Managing employee rights and benefits is one of the most sensitive areas of HR. Missing a single compliance requirement can expose employers to legal claims, penalties, and reputation loss. To avoid this, every HR professional and employer must clearly understand the mandatory worker facilities and benefits under Pakistani labor laws.
In this guide, you’ll learn:
What labor laws apply to worker benefits in Pakistan
Minimum employee thresholds for each benefit
Key facilities (bonus, insurance, gratuity, provident fund, overtime, medical checkups, leaves, daycare, etc.)
Eligibility rules and salary limits
Step-by-step compliance framework aligned with labor laws
Key mistakes HR often makes in applying these benefits
Future outlook: Punjab Labor Code 2024 (planned consolidation of all laws)
We’ve also included ready-to-use references and figures, so you don’t have to dig through multiple notifications or acts.
Bonus – Mandatory where companies declare profit (u/s 10-C Standing Orders Amendment Act 2012).
Compulsory Group Insurance – For establishments with 50+ employees (minimum Rs. 500,000 coverage per worker).
Gratuity & Provident Fund – Applicable for 10+ workers, tied to last drawn salary and employer contribution.
Medical Checkups – Twice a year under Factories Act 1934.
Overtime – Double rate plus compensatory leave for weekends or gazetted holidays.
Leaves – Casual, medical, annual, maternity, paternity, Hajj, and iddat leaves as per law.
Minimum Wage – Rs. 40,000/month for unskilled workers w.e.f. July 2025.
EOBI & PESSI – Social security, pensions, funeral expenses, survivor benefits.
Marriage & Death Grants – Rs. 400,000 (marriage grant), Rs. 800,000 (death grant).
Daycare Facilities – Mandatory where 25 or more female workers are employed.
For HR, labor compliance is not just a legal formality, it protects employees’ rights and builds trust. Employers who comply avoid legal challenges and foster a positive workplace culture.
Get the complete Schedule of Important Labor Laws (with figures, eligibility, and references), prepared by Amjad Bhatti (HR & IR Consultant and Trainer). This resource includes all updates up to 15th September 2025.
Author: Amjad Bhatti (HR & IR Consultant and Trainer)
📞 0300 946 8738 | 0305 2808020
📧 info@abbhrhub.com
#LaborLawsPakistan #HRCompliance #WorkerBenefits #HRPolicies #EmployeeRights #StandingOrders #FactoriesAct #EOBI #PESSI #HRPakistan #WorkplaceCompliance #EmployerGuide
If you want to learn about domestic inquiry, read this article
ABB HR Hub provides HR services, labor law advisory, business consulting, IT support, and corporate training in Pakistan. Trusted by leading organizations.
© Copyright ABB HR HUB 2025 All Rights Reserved.
Managed By @OKRAZAALI