Offer Letter Generator — Pakistan
Offer Letter Generator for Pakistan — Provincial Labour Law Compliant
Pakistan employment law is primarily provincial, with each province having its own labour legislation following the 18th Constitutional Amendment devolution. The key legislation includes the provincia...
Local Requirements
Offer Letter Generator Requirements in Pakistan
Comply with provincial labour laws (Punjab, Sindh, KPK, Balochistan each have separate acts). EOBI registration mandatory (5% employer + 1% employee). Provincial ESI equivalents (PESSI in Punjab, SESSI in Sindh). Minimum wage per provincial notification. Gratuity after completion of service.
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Pakistan employment law is primarily provincial, with each province having its own labour legislation following the 18th Constitutional Amendment devolution. The key legislation includes the provincial Industrial and Commercial Employment (Standing Orders) Ordinance, the Factories Act, and the Shops and Establishments Ordinance. EOBI (Employees Old-Age Benefits Institution) provides mandatory pension coverage.
Because employment terms follow the province where the employee works, a Pakistani offer letter should be framed for that jurisdiction, Punjab, Sindh, Khyber Pakhtunkhwa or Balochistan, while roles in Islamabad Capital Territory follow the federal statutes. It should set out the job title and pay, the probation period, commonly three months under the Standing Orders framework, confirmation on completion, the notice each side must give, and the leave entitlements, and confirm EOBI registration for old-age benefits.
The letter should also reflect the provincial social security scheme, PESSI in Punjab or SESSI in Sindh, which entitles lower-paid workers to medical cover funded largely by the employer, and note gratuity, customarily around thirty days' wages for each completed year of service where no approved provident or pension fund exists. Stating the applicable provincial minimum wage, the FBR tax treatment and any professional tax gives the Lahore, Karachi or Faisalabad hire a clear and compliant offer.
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Offer Letter Generator in Pakistan
FAQ
Frequently Asked Questions
After the 18th Amendment, labour laws in Pakistan are provincial matters. Punjab follows the Punjab Industrial Relations Act 2010 and Punjab Shops and Establishments Ordinance 1969. Sindh has the Sindh Industrial Relations Act 2013. KPK has its own Industrial Relations Act. Each province sets its own minimum wage, working conditions, and employment terms. An offer letter must comply with the specific provincial law where the employee will be based. This means a company with offices in Lahore and Karachi may need slightly different offer letter formats.
EOBI (Employees Old-Age Benefits Institution) provides pension and old-age benefits to workers in Pakistan. Employers with 5+ employees must register. The contribution is 5% of minimum wage by the employer and 1% by the employee. Upon reaching age 60 (men) or 55 (women) with minimum 15 years of contributions, employees receive a monthly pension. EOBI also provides old-age grants for those who do not qualify for pension and survivor benefits. The offer letter should mention EOBI coverage and contribution obligations.
Pakistani employees are covered by two main statutory schemes. EOBI, the Employees' Old-Age Benefits Institution, is a federal pension scheme to which the employer contributes an amount equal to 5 percent of the minimum wage and the employee 1 percent, funding a monthly pension at pensionable age. Separately, each province runs an employees' social security institution, such as PESSI in Punjab and SESSI in Sindh, which provides medical care and cash benefits to secured workers earning up to a wage ceiling, funded largely by an employer contribution of around 6 percent of wages. An offer letter should confirm registration with EOBI and the relevant provincial scheme.
Where an employer does not operate an approved provident fund or pension scheme, gratuity is the customary long-service benefit in Pakistan. Under the Standing Orders framework it is generally calculated at thirty days' wages for each completed year of service, based on the last drawn wage, and is payable on retirement, resignation or termination other than for misconduct. Some employers instead run a provident fund with matching contributions, in which case that replaces gratuity. An offer letter should state whether the role carries gratuity or provident fund so the employee understands the end-of-service benefit that applies.