked:

  • #4 globally in freelancing
  • #3 in fastest-growing freelancer earnings

The IT sector is growing, with specialists in:

  • Full-stack development
  • Mobile app development
  • QA & testing
  • Cloud & DevOps
  • Cybersecurity
  • Digital marketing
  • UI/UX design

4. Strong English Proficiency

Pakistan has good English fluency, especially among professionals in Asian countries. This makes communication smooth and reduces misinterpretations or delays.

5. Cultural Compatibility with UK Businesses

Pakistan’s corporate environment has strong alignment with Western business practices. Professionals understand:

  • Formal communication norms
  • Structured reporting
  • Clear hierarchy
  • Project documentation

This compatibility creates smooth integration with UK teams.

6. Government Support for Foreign Companies

Pakistan’s government is encouraging international investment through:

  • Tax incentives
  • Simplified business registration
  • Support for digital industries
  • Special economic zones

All these factors make hiring easier and more cost-efficient for UK companies.

Understanding Employment Structures in Pakistan: Employees vs. Contractors

Before you start hiring, it’s crucial to understand how Pakistani labor laws classify workers.

Type Details
Full-Time Employees Work exclusively for one employer. Employer handles taxes, social security, minimum wage, overtime, leave, and statutory benefits.
Independent Contractors Flexible, invoice for services, manage own taxes, work with multiple clients, and no employee benefits.

Risk: Misclassifying contractors can lead to fines, retroactive benefits, and legal issues. Using an EOR like Remire avoids this risk.

Key Employment Laws & Compliance Requirements in Pakistan

Pakistan’s employment system includes several labor, tax, and social security laws that foreign employers must follow.

1. Employment Contracts

Mandatory for 20+ employees, in English or Urdu. Includes job role, compensation, hours, leave, benefits, notice periods, confidentiality & IP rights.

2. Working Hours & Overtime

Max 48 hours/week, 8-hour standard shift, up to 3 hours/day overtime, usually paid double.

3. Minimum Wage & Benefits

  • Minimum wage: PKR 37,000/month (2024–25).
  • Benefits: social security (~6%), EOBI contributions, health coverage, maternity leave, sick & annual leave, public holidays.

4. Tax Requirements

Income tax 0–35%, monthly withholding required, FBR registration mandatory.

Hiring Options for UK Companies

Option Pros Cons
Set Up Local Entity Full control, direct hiring 3–6 months setup, high legal & compliance obligations
Hire Contractors Quick, flexible Misclassification risk, weak IP protection, and limited control
Hire in the UK via EOR (Remire) Quick hiring, full compliance, payroll & benefits handled None, recommended for most UK companies

Why Remire Is the Ideal EOR Partner to Hire Employees For Uk Based Companies?

Partnering with Remire gives you an end-to-end hiring and payroll solution that eliminates all legal and administrative complexity.

Here’s what sets Remire apart:

  • Hire in 48–72 Hours: Immediate onboarding without setting up a legal entity.
  • Full Compliance: Worker classification, contracts, payroll, taxes, and social security.
  • Payroll & Benefits: Multi-currency payroll, leave management, insurance options.
  • IP & Legal Protection: Confidentiality, IP clauses, dual compliance (UK & Pakistan).
  • Transparent Pricing & Scalability: Fixed monthly cost, no hidden fees, hire 1–100 employees easily.
  • Dedicated Account Management: Local HR experts, 24/7 support, monthly compliance updates.

Hiring Employees for UK-Based Companies Through Remire: 7-Step Process

  1. Define Hiring Needs: Role, skills, compensation, start date.
  2. Recruit Talent: Use your process, Remire shortlist, or local agencies.
  3. Interviews & Selection: Background checks, document verification, references.
  4. Contract Preparation: Compliant contracts with IP & confidentiality clauses.
  5. Onboarding: Tax registration, social security enrollment, payroll setup.
  6. Monthly Management: Payroll, tax deductions, benefits, HR administration.
  7. Offboarding (if needed): Final settlements, notice period, documentation.

How to Source Talent in Pakistan: Practical Tips

Where to Find Candidates

You can find talent through Remire, LinkedIn, and University career offices

Writing Job Descriptions

Highlight international exposure, skill development, growth opportunities, competitive salary, and UK company culture

Interview Tips

  • Consider time zones, prayer times
  • Allow small talk (relationship-building)
  • Use video calls

Managing Pakistani Employees: 6 Best Practices for UK-Based Companies

  1. Schedule meetings during overlapping business hours
  2. Keep communication clear & structured
  3. Respect cultural needs (Ramadan, Eid, prayer breaks)
  4. Provide regular feedback
  5. Offer learning opportunities
  6. Use modern collaboration tools (Slack, Asana, Teams)

Estimated Cost of Hiring in Pakistan for UK-Based Companies

Category Details (2025 Breakdown)
Salary Ranges (Monthly) • Entry-Level: PKR 50,000 – 80,000 (£140 – £225)
• Mid-Level: PKR 100,000 – 200,000 (£280 – £560)
• Senior-Level: PKR 250,000 – 500,000 (£700 – £1,400)
• Expert Roles: PKR 500,000+ (£1,400+)
Statutory Costs • Social security: ~6%
• EOBI contributions
• Insurance (where applicable)
EOR Service Fees • Fixed monthly cost
• No percentage-based markups
• Volume discounts available

Overall:
Hiring in Pakistan through Remire is still 50–70% more cost-effective than hiring in the UK.

Challenges UK Companies Face — And How Remire Solves Them

Challenge How Remire Solves It
Compliance complexity Local legal experts ensure 100% compliance
Payment delays or currency issues Multi-currency payroll with stable processing
Misclassification risks Proper worker classification from hiring day
Cultural differences Cultural onboarding for smooth collaboration
IP and data protection Strong legal frameworks in every contract
Time zone hurdles Workflow planning & async collaboration setup

Industries Where Pakistani Talent Excels

  • IT & Development
  • Customer Support
  • Accounting & Finance
  • Digital Marketing
  • Engineering
  • Healthcare administration
  • Legal support

Legal Considerations for UK Employers

  • UK GDPR + Pakistani data protection compliance
  • Double taxation treaty benefits
  • Local labor law compliance
  • Arbitration clauses for disputes

Remire ensures all these elements are properly handled.

Future Outlook: Why Pakistani Employees Will Become More Attractive for Uk Based Companies?

  • 5G expansion, tech parks, startup ecosystem growth
  • Government incentives
  • Growing freelancer economy
  • Good connection with people and businesses in the UK
  • Pakistan is becoming a top global remote hiring destination

Pakistan is on track to become a top global remote hiring destination.

 

Frequently Asked Questions

How can I get a job in the UK from Pakistan?

You can apply through UK job portals, company websites, or recruitment agencies. If selected, the employer sponsors your Skilled Worker Visa.

You register as an employer, verify the worker’s documents, set up payroll, and follow UK tax and employment laws.

Yes. UK companies can hire remote workers from any country.

Cost depends on salary, National Insurance, pension contributions, and benefits. On average, add 20–30% on top of the employee’s base salary.

Conclusion: Hire Employees in Pakistan for US-Based Companies the Smart Way with Remire

Hiring talent from Pakistan gives UK companies the perfect blend of quality, affordability, and scalability. But navigating international compliance, taxes, payroll, and labor laws shouldn’t slow down your growth.

That’s where Remire becomes your strategic partner.

With Remire as your Employer of Record, you can: