Labour law in Pakistan can feel like a maze because it is not one code but dozens of overlapping laws, split between the federal government and four provinces. This overview cuts through the confusion. It sets out the key statutes, the rights they give ordinary workers, and the practical steps to enforce them. If your own situation is disputed, our employment and labour law team can advise on the exact provincial rules that apply to you.
How the 18th Amendment reshaped labour law
Before 2010, most labour legislation was federal. The 18th Constitutional Amendment abolished the Concurrent List and made labour a provincial subject. Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan each began enacting their own industrial relations, standing orders and welfare laws, and adapting older federal statutes. A few matters stayed federal - notably the EOBI pension scheme and disputes that cross provincial boundaries or sit in the Islamabad Capital Territory. The practical result: the law that governs your job depends on the province where you work.
The key statutes at a glance
These are the laws that do most of the heavy lifting in Pakistani employment relationships:
| Statute | What it governs |
|---|---|
| Industrial & Commercial Employment (Standing Orders) Ordinance 1968 | Terms of service, appointment letters, classification of workers, termination and gratuity (establishments of 20+ workers). Sindh replaced it with the Terms of Employment (Standing Orders) Act 2015. |
| Industrial Relations Act 2012 (and provincial IR Acts) | Trade unions, collective bargaining, strikes and dispute resolution. Federal IRA 2012 covers trans-provincial and ICT establishments; provinces have their own IR Acts. |
| Factories Act 1934 / Shops & Establishments Ordinances | Working hours, weekly rest, annual and casual leave, health and safety. |
| EOBI Act 1976 | Federal old-age, invalidity and survivors' pension for formal-sector workers. |
| Provincial Employees Social Security Ordinances | Medical care, injury compensation and maternity benefit for registered workers. |
| Protection Against Harassment of Women at Workplace Act 2010 (amended 2022) | Anti-harassment duties, inquiry committees and the FOSPAH ombudsman. |
Core worker rights and entitlements
Whatever province you are in, the baseline protections below are broadly consistent. Figures are indicative national benchmarks - the binding numbers come from your provincial notification and your appointment letter.
| Entitlement | Typical standard |
|---|---|
| Minimum wage | Around PKR 37,000/month for unskilled workers; set yearly by each provincial Minimum Wage Board (varies by province). |
| Working hours | 8-9 hours/day, 48 hours/week, usually over six days. |
| Overtime | 2x the ordinary wage for hours beyond the daily/weekly limit under the Factories Act. |
| Annual leave | 14 days of paid leave after 12 months of continuous service. |
| Casual & sick leave | Around 10 days casual and up to 16 days sick leave with pay per year. |
| Gratuity | 30 days' wages for each completed year of service (where no provident fund applies). |
| EOBI pension | Employer registers workers and contributes; pension payable on qualifying old age. |
Get it in writing. Under the Standing Orders, a worker who has served the qualifying period is entitled to a formal appointment letter stating their terms. If you have never received one, that is itself a breach - and a red flag. See our employment contract guide.
Wages, working hours and overtime
The minimum wage is not a single national figure. Each province notifies its own rate each year, and skilled categories are set higher. The standard working week is capped at 48 hours; anything beyond the daily or weekly ceiling is overtime, paid at twice the ordinary rate under the Factories Act, subject to yearly overtime limits. Employers who pay flat salaries and expect unlimited hours are on the wrong side of the law. Our detailed breakdowns cover the current minimum wage and overtime rules province by province.
Leave, EOBI and end-of-service benefits
Beyond wages, Pakistani law builds in a social safety net. Registered workers accrue paid annual, casual and sick leave. The EOBI scheme provides a federal pension funded by employer and employee contributions, while provincial social security institutions cover medical treatment and injury compensation. On leaving service, eligible workers receive gratuity - typically 30 days' wages per year served. Maternity protection is guaranteed too, though the exact duration differs between the provincial social security laws and the federal Maternity and Paternity Leave Act; see our maternity leave guide for what applies to you.
Harassment and workplace safety
The Protection Against Harassment of Women at Workplace Act 2010, significantly widened by the 2022 amendment, requires organisations to maintain an inquiry committee and a code of conduct. The amendment broadened the definitions of "workplace" and "employee" to cover freelancers, domestic workers, students and informal settings, and expanded harassment to include gender-based discrimination and a hostile work environment. Complaints can go to the internal committee or directly to the Federal Ombudsman (FOSPAH). Read our dedicated guide to the Harassment Act.
Enforcing your rights: the forums
Knowing your rights is only half the battle - the other half is choosing the correct forum:
| Type of dispute | Where it goes |
|---|---|
| Wrongful termination, unpaid wages, gratuity, individual grievance | Labour Court / provincial labour department |
| Trade union, collective bargaining, trans-provincial matters | National Industrial Relations Commission (NIRC) |
| Workplace harassment | Inquiry committee, then FOSPAH ombudsman |
| Pension and contribution disputes | EOBI adjudicating authority |
Most individual claims begin with a written grievance to the employer, then move to the Labour Court if unresolved. For how that process actually unfolds, see our guides to the labour court grievance procedure and labour courts and the NIRC. If you are facing dismissal, our note on termination of employment explains lawful notice and settlement.
Frequently asked questions
Are labour laws federal or provincial?
Mainly provincial since the 18th Amendment in 2010. EOBI pensions and trans-provincial or ICT disputes remain federal.
What is the current minimum wage?
Around PKR 37,000/month for unskilled workers, but each province fixes its own rate annually - always check the latest provincial notification.
How is overtime paid?
At twice the ordinary rate for hours worked beyond the daily or weekly limit under the Factories Act.
Am I entitled to gratuity?
Generally yes where no provident fund exists - about 30 days' wages for each completed year of service.
Where do I complain about my employer?
Wage and termination disputes go to the Labour Court; union matters to the NIRC; harassment to your inquiry committee or FOSPAH.