All About Offering Employee Benefits in Pakistan

Social Security

Employers and employees in Pakistan must make mandatory contributions towards the following:

• Employees’ Old Age Benefits Institution (EOBI) (for employers with five or more employees)

• Provincial Employees’ Social Security Institutions (ESSI)

• Sickness and maternity benefits (where applicable)

Time Off

Employees in Pakistan are entitled to statutory leave under applicable labor laws. This includes a maximum of 30 days of paid leave after 12 months of continuous service and multiple paid national and religious holidays annually. Employees who resign or are terminated must be compensated for unused accrued annual leave.

Sick Leave

In addition to paid vacation time, Pakistani employees are also eligible for paid sick leave with proof of a medical certificate. They are entitled to eight days paid at 100% of their regular salary, with unused sick leave eligible to be carried over every year for a maximum of 16 days per year.

Casual leave

Employees also receive up to 10 days per year for unforeseen circumstances. Unavailed casual leaves in a year shall lapse.

Provident Fund & Retirement Enhancements

Although statutory pension contributions are required through EOBI, some employers offer additional retirement or provident fund arrangements to strengthen long-term financial security for employees.

Health Coverage Enhancements

 Provincial social security programs provide medical benefits to eligible employees. Employers may supplement this with private health coverage to enhance employee access to care.

Performance Bonuses

Under statutory requirements, employers who generate profits in a given year may be required to distribute bonuses to eligible employees. Many companies supplement this with performance-based incentives or discretionary bonuses to attract and retain skilled professionals.