Pakistan has no single national leave code. Instead, leave entitlement is set by a patchwork of statutes - chiefly the Factories Act 1934, the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, and provincial Shops and Establishments laws - each adapted differently across Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad. This guide sets out the statutory minimums for annual, casual and sick leave, explains encashment and carry-forward, and flags where the provinces diverge. If your employer offers less, they are likely breaking the law.
Statutory leave entitlements at a glance
These are the core statutory minimums for a permanent worker under the Factories Act 1934 as adopted by the provinces. An employer may always grant more, but not less:
| Leave type | Days per year | Pay | Governing basis |
|---|---|---|---|
| Annual (privilege) leave | 14 consecutive days | Full pay | Factories Act 1934 s.49; provincial Shops laws |
| Casual leave | 10 days | Full pay | Factories Act / provincial adaptation |
| Sick leave | 16 days | Half average pay | Factories Act / provincial adaptation |
| Festival / gazetted holidays | Per provincial notification | Full pay | Provincial holiday notifications |
| Maternity leave | 12 to 26 weeks | Full pay | Maternity Act 2020; provincial acts |
Eligibility for annual leave usually requires 12 months of continuous service. Casual and sick leave typically begin from the start of employment, subject to the establishment's service rules.
Annual leave: earning it and taking it
Annual leave - sometimes called privilege or earned leave - is the backbone of statutory rest in Pakistan. Under section 49 of the Factories Act 1934, every worker (excluding purely temporary and contract workers) who has completed 12 months of continuous service is entitled to 14 consecutive days of leave with full pay in the subsequent 12-month period.
The leave is intended to be taken as a block, though many employers allow it to be split. If you fall sick during annual leave, that period can often be reclassified as sick leave so your earned days are not wasted. Workers in shops and commercial establishments enjoy comparable annual leave under provincial Shops and Establishments laws, discussed below.
Casual and sick leave
These are the two short-notice leaves most employees rely on day to day:
- Casual leave - 10 days, full pay. Meant for urgent, unforeseen personal matters: a family emergency, a bereavement, or an unexpected obligation. It cannot usually be combined with annual leave and is not meant to be planned far in advance.
- Sick leave - 16 days, half average pay. Available on medical grounds, generally supported by a medical certificate. It is paid at half the average wage under the Factories Act model, though public-sector and better employers frequently pay full salary.
Both casual and sick leave are non-cumulative in most establishments - unused days lapse at the end of the year rather than carrying over. Only annual leave attracts accumulation and encashment rights.
Encashment and carry-forward
This is where the law rewards workers who do not burn through their leave - but the rules depend on which statute covers you:
| Rule | Factories Act 1934 | Shops & Establishments laws |
|---|---|---|
| Annual leave carry-forward | Up to 14 days (max ~28) | Accumulate up to ~30 days |
| Annual leave encashment in service | Limited | Allowed on request |
| Annual leave encashment on separation | Yes - paid out | Yes - paid out |
| Casual / sick leave encashment | No | No |
In short: unused annual leave is money you have not yet collected. Under the Factories Act it is typically encashed when you leave the job; under the provincial Shops ordinances you can request encashment of accumulated leave even while still employed. Casual and sick leave carry no cash value. Factor untaken annual leave into your final settlement on resignation so you are not short-changed.
Provincial variations
Since the 18th Amendment devolved labour to the provinces, entitlements now differ by where you work. Shops, offices and commercial establishments are governed by provincial Shops and Establishments legislation rather than the Factories Act:
| Jurisdiction | Governing statute (shops/offices) | Maternity leave |
|---|---|---|
| Punjab | Punjab Shops & Establishments Ordinance 1969 | ~12 weeks |
| Sindh | Sindh Shops & Commercial Establishments Act 2015 | 16 weeks |
| Khyber Pakhtunkhwa | KP Shops & Establishments Act 2015 | ~12 weeks |
| Balochistan | Provincial Shops & Establishments law | ~12 weeks |
| Islamabad / Federal | Factories Act; Maternity & Paternity Leave Act 2020 | Up to 180 days |
The Maternity and Paternity Leave Act 2020 (for the federal capital and federally regulated employers) is the most generous: 180 days fully paid for the first child, 120 for the second and 90 for the third, plus 30 days paternity leave for fathers. Sindh grants 16 weeks under the Sindh Maternity Benefit Act 2018, while Punjab, KP and Balochistan sit at around 12 weeks. Employers who deny statutory maternity leave can face fines up to PKR 100,000 and, in some cases, imprisonment. See our dedicated maternity leave guide for the full breakdown.
When your employer denies leave
Statutory leave is a legal right, not a favour. If an employer refuses lawful leave, docks pay wrongly, or withholds encashment on exit, that is a grievance you can pursue. The first step is a written grievance to the employer under the Standing Orders Ordinance 1968; if unresolved, a worker may approach the Labour Court or the NIRC through the grievance procedure. Keep your appointment letter, salary slips and any leave applications - documentary evidence decides these cases.
Because thresholds, penalties and exact day-counts vary by province and by the type of establishment, confirm your specific entitlement before acting. Our employment and labour law team can review your contract and service rules against the governing statute.
Frequently asked questions
How many annual leaves am I entitled to in Pakistan?
After 12 months of continuous service, 14 consecutive days of paid annual leave under the Factories Act 1934 and comparable provincial Shops laws.
How many casual and sick leaves per year?
Generally 10 days casual leave on full pay and 16 days sick leave on half average pay, subject to province and establishment type.
Can I encash unused leave?
Annual leave yes - on separation under the Factories Act, and on request under provincial Shops laws. Casual and sick leave are not encashable.
Does unused leave carry forward?
Annual leave accumulates (up to 14 days under the Factories Act, up to ~30 under Shops laws). Casual and sick leave usually lapse each year.
What if my employer refuses my leave?
File a written grievance under the Standing Orders Ordinance 1968; if unresolved, approach the Labour Court or NIRC. Keep all documentation.