Pakistan, with its vast market and abundant human resources, continues to attract the attention of overseas employers. However, when engaging in cross-border recruitment, understanding the statutory benefits of the target country is crucial. This article will introduce the statutory benefits in Pakistan to help overseas employers better understand the employment environment, enabling them to manage their workforce effectively and enhance productivity.

I. Minimum Wage Standards

The Pakistani government has established minimum wage standards to safeguard the basic rights of laborers. According to the latest policies in Pakistan, the minimum wage is set at PKR 17,500 per month (approximately CNY 780). This standard applies to all industries and professions, including industrial, commercial, and service sectors.

II. Overtime Pay

The Pakistani government mandates the payment of overtime for employees working beyond 48 hours per week. Overtime is calculated at 1.5 times the hourly basic wage. Additionally, overtime pay rates differ for weekends and public holidays. Weekend overtime pay is set at 2 times the basic wage, while public holiday overtime pay is 3 times the basic wage.

III. Social Insurance

Pakistan has established a social insurance system to protect the rights of workers in cases of accidents or illnesses. According to this system, employers are required to contribute a certain percentage of social insurance fees to the National Social Insurance Bureau. These fees are used to cover medical expenses and disability compensation for employees in the event of accidents or illnesses.

IV. Annual and Sick Leave

As per the labor laws in Pakistan, employees are entitled to 7 days of paid annual leave after working continuously for one year. Additionally, employees have the right to 14 days of paid sick leave. Ifan employee requires leave due to illness for more than 14 days, the employer is obligated to pay the basic wage for that period.

V. Retirement Benefits

The Pakistani government has established are tirement benefits system to ensure the well-being of workers after retirement. Under this system, employers are required to contribute a certain percentage of retirement benefits fees to the National Retirement Benefits Bureau. Employees are entitled to receive a certain percentage of their salary as retirement benefits after retiring.

VI. Women's Rights

The Pakistani government places a high emphasis on the protection of women's rights. According to labor laws in Pakistan, female employees have the right to 16 weeks of maternity leave during pregnancy. Additionally, female employees have the right to take childcare leave within two years of childbirth.

In conclusion, understanding the statutory benefits in Pakistan is crucial for overseas employers. By acquiring this knowledge, employers can effectively manage their workforce, enhance productivity, and avoid unnecessary troubles and losses resulting from violations of local laws and regulations.

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