Pakistan flag Pakistan: Operating a Business in Pakistan

Work conditions in Pakistan

The Active Population in Figures

201820192020
Labour Force 72,039,85173,855,15372,334,842

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 54.64%54.43%54.50%
Men activity rate 84.37%84.69%84.79%
Women activity rate 23.42%22.62%22.63%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration

48 hours, 54 hours for seasonal factories.

This applies only to factories/offices employing ten or more workers.

Retirement Age
60 years
Working Contracts

Employment contract (also called Appointment letter) is regulated by Industrial and Commercial Employment Ordinance of 1968 Every employer in an industrial or commercial establishment (with more than 20 workers) is required to issue a formal appointment letter at the time of employment of each worker. The appointment letter should necessarily mention the main terms and conditions of employment, namely nature and tenure of appointment, pay allowances and other benefits.

There are specific rules for termination of an employee. Terminating an employee is not always so easy.

Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
In 2020, the government increased the minimum wage to PKR 17,500 per month.
Average Wage
In 2018, the average hourly gross wage was PKR 90 according to the ILO (latest available data).
Social Contributions
Social Security Contributions Paid By Employers: 6% of covered earnings (7% of earnings up to Rs. 5,000 in Balochistan province) + 5% for pension each month.
Social Security Contributions Paid By Employees: 1% of covered earnings for pension + Rs. 40 for healthcare each month. 

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Social Partners

Social Dialogue and Involvement of Social Partners
The labour relations in Pakistan are controlled by the Industrial Relations Ordinance of 2002 gives industrial workers the right to form trade unions and bargain.
The country’s petroleum sector is subject to the Essential Services Maintenance Act. The Act bans strikes, limits workers’ rights to change employment, and affords little recourse to a fired worker, but allows collective bargaining. However, this legislation is not applied very frequently.

The government of Pakistan has ratified 34 ILO conventions relating to human rights, workers' rights and working conditions.
Unions
Pakistan Workers Federation
All Pakistan Trade Union Congress
Unionisation Rate

10% in industrial labor force.

5% in total labor force.
Labour Regulation Bodies
Pakistan Manpower Institute
Ministry of Overseas Pakistanis and Human Resource Development

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Latest Update: November 2022

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