Understanding employment laws in Pakistan is essential for every worker. Whether you are a permanent employee, a probationary worker, or on a temporary contract, you have legal rights that your employer must respect. This guide from Roziwala explains the key employment laws in Pakistan, including contract types, minimum wage, working hours, overtime, leave entitlements, and termination procedures [citation:3][citation:7].
## Types of Employment Contracts in Pakistan
Pakistani law recognizes six categories of employment, each with different protections [citation:3]:
### Permanent Employment
The default contract type after probation ends. You have to extend full statutory employment rights, including notice period, gratuity eligibility, and social security coverage [citation:3].
### Probationary Employment
You may treat it as a trial window. However, there is no statutory obligation. Either side can walk away during this period, though it is recommended to give 7-15 days notice as good practice [citation:3].
### Temporary / Fixed-Term Employment
Suitable for work lasting under nine months. The advantage is that fewer employee protections can be extended than in permanent roles [citation:3].
## Essential Contract Terms
Companies are legally required to issue written contracts [citation:3]. The contract should cover:
## Minimum Wage in Pakistan 2026
The federal minimum wage stands at PKR 37,000 per month. However, there could be provincial variations. You must pay whichever figure is higher — federal or provincial [citation:3].
## Working Hours in Pakistan
The maximum working hours in Pakistan are 48 hours across a 6-day week. Each shift can run 8-9 hours, with a mandatory 1-hour break for lunch and prayer [citation:3].
### Overtime Laws
Extra hours beyond the standard shift are paid at double the normal rate, on regular days and public holidays alike. There are hard limits [citation:3]:
## Mandatory Employee Benefits
### Social Security and Pensions
Employers must register with the Employees Old-Age Benefits Institution (EOBI) and the relevant provincial social security body. These funds cover old-age pensions, invalidity benefits, healthcare, maternity, and work injury compensation [citation:3].
### Leave Entitlements
Pakistan mandates several categories of paid leave [citation:3][citation:7]:
### Protected Periods
Termination is typically prohibited during maternity leave, sick leave, or any period when the employee is receiving injury benefits under provincial social security. Employers who violate this may face labor court proceedings and potential reinstatement orders [citation:3].
## Termination Laws in Pakistan
### Grounds for Dismissal
Valid scenarios for terminating employment contracts include [citation:3]:
### Notice Period
During probation, notice is not legally required. Once an employee becomes permanent, the law requires 30 to 60 days written notice from either side [citation:3].
### Severance Pay
In certain establishments, where a worker resigns or is dismissed for any reason other than misconduct, they are generally entitled to a gratuity equivalent to 30 days wages per year of service [citation:7].
### Dismissal for Misconduct
An employee dismissed for proven misconduct can be let go immediately, with no notice and no pay in lieu. The dismissal letter must state the specific grounds in writing [citation:3].
## Anti-Discrimination Laws
Detailed statutory provisions prohibiting discrimination in relation to employment are found mainly at the level of individual provinces. Disability discrimination is prohibited in all jurisdictions. Balochistan, Khyber Pakhtunkhwa, and Sindh ban discrimination on grounds such as sex, religion, caste, color, and ethnic background [citation:7].
All provinces provide for equal pay for work of equal value for female and male workers [citation:7].
## Harassment Protection
All employers must follow a Code of Conduct on protection from harassment, investigate complaints, and punish perpetrators. Harassment is defined as including discrimination on the basis of gender [citation:7].
## Frequently Asked Questions
### What is the minimum wage in Pakistan in 2026?
The federal minimum wage is PKR 37,000 per month. Provincial variations may apply, and you must pay whichever figure is higher [citation:3].
### How many leave days am I entitled to?
You are entitled to 14 days of earned leave after one year, 10 days of casual leave, 8 days of sick leave, and maternity/paternity leave as applicable [citation:3].
### Can my employer fire me without notice?
No, permanent employees are entitled to 30-60 days written notice. However, an employee dismissed for proven misconduct can be let go immediately [citation:3].
### Am I entitled to overtime pay?
Yes, overtime is paid at double the normal rate. Working hours cannot exceed 12 total hours in any day, 60 in a week, and 624 over a year [citation:3].
### What is the maximum working hours in Pakistan?
The maximum working hours are 48 hours across a 6-day week, with 8-9 hours per shift and a mandatory 1-hour break [citation:3].
## Useful Resources
## External References
https://www.payoneer.com
https://bsc.croneri.co.uk