Q. What is the legal minimum wage in Pakistan under labour law?
The federal minimum wage for unskilled adult workers in Pakistan is currently PKR 37,000 per month. The federal government periodically reviews this rate to account for inflation and the cost of living. Employers are legally required to comply with this wage floor when hiring workers.
Q. Does the minimum wage vary by province or job type in Pakistan?
Yes, the minimum wage in Pakistan varies both by province and, within each province, by job type and industry. While the federal government announces a base rate, provinces like Punjab or Sindh may set higher wages. However, within each province, the rate is usually the same for all unskilled labor.
Q. How often must employees be paid under Pakistan labor law, and is there a legal deadline?
Employees must be paid at least once every month under the Payment of Wages Act. Wages must be disbursed within 7 days after the wage period ends for companies with under 1,000 workers, and within 10 days for larger companies. Delays beyond these limits are considered wage violations.
Q. Are employers required to issue payslips in Pakistan, and what must they include?
Yes, employers are legally required to provide employees with written or electronic payslips. These must clearly mention gross salary, overtime, allowances, deductions, taxes, and net pay. Issuing a payslip helps ensure transparency and serves as a key record in case of disputes.
Q. What are the legally accepted methods of wage payment under Pakistan labor law?
Wages can be paid through cash, bank transfer, or cheque as long as the method is documented. Most companies now prefer bank transfers for transparency and audit purposes. Paying through undocumented or informal means is discouraged and may not comply with legal standards.
Q. What types of salary deductions are allowed under labor laws in Pakistan?
Under Pakistani Labor Law, Employers may deduct for taxes, social security (EOBI/SESSI), provident fund, fines for misconduct, or repayment of loans/advances. However, deductions must be reasonable and authorized by law or contract. Arbitrary or unauthorized deductions are illegal and punishable under labor law.
Q. Can employers deduct wages for lateness or misconduct under Pakistan labor law?
Yes, but there are restrictions. Deductions for misconduct like lateness or negligence must follow due process, and the employee should be notified. The total deduction cannot exceed the legally allowed percentage of the wage, and repeated penalties require formal inquiry.
Q. Do part-time and piece-rate workers have the same wage protections in Pakistan?
Yes, part-time and piece-rate workers are also covered by minimum wage laws. Their pay must be calculated to ensure it is not less than the minimum wage when measured by output or hours. They are also entitled to fair treatment in terms of wage deductions and timely payments.
Q. Is equal pay for equal work a legal requirement under Pakistan labour law?
Yes, equal pay for equal work is legally mandated regardless of gender. Men and women performing the same work under similar conditions must receive equal wages. Pakistan enforces this through its commitment to International Labor Organization (ILO) conventions and national anti-discrimination labor policies.
Q. Can an employer reduce an employee’s salary in Pakistan, and what is the legal process?
An employer cannot reduce an employee’s salary without valid reason or written consent. Any reduction must be justified by legal grounds like disciplinary action, restructuring, or demotion — and even then, proper procedure must be followed. The salary must never drop below the legal minimum wage.
Q. Are bonuses or annual pay raises mandatory under labor law in Pakistan?
Bonuses and raises are not mandatory unless specified in employment contracts or company policy. However, certain companies governed by the Workers’ Profit Participation Act must distribute a share of profits as bonus. Outside of that, bonuses and increments are at the employer’s discretion.
