Number of partners: One shareholder. Capital (max/min): No minimum capital required Shareholders and liability: Unlimited liability
Partnership
Number of partners: Minimum of 2 with a maximum of 20. Capital (max/min): No minimum capital required (generally it is PKR 100,000) Shareholders and liability: Liability of the partners is unlimited
Private Limited Company
Number of partners: Minimum number is 2, while as the maximum number is 50. Capital (max/min): Minimum paid up capital of PKR 100,000 Shareholders and liability: Limited liability to the amount contributed.
Public Limited Company
Number of partners: Minimum number is 3, while as there is no limit on the maximum number of members/shareholders. Listed Public Limited companies must have at least 7 members. Capital (max/min): Minimum paid up capital of PKR 100,000. Public limited companies have a minimum capital requirement of PKR 200 million Shareholders and liability: The liability of a member is limited to the face value of the shares he owns
Source:
International Labour Organization, ILOSTAT database
2017
2018
2019
Total activity rate
54.64%
54.43%
54.50%
Men activity rate
84.37%
84.69%
84.79%
Women activity rate
23.42%
22.62%
22.63%
Source:
International Labour Organization, ILOSTAT database
Working Conditions
Legal Weekly Duration
48 hours, 54 hours for seasonal factories.
This applies only to factories/offices employing ten or more workers.
Retirement Age
60 years
Working Contracts
Employment contract (also called Appointment letter) is regulated by Industrial and Commercial Employment Ordinance of 1968 Every employer in an industrial or commercial establishment (with more than 20 workers) is required to issue a formal appointment letter at the time of employment of each worker. The appointment letter should necessarily mention the main terms and conditions of employment, namely nature and tenure of appointment, pay allowances and other benefits.
There are specific rules for termination of an employee. Terminating an employee is not always so easy.
In 2020, the government increased the minimum wage to PKR 17,500 per month.
Average Wage
In 2018, the average hourly gross wage was PKR 90 according to the ILO (latest available data).
Social Contributions
Social Security Contributions Paid By Employers: 6% of covered earnings (7% of earnings up to Rs. 5,000 in Balochistan province) + 5% for pension each month.
Social Security Contributions Paid By Employees: 1% of covered earnings for pension + Rs. 40 for healthcare each month.
Social Partners
Social Dialogue and Involvement of Social Partners
The labour relations in Pakistan are controlled by the Industrial Relations Ordinance of 2002 gives industrial workers the right to form trade unions and bargain. The country’s petroleum sector is subject to the Essential Services Maintenance Act. The Act bans strikes, limits workers’ rights to change employment, and affords little recourse to a fired worker, but allows collective bargaining. However, this legislation is not applied very frequently. The government of Pakistan has ratified 34 ILO conventions relating to human rights, workers' rights and working conditions.