How to Pay Foreign Contractors in Pakistan

June 14, 2021

Salary to foreign employees in India is given in the Pakistani rupee. The independent contractor payment schedule is defined by the payment terms and rights in Pakistan. The average Pakistani independent contractor salary is PKR 2,227,336 per annum and PKR 1071 per hour. Paying independent contractors hourly in Pakistan has gained immense significance because a higher lot of software developers and foreign workers work remotely from the country. They usually use the English language for dealings rather than their native language Urdu.

The paying contractor pays to the workers working remotely from Pakistan by a US company tax occurs through various remittance services operating in the country. These companies charge a particular amount for paying 1099 employees and the independent contractor pays in Pakistan. Western Union, International Wire Transfer, International Money Transfer, Remitly, Xoom, and Bank transfers are some remittance services offered to pay employee cash legally in Pakistan. Payments to overseas contractors are sent on the US exchange rates i.e. 155.56 PKR. 

http://destined2reign.weebly.com/uploads/1/0/1/6/10162441/928074933.png

Salaries in Pakistan:

The average monthly salary in Pakistan is 81,800PKR. The average software developer salary in Pakistan is 512,775 per annum. Remittance services such as TransferWise, Remitly, Xoom, Payoneer, and IMT are available in both India and Pakistan. Many people working as independent contractors in Pakistan for US companies utilize these services. These services can also be used for getting paid by international clients.

Working and hiring foreign contractors of Pakistan:

Today, many people including software developers are working remotely from Pakistan. Hiring an independent contractor in Pakistan depends on the Provisions of Independent Contractor Agreement in Pakistan. A remote employee also provides Payments to Foreign Contractor for Services Form. An Independent contractor agreement sample contains information of contractor and client particulars, services, payment, and due date. Pakistanis can also work on US payroll if they have a US-based visa which includes bonuses, salaries, and deductions.

https://spiked.co.zw/wp-content/uploads/EcoCash-launches-remittance-service.jpg

Income taxes for Pakistani remote workers:

Employees working remotely from Pakistan have to file and pay income taxes of states where the employee lives. Taxes are not higher for foreign contractors because when an employee files an annual return you have to make estimated quarterly tax payments. However, paying independent contractors in cash in Pakistan is not illegal in Pakistan but it is usually done to avoid payroll and income taxes.

Following are some important remittance services currently operational in Pakistan:

Western Union

Western Union services are trustworthy and are available in over 200 states of the world. The company’s website provides opportunities for reporting a security bug and fraud awareness. The company has 150 million digital and retail customers all over the world. The company delivers contractor pays and helps in paying freelancers of Pakistan through its convenient WU app, in person at various locations, and over the phone. The payments to foreign contractors for services are received in the local currency. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. The company charges USD 2.72 for making transactions in Pakistan.

https://marketsharegroup.com/wp-content/uploads/2020/05/Online-Money-Transfer.jpg

RIA:

Freelancers and foreign contractors are also getting their salaries from foreign companies using RIA. RIA is considered one of the largest remittance services that operate in almost 150 countries including Pakistan. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. However, the security check process of RIA is an extensive procedure. Due to this RIA is not recommended for fast transfers of Pakistan contractor pays.

Remitly:

Remitly is one of the best methods to transfer Pakistani contractor pays and paying 1099 employees because it offers instant deliveries in the recipient’s mobile wallet (Express Transfer). Remitly delivers foreign independent contractor pays over $1000 without a fee. Economy transfer service transfers contractor pays within 3-5 days. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments.

Xoom:

Xoom by PayPal is another best remittance service that is operational in Pakistan. Xoom offers fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending contractor pays. Remittance charges are locked in the exchange rates. The maximum limit of sending money is $10,000. The company’s application helps to track the contractor payments and freelancer salaries. A $20 gift card is given to the referrals as well. However, complaints of delays and cancellations of the payments have also been observed.

International Money Transfer:

IMT is also an affordable option for paying employee cash legally in Pakistan. It is a secure method of paying wages to overseas employees in Pakistan. Online transfers are easily made 24/7 for transferring contractor pays swiftly and timely through IMT. Transfer can occur without a fee and at very low rates depending on the region from where freelancer payments are sent. However, a mark-up is made on the exchange rates through which they earn money. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50

http://www.philippinesplus.com/wp-content/uploads/2013/08/BDO-Remittance-Services.jpg

Wise International Payments:

Wise International Payment is another best way to send contractor pays to Pakistan. It provides high limits of $1000,000 in a single transaction and offers low costs. Bulk payment options are also available and the transactions are usually made online. Furthermore, exchange rates are real and the amount can also be received in the local currency i.e. Pakistani rupee. However, the one-time verification process can take up to several days.

Payoneer:

Salaries can be paid to employees in Pakistan using Payoneer. Funds withdrawal from payoneer can be done through Payonner card from various banks. The transactions can be made in 0-3 days from payoneer. Payoneer charges $3 as an average transfer fee. Payments can be sent through Mastercard which has a daily limit of $25,00. Also, an average of 1% is charged in foreign exchange rates by Payoneer.

https://international-adviser.com/wp-content/uploads/sites/3/2020/08/Money-transfer.jpg

International Bank Transfer:

Foreign contractors can also be paid through bank transfers. However, a hefty fee of the banks limits their use. About $30 is charged to make a transaction and up to 5% margin is also charged at the interbank rate. This depends on the amount you are transferring. The transfer can be done quickly in 1-5 working days.


How to Pay Foreign Contractors in Pakistan

The independent contractor payment schedule is defined by the payment terms and rights in Pakistan.

find your workspace

Salary to foreign employees in India is given in the Pakistani rupee. The independent contractor payment schedule is defined by the payment terms and rights in Pakistan. The average Pakistani independent contractor salary is PKR 2,227,336 per annum and PKR 1071 per hour. Paying independent contractors hourly in Pakistan has gained immense significance because a higher lot of software developers and foreign workers work remotely from the country. They usually use the English language for dealings rather than their native language Urdu.

The paying contractor pays to the workers working remotely from Pakistan by a US company tax occurs through various remittance services operating in the country. These companies charge a particular amount for paying 1099 employees and the independent contractor pays in Pakistan. Western Union, International Wire Transfer, International Money Transfer, Remitly, Xoom, and Bank transfers are some remittance services offered to pay employee cash legally in Pakistan. Payments to overseas contractors are sent on the US exchange rates i.e. 155.56 PKR. 

http://destined2reign.weebly.com/uploads/1/0/1/6/10162441/928074933.png

Salaries in Pakistan:

The average monthly salary in Pakistan is 81,800PKR. The average software developer salary in Pakistan is 512,775 per annum. Remittance services such as TransferWise, Remitly, Xoom, Payoneer, and IMT are available in both India and Pakistan. Many people working as independent contractors in Pakistan for US companies utilize these services. These services can also be used for getting paid by international clients.

Working and hiring foreign contractors of Pakistan:

Today, many people including software developers are working remotely from Pakistan. Hiring an independent contractor in Pakistan depends on the Provisions of Independent Contractor Agreement in Pakistan. A remote employee also provides Payments to Foreign Contractor for Services Form. An Independent contractor agreement sample contains information of contractor and client particulars, services, payment, and due date. Pakistanis can also work on US payroll if they have a US-based visa which includes bonuses, salaries, and deductions.

https://spiked.co.zw/wp-content/uploads/EcoCash-launches-remittance-service.jpg

Income taxes for Pakistani remote workers:

Employees working remotely from Pakistan have to file and pay income taxes of states where the employee lives. Taxes are not higher for foreign contractors because when an employee files an annual return you have to make estimated quarterly tax payments. However, paying independent contractors in cash in Pakistan is not illegal in Pakistan but it is usually done to avoid payroll and income taxes.

Following are some important remittance services currently operational in Pakistan:

Western Union

Western Union services are trustworthy and are available in over 200 states of the world. The company’s website provides opportunities for reporting a security bug and fraud awareness. The company has 150 million digital and retail customers all over the world. The company delivers contractor pays and helps in paying freelancers of Pakistan through its convenient WU app, in person at various locations, and over the phone. The payments to foreign contractors for services are received in the local currency. Price Estimator Tool of Western Union helps to calculate remittance fees. Foreign contractor salaries can be received in minutes to days through Western Union. The company charges USD 2.72 for making transactions in Pakistan.

https://marketsharegroup.com/wp-content/uploads/2020/05/Online-Money-Transfer.jpg

RIA:

Freelancers and foreign contractors are also getting their salaries from foreign companies using RIA. RIA is considered one of the largest remittance services that operate in almost 150 countries including Pakistan. RIA is easy to use and provides free transfers through banks. The contractor pays are delivered in almost 3 days with good customer service. However, the security check process of RIA is an extensive procedure. Due to this RIA is not recommended for fast transfers of Pakistan contractor pays.

Remitly:

Remitly is one of the best methods to transfer Pakistani contractor pays and paying 1099 employees because it offers instant deliveries in the recipient’s mobile wallet (Express Transfer). Remitly delivers foreign independent contractor pays over $1000 without a fee. Economy transfer service transfers contractor pays within 3-5 days. The fee for transfers below $1000 is $3.99 and a 3% remittance fee is charged on card payments.

Xoom:

Xoom by PayPal is another best remittance service that is operational in Pakistan. Xoom offers fast money transfers without a fee. The process of signing in and paying contractor salaries is convenient if compared to other remittance services. Xoom also provides free transfers over $1000 if banks are used as the sending contractor pays. Remittance charges are locked in the exchange rates. The maximum limit of sending money is $10,000. The company’s application helps to track the contractor payments and freelancer salaries. A $20 gift card is given to the referrals as well. However, complaints of delays and cancellations of the payments have also been observed.

International Money Transfer:

IMT is also an affordable option for paying employee cash legally in Pakistan. It is a secure method of paying wages to overseas employees in Pakistan. Online transfers are easily made 24/7 for transferring contractor pays swiftly and timely through IMT. Transfer can occur without a fee and at very low rates depending on the region from where freelancer payments are sent. However, a mark-up is made on the exchange rates through which they earn money. For example, a 0.4-2.5% mark-up is added if transfer rates range from $8-$50

http://www.philippinesplus.com/wp-content/uploads/2013/08/BDO-Remittance-Services.jpg

Wise International Payments:

Wise International Payment is another best way to send contractor pays to Pakistan. It provides high limits of $1000,000 in a single transaction and offers low costs. Bulk payment options are also available and the transactions are usually made online. Furthermore, exchange rates are real and the amount can also be received in the local currency i.e. Pakistani rupee. However, the one-time verification process can take up to several days.

Payoneer:

Salaries can be paid to employees in Pakistan using Payoneer. Funds withdrawal from payoneer can be done through Payonner card from various banks. The transactions can be made in 0-3 days from payoneer. Payoneer charges $3 as an average transfer fee. Payments can be sent through Mastercard which has a daily limit of $25,00. Also, an average of 1% is charged in foreign exchange rates by Payoneer.

https://international-adviser.com/wp-content/uploads/sites/3/2020/08/Money-transfer.jpg

International Bank Transfer:

Foreign contractors can also be paid through bank transfers. However, a hefty fee of the banks limits their use. About $30 is charged to make a transaction and up to 5% margin is also charged at the interbank rate. This depends on the amount you are transferring. The transfer can be done quickly in 1-5 working days.


If you have enough space at home, it is better to convert it into a separate work space. So the very first thing for you to work remotely is to find a workspace that is dedicated for you to work instead of sitting in the living room or bedroom. Find the best place at home that can serve as your work setup. Some workers that are new to remote work often struggle with the kids, pets, roommates, and some distractions at home.

To mitigate these challenges, the best way is to find a dedicated place for yourself where you could easily balance your work life and entertainment life. It is also important to focus on your core tasks and not end up giving extra time to complete them at the end of the day.

Try to avoid deciding on a workplace where people often walk around and congregate in the TV area and kitchen. One of the home office setup ideas is that you find a peaceful place where you have less distractions and sufficient privacy to attend your zoom meetings and calls without any background noise. Doesn't matter even if you have a very small space, you can even have the best desk setup for two monitors for you that increases your work productivity and isolation to focus.

Lighting that Increases your Work Productivity

It is always important to focus on the lighting of the room you are working in. You are supposed to spend some 8 to 9 hours in one light and that should be comfortable for your eyes and mind. Natural light is the best option to have when you are working from home. When it comes to increasing productivity at work, natural light helps you decrease drowsiness. If you don't have access to natural light, you can set your desk light to a natural one. This is your responsibility to have the best home office setup for productivity.

Keep Your
Workspace Clean
and Organized

Your workplace productivity is often affected due to the cluttered desk. One of the important things to remember to have the best desk setup for home office
is that the more organized your setup is, the more your work productivity will be.

When the desk is cluttered, it becomes very difficult to find the things and arrange them when you need them. And it becomes very difficult to have them when you need them immediately and you look here and there to get them, but it tends to waste so much of your time. To avoid this inconvenience, it is always better to organize your desk before you get started on the work.

It is one of the best tips to work from home.

A neat and clean workspace always motivates you to work without any distraction and makes access easy to each and everything that is present and
is actually required to be on your desk.

When a workspace is clean, it also helps you reduce anxiety and stress. It is therefore important to know how you can arrange your desk and declutter your workspace. The very first thing is that you reduce the use of paper. And instead of physical material like papers, you can use high-end home office productivity tools, such as Evernote or Google Drive, etc, to keep all your notes organized, as well as saved on the drive.

You can access the documents with one click. For this, you do not need to run here or there or waste your time finding the document you want immediately. All the documents whether it would be a Word file, a Google sheet, a spreadsheet, or any folder, you can easily access on your computer and make edits without any delay. This saves much of your time, as well as keeps your workspace neat and clean.

Secondly, always keep the things you need regularly while working. The stuff such as your mouse, your charger, your mobile phone, notepads, and headphones, etc. could be kept organized on your desk.

Colors and Greenery

Colors always play a vital role in freshening your mood. Similarly, when it comes to your work productivity, it is very important that you have the colors around you that could impact your mood and work productivity. Surround yourself with the greens and blues that could help you increase your productivity and help you work peacefully. We are always motivated towards work when the stuff around us calms us. It actually has a major role in giving you more hands at work. So make sure that your workspace is giving you the good vibes that can actually help you to work happily in a remote environment.

Place some green plants around your desk or table, put some photo frames and colorful pieces of art that you have made. Choose the best home office layout for productivity and make a setup in your house that serves the purpose of ultimate work culture and vibe. It will not only help you focus on core activities and tasks but also motivate the team members with your energy level. Make your work from home more exciting and productive with these simple yet affordable ideas.

Drink Plenty of Water

While working remotely, you are constantly sitting in one place and so it is important to keep yourself very hydrated. Even mild dehydration can affect your work. In men, it results in a decrease in cognitive performance whereas, in women, it degrades your mood. So make sure to java a water bottle with you all the time you are working and drink it often.

You have to find a bottle in which your water remains hot or cool accordingly and you do not have to visit the kitchen again and again to have it. Put one big bottle on your table to use throughout the day. You can also add some fruits or vegetables to it to make it a refreshing drink for yourself.

Focus on your Ergonomics

Remote workers usually spend more time and work for longer hours. Amid so, at least 6 to 9 hours are spent every day. During excessive work and sitting, it is important to focus on your ergonomics as well. Sitting for hours on a desk and table can affect the muscles of your back, neck, and shoulders so make sure that you keep yourself physically fit during remote work.

It is important for you to have a suitable setup. Choose the best chair and table for yourself where you are supposed to spend a significant amount of time on a daily basis. Choose a chair that has solid lumbar support and the desk is also according to your height. Your chair should be adjustable in height so that you could balance it according to your desk height.

Adjust your mouse and laptop in such a way that you could naturally see forward. Your neck should not bend while working, sit straight to keep your back straight all the time. You can go and choose the best work from home essentials. Not only this, you need to have some home office productivity tools that could help you work seamlessly and automatically in certain activities.

This article gives an answer to a very common question, how to make home office more productive? So set up a home office for remote work now by following the given guidelines.