Source:
CIA - The world factbook
; UN - United Nations
; World Bank
Note: (e) Estimated data
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.
Cost of labor
Minimum wage
The federal law defines minimum wages for unskilled workers only, which is currently PRs 2,500 per month. The government keeps on revising it from time to time.
Average wage
It was PKR 3,000 per month for unskilled workers..
Social contributions
Social security contributions paid by employers:
Governed by Employees social security ordinance of 1965.
Employer’s contribution: PKR 210 for an employee drawing upto PKR 5,000 per month. The workers once covered under this scheme remain secured even if their wages exceed Rs. 5,000/- per month.
Social security contributions paid by employees:
Governed by Employees social security ordinance of 1965.
Employee’s contribution: PKR 20 per month.
Social partners
Social dialogue and involvement of social partners
The labor relations in Pakistan are controlled by the Industrial Relations Ordinance of 2002 gives industrial workers the right to form trade unions and bargain. However the union organizers are generally subjected to a variety of restrictions that hinder their activities and effectiveness.
Moreover 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 Act is not applied very frequently.
The government of Pakistan has ratified 34 ILO conventions relating to human rights, workers' rights and working conditions.
