How do Pakistan working time and leave rules work in 2026?

The rules come from the Factories Act, 1934 for industrial workers, and the West Pakistan Shops and Establishments Ordinance, 1969, for commercial establishments. Both statutes apply the same 48 hours weekly ceiling.

How the daily cap works

The 9 hours daily cap means a standard six-day week can spread 48 hours across six days. A five-day week has more headroom per day before hitting the weekly total. Overtime beyond these limits requires payment at enhanced rates and is subject to provincial overtime regulations.

Which workers are covered

The Factories Act applies to factories and industrial establishments. The Shops and Establishments Ordinance applies to offices, shops, and commercial premises. Most knowledge-economy roles hired by international employers fall under the Shops and Establishments framework.

No opt-out mechanism

Unlike the UK, Pakistan law does not permit workers to sign an individual opt-out from the weekly-hours cap. The limits are hard maximums. Occasional excess requires provincial labour department approval and additional pay.

The Factories Act requires at least one day of rest in every seven. In practice, Friday is the standard rest day for most of Pakistan's workforce. Some commercial establishments observe Sunday instead.

The law does not prescribe a minimum gap in hours between the end of one workday and the start of the next, unlike the EU minimum of 11 hours. The 9 hours daily ceiling provides an indirect boundary: a worker cannot be required to work longer than 9 hours in a single day.

The 14 days entitlement comes from Section 49-B of the Factories Act, 1934. The leave must be consecutive days unless the employer and worker agree otherwise.

Public holidays are separate

Pakistan public holidays are gazetted separately by the Cabinet Division. They do not count against the 14 days annual leave entitlement. A worker's annual leave and the 11 federal public holidays are both owed independently.

Carry-over and encashment

The Factories Act does not set an explicit carry-over limit for unused annual leave. In practice, many employers allow one year of carry-forward. Unused annual leave is typically encashed on termination. Contracts may specify more generous terms.

Part-time and pro-rata

Pakistan's leave framework was designed for full-time workers. Part-time entitlements are not defined by a national formula. Employers commonly apply a pro-rata calculation based on actual days worked, but this is contractual rather than mandated by statute.

1. Set the working-hours framework at onboarding

   Confirm whether the role falls under the Factories Act, 1934 or the West Pakistan Shops and Establishments Ordinance, 1969. Both apply the same 48-hour weekly cap and 9-hour daily cap. Document the applicable statute in the employment contract.

2. Establish the weekly rest day

   Designate one full rest day per seven-day week. Friday is the norm for most of Pakistan's workforce; some commercial establishments observe Sunday. Record the rest day in the contract and the working schedule.

3. Track annual leave accrual from the end of year one

   The statutory entitlement of 14 days vests after one completed year of continuous service. Begin tracking from day one so the balance is ready to apply at the 12-month mark. Public holidays are separate and do not reduce the annual leave entitlement.

4. Maintain the casual and sick leave pools separately

   Run two distinct leave buckets: 10 days of casual leave per year at full pay and 16 days of sick leave per year at half pay. Exhausting one pool does not top up the other. Sick leave requires a medical certificate; casual leave does not.

5. Apply parental leave rights under the correct legislative framework

   For federal employers, apply the Maternity and Paternity Leave Act, 2023: approximately 26 weeks of maternity leave for the first child and 30 days of paternity leave for the first three children. For private-sector roles, confirm the applicable provincial ordinance for the worker's location.

6. Encash unused annual leave at termination

   Unused annual leave that has vested is payable in cash on termination. Include it in the final-pay calculation alongside any other outstanding entitlements. The Factories Act does not set an explicit carry-over limit, but contracts may specify a cap.

The Cabinet Division publishes the official gazette notification each year. Individual provincial governments may declare additional optional holidays. The total above reflects the federal gazetted count of 11. The number of working days affected by Eid can extend to three per festival when including the preceding and following days.

Because Eid and other Islamic festivals follow the lunar calendar, employers planning rotas around Pakistan staff must allow for date uncertainty of one to two days in each direction depending on moon sighting confirmation.

Maternity leave

The Maternity and Paternity Leave Act, 2023 governs maternity leave for federal government employees and organisations subject to federal legislation. Maternity leave of approximately 25.71 weeks (around 180 days) is paid in full by the employer for the first child. The leave period reduces for subsequent children depending on the applicable legislation in force.

Eligibility for maternity leave requires a qualifying service period. Under the older West Pakistan Maternity Benefit Ordinance, 1958, a minimum of 4 months of continuous service was required before a worker could claim the benefit.

Paternity leave

Statutory paternity leave of 30 days applies to the first three children, fully paid. This right was introduced by the Maternity and Paternity Leave Act, 2020 and was among the first statutory paternity leave provisions in South Asia.

Application scope

These rights apply directly to federal government employees and organisations under federal jurisdiction. Private-sector employers are subject to provincial legislation, which varies. Punjab and Sindh have their own maternity benefit ordinances with differing leave durations. Employers hiring through Teamed should confirm the applicable provincial framework for their worker's location.

What competitive employers do

Most multinationals and larger Pakistani private-sector employers enhance statutory maternity leave pay and extend paternity leave beyond the federal minimum. Common practice in the technology sector includes full-pay maternity leave for up to six months and paternity leave of two to four weeks.

Pakistan's approach to sick pay is leave-based rather than a weekly payment. Workers receive two types of paid absence entitlement under the Factories Act, 1934:

• Casual leave: 10 days per year at full pay. Used for short absences, personal reasons, and minor illness.
• Sick leave: 16 days per year at half pay. Used for certified medical absence of longer duration.

Medical certification

Sick leave typically requires a medical certificate from a registered doctor. Casual leave does not require certification and is at the worker's discretion within the annual allowance.

What happens when leave runs out

Once casual and sick leave is exhausted, further absence may be treated as unpaid leave or, in more serious cases, may form part of a disciplinary process. Pakistan law does not provide a continuing entitlement to paid leave beyond the statutory days above.

What employers typically provide

Many professional employers enhance the statutory position. Common enhancements include additional sick leave days at full pay (rather than half pay) and private health insurance that covers treatment costs separately from the statutory leave entitlement.

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Key sources: Factories Act, 1934 and Standing Orders Ordinance, 1968, Maternity and Paternity Leave Act, 2023, and Cabinet Division Public Holidays Notification.