Overtime is one of the most commonly denied worker rights in Pakistan - and one of the clearest in law. If you stay back to finish a shift, hit a deadline, or cover a stock take, the extra hours are not a favour to your employer; they carry a statutory price. This guide sets out the exact overtime rate, the legal hour limits, how the hourly figure is worked out, and the practical steps to recover unpaid overtime through the provincial Labour Department or a Labour Court.
The overtime rate: double pay
The core rule is simple and generous by regional standards. Under Section 47 of the Factories Act 1934, and mirrored in the West Pakistan Shops and Establishments Ordinance 1969, a worker who works beyond the normal limits is entitled to overtime pay at twice the rate of their ordinary wage. There is no single-time or time-and-a-half tier as in some countries - Pakistan goes straight to 200%.
Overtime in Pakistan is paid at double the ordinary rate - not time-and-a-half. Any agreement, contract clause or company policy that pays less than this is unenforceable, because it falls below the statutory minimum.
Normal hours and the legal ceilings
Overtime only starts once you cross the normal working-hour threshold. The limits differ slightly between factories and shops/commercial establishments, but the trigger points are the same: 9 hours a day and 48 hours a week.
| Limit | Factory (Factories Act 1934) | Shop / establishment (1969 Ordinance) |
|---|---|---|
| Normal daily hours | 9 hours | 9 hours |
| Normal weekly hours | 48 hours | 48 hours |
| Overtime trigger | Beyond 9/day or 48/week | Beyond 9/day or 48/week |
| Overtime rate | 2x ordinary rate | 2x ordinary rate |
| Maximum with overtime | 60 hours/week | Extra hours allowed for defined tasks |
| Annual overtime cap | Roughly 150 hours/quarter (varies) | Up to 624 hours/year |
In a factory, no adult worker may be kept for more than 60 hours in any week once overtime is included - which effectively caps overtime at about 12 hours weekly. Exact quarterly and annual ceilings and any exemptions vary by province after the 18th Amendment devolved labour law, so confirm the position for your province.
How to calculate your overtime pay
The first step is your ordinary hourly rate. Labour departments commonly use this formula:
| Step | Calculation |
|---|---|
| 1. Annualise wage | Gross monthly wage × 12 |
| 2. Weekly wage | ÷ 52 weeks |
| 3. Ordinary hourly rate | ÷ 48 hours |
| 4. Overtime hourly rate | Ordinary hourly rate × 2 |
Worked example. A worker on a gross monthly wage of PKR 40,000: 40,000 × 12 = 480,000 a year; ÷ 52 = about PKR 9,231 a week; ÷ 48 = about PKR 192 per ordinary hour. The overtime rate is double that - roughly PKR 385 per overtime hour. Ten overtime hours in a week would add about PKR 3,850 to the pay packet.
Note that gross wage for this purpose usually includes regular allowances, not just basic pay. If your employer calculates overtime on basic salary alone, that may understate what you are owed - a point worth checking against your employment contract and payslips.
Who is covered - and who is not
Coverage depends on which law applies to your workplace:
- Factories Act 1934 - applies to factories where 10 or more workers are (or were) employed and a manufacturing process is carried on.
- Shops and Establishments Ordinance 1969 - applies to shops and commercial establishments regardless of the number of workers, so small offices and retail outlets are covered.
- Standing Orders (Industrial and Commercial Employment Ordinance 1968) - governs terms of employment in industrial and commercial establishments with 20 or more workers, reinforcing recorded working conditions.
Managerial and supervisory staff, and certain confidential or field roles, are often treated differently and may fall outside standard overtime entitlement. Genuine contract and daily-wage workers doing regular hours generally remain protected - misclassification does not remove the right to overtime.
Enforcement: what to do when overtime is unpaid
The double rate is worthless if it is not paid, and unpaid overtime is a frequent complaint. Two routes exist, and you can use both:
- Provincial Labour Department Inspector. Inspectors appointed under the Factories Act and the 1969 Ordinance can inspect attendance and wage records, order payment, and prosecute employers who breach the hour and overtime rules. File a written complaint with your district Labour Office.
- Labour Court under the Industrial Relations Act 2012. An individual grievance over unpaid wages or overtime can be raised as a grievance notice to the employer, then referred to a Labour Court if unresolved. See our guide to the labour court grievance procedure.
Evidence wins these cases. Keep your own record of hours worked, save payslips, and retain any WhatsApp or email instruction to stay late - digital messages are admissible in Pakistani courts. Employers are legally bound to maintain accurate attendance and wage registers, which the Inspector can demand.
Overtime within your wider rights
Overtime sits alongside other statutory entitlements - minimum wage, paid leave, and gratuity - none of which can be signed away below the legal floor. If overtime disputes are part of a bigger pattern of unpaid dues or wrongful termination, it is worth taking the whole matter to a lawyer at once rather than piecemeal.
Frequently asked questions
What is the overtime rate in Pakistan?
Double the ordinary rate - 200% of normal hourly pay - for work beyond 9 hours a day or 48 hours a week, under the Factories Act 1934 and the 1969 Shops Ordinance.
How many hours can I work in a week?
Normal hours are 48 a week. In a factory, total hours including overtime must not exceed 60 in any week.
Is overtime paid on basic salary or gross wage?
The hourly rate is usually calculated on gross wage including regular allowances, not basic pay alone. Check your payslip against the formula.
Can my employer force me to do overtime?
Overtime is generally voluntary and must stay within legal ceilings. Forced excessive hours or unpaid overtime can be challenged before the Labour Department or a Labour Court.
What if my employer refuses to pay?
File a complaint with the provincial Labour Department Inspector or raise a grievance under the Industrial Relations Act 2012. Keep attendance records and payslips as evidence.