Leave Policy in Pakistan

Pakistan's leave framework spans several overlapping statutes: the Factories Act 1934, the West Pakistan Shops and Establishments Ordinance 1969, and the Maternity and Paternity Leave Act 2020. Provincial variation adds further complexity. Employers must track which law applies to each worker before setting leave entitlements.

The main leave categories are annual leave, sick leave, casual leave, maternity leave, paternity leave, public holidays, iddat leave, and pilgrimage leave. Each carries distinct eligibility rules and pay conditions.

• Annual leave: 14 days of paid leave after 12 months of consecutive service.
• Maternity leave: 180 days for the first birth, 120 days for the second, and 90 days for the third, under the Maternity and Paternity Leave Act 2020.
• Paternity leave: 30 days for each of the first three children.
• Sick leave: 8 to 20 days depending on the applicable provincial statute.
• Public holidays: approximately 14 to 16 days per year, with Islamic holidays subject to moon sighting confirmation.

Gloroots manages leave compliance for employers running payroll and employment in Pakistan, covering statutory entitlements, provincial rules, and accurate leave tracking under one governance layer.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Pakistan

Pakistan's leave framework rests on several statutes, each covering a distinct segment of the workforce. The primary laws are the Factories Act 1934, the West Pakistan Shops and Establishments Ordinance 1969, the Maternity and Paternity Leave Act 2020, and the Cabinet Division's annual public holiday notification.

These statutes set statutory minimums. Employers may offer more generous terms through contracts or company policy, but cannot fall below the legal floor. Provincial legislatures have also enacted variations, particularly around sick leave entitlements.

Pakistan's statutory leave framework covers the following categories:

• Annual leave (earned or privilege leave)
• Casual leave
• Sick or medical leave
• Maternity leave
• Paternity leave
• Public holidays
• Iddat leave
• Pilgrimage leave

Employers managing Pakistani workers through an employment arrangement should understand how does EOR work to ensure statutory compliance across each leave category.

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Annual Leave (Earned / Privilege Leave)

Annual leave entitlement in Pakistan arises only after an employee completes 12 months of continuous service. Workers covered under the Factories Act 1934 and the West Pakistan Shops and Establishments Ordinance 1969 are eligible.

Under the Factories Act 1934, employees are entitled to 14 calendar days of fully paid annual leave per year. This leave must be taken as a single continuous period and cannot be divided into smaller portions.

The Factories Act 1934 also imposes a specific advance pay requirement. Before annual leave begins, the employer must pay the employee 50% of their total vacation pay. This payment must be made prior to the leave commencing, not upon return.

• Accrual: Entitlement begins after 12 months of uninterrupted service.
• Leave period: Must be taken in one block; no splitting permitted under the Factories Act 1934.
• Advance pay: 50% of total vacation pay is due before leave starts.
• Encashment: Accrued but unused annual leave must be paid out on termination under the Factories Act 1934. Applicability under the Shops and Establishments Ordinance should be confirmed for each case.
• Scheduling: Employees must apply in advance. Employers may schedule leave to suit operational requirements.

Carry-over of up to 14 days of unused leave into the following vacation year is permitted. Employers should track accrual and encashment obligations carefully to avoid liability at the point of termination.

Public Holidays

Pakistan observes a mix of mandatory national holidays and optional holidays. Muslim employees receive one optional holiday per year; non-Muslim employees receive three optional holidays per year.

Islamic holidays including Eid ul-Fitr, Eid ul-Adha, Ashura, and Milad un-Nabi are tentative. Exact dates are confirmed only upon moon sighting each year. The table below reflects 2025 dates and is flagged for annual review.

Employees required to work on a public holiday are entitled to time off in lieu or up to double their normal wages. For a regional comparison, see the leave policy in India.

Sick Leave

Sick leave entitlement in Pakistan varies by province and the statute that governs the employment relationship. Employers must identify which law applies before setting leave balances.

Under the Factories Act, Sindh grants 16 days of sick leave at full pay. Balochistan grants 20 days at full pay. Punjab and Khyber Pakhtunkhwa each grant 16 days at 50% pay.

Employees covered under the Shops and Establishments Ordinance receive 8 days of sick leave. A medical certificate is required to validate any sick leave claim regardless of province.

Unused sick leave can accumulate up to a maximum of 16 days. Employers should confirm the applicable cap under the specific statute governing their workforce, as provincial rules differ.

Casual Leave

Casual leave covers unforeseen personal emergencies and urgent matters that require an employee to be absent without prior planning.

Under the Factories Act 1934 and the Shops and Establishments Ordinance 1969, employees are entitled to 10 days of casual leave per year at full pay.

Casual leave cannot be taken for more than 3 consecutive days at a time. Unused casual leave lapses at the end of the year and cannot be carried forward to the next leave cycle.

Maternity Leave

Pakistan's Maternity and Paternity Leave Act 2020 sets tiered paid maternity leave based on birth order. Entitlement decreases with each subsequent child and ends after the third.

Leave may begin up to 6 weeks before the anticipated delivery date. Employees must give written notice of pregnancy to their employer as soon as possible.

Employers who fail to comply face penalties of up to 6 months imprisonment and/or a PKR 100,000 fine. Nursing breaks may also apply where childcare facility obligations are in effect.

For a regional comparison, see the leave policy in UAE, where maternity entitlements follow a different statutory framework.

Paternity Leave

Under the Maternity and Paternity Leave Act 2020, fathers in Pakistan are entitled to one month of paid paternity leave after the birth of a child.

Some private-sector employers voluntarily offer additional paid days above the statutory minimum. This is discretionary and not legally required. Employers should document any enhanced paternity leave terms clearly in employment contracts.

Adoption and Surrogacy Leave

Pakistan's Maternity and Paternity Leave Act 2020 does not explicitly provide for adoption or surrogacy leave. There is no statutory entitlement for adoptive or surrogate parents.

In practice, some employers extend their maternity or paternity leave provisions to adoptive parents through internal policy. Where employers do this, they may require supporting documentation such as adoption papers or a court order, and may apply an age-of-child condition.

Employers operating in Pakistan should specify adoption and surrogacy leave terms directly in employment contracts or a written company leave policy. Without a written policy, employees and employers have no clear framework to rely on if a dispute arises.

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Bereavement Leave

Pakistan has no standalone statutory bereavement leave under the Factories Act 1934 or the Shops and Establishments Ordinance 1969.

Most employers grant 3 to 5 days of paid leave for the death of an immediate family member. Covered relationships in common practice include a spouse, parents, children, and siblings.

Muslim female employees who lose their husbands are entitled to Iddat leave, which runs for 130 days at full pay. This provision functions as a statutory form of bereavement leave for that group and is covered in the Other Leave Types section below.

Other Leave Types

Pakistan recognises several leave categories beyond annual, sick, maternity, and paternity entitlements.

Iddat leave applies to Muslim female employees whose husbands have died. The entitlement is 130 days (four months and ten days) at full pay, starting on the date of the husband's death. A death certificate is required. Iddat leave does not reduce the employee's regular leave balance.

Pilgrimage leave allows Muslim employees to take special leave for Hajj or Ziarat. The permitted duration is up to 60 days. Employers should confirm the paid or unpaid status of this leave under the applicable provincial rules.

• Ramadan hours: Employers in manufacturing and services must reduce working hours for Muslim staff during Ramadan while maintaining full salary.
• Marriage leave: Common employer practice grants 3 to 5 days. This is not universally mandated by statute.
• Leave without pay (LWOP): Available at employer discretion once statutory leave entitlements are exhausted.

State or Regional Variations in Leave Entitlements

Pakistan's provincial legislatures have enacted variations to leave entitlements, primarily affecting sick leave under the Factories Act. Annual leave and casual leave are generally uniform across provinces. Sick leave is the primary variable. For comparison, see how the leave policy in Philippines handles regional differences.

Carry-Forward and Leave Encashment Rules

Annual leave carry-forward is capped at 14 days into the next vacation year. Employees cannot accumulate more than this amount of unused annual leave.

Sick leave accumulates up to a maximum of 16 days under the applicable statute. Casual leave does not carry forward. Any unused casual leave lapses at the end of the leave year.

At termination, employers must pay out all accrued but unused annual leave under the Factories Act 1934. Before annual leave commences, the employer must pay 50% of the total vacation pay in advance.

Encashment rules may differ for employees covered under the Shops and Establishments Ordinance rather than the Factories Act. Employers managing workers across both frameworks should verify obligations under each statute. Gloroots EOR services support compliance tracking across these frameworks, giving finance and HR teams clear visibility into termination payment obligations.

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Best Practices for Managing Leave Compliantly in Pakistan

Compliance starts with knowing which statute governs each employee. The Factories Act 1934 and the Shops & Establishments Ordinance 1969 apply to different worker categories, and sick leave entitlements vary by province under each framework.

• Identify the applicable statute for every employee at the point of hire and apply the correct sick leave entitlement by province.
• Document all leave entitlements in employment contracts and employee handbooks, citing the specific statute that applies.
• Record every leave request and approval with timestamps and retain those records for audit purposes.
• Consider offering leave above the statutory minimum, particularly for bereavement, marriage, and adoption, to attract and retain talent. Using employer of record software can automate this tracking and reduce manual compliance risk.

Managing Leave Policy in Pakistan with Gloroots

Pakistan's leave framework spans multiple overlapping statutes. The Factories Act 1934, the Shops & Establishments Ordinance 1969, and the Maternity and Paternity Leave Act 2020 each impose distinct obligations, and sick leave entitlements differ by province. Employers without local expertise face real compliance exposure.

Gloroots maps each employee to the correct statute, maintains accurate leave balances, and integrates leave data with payroll. This covers advance vacation pay calculations and termination encashment, both of which require precise statutory alignment to execute correctly.

Workforce Visibility & Reporting gives HR and Finance teams a single view of leave liability across their Pakistan headcount. For teams evaluating the cost of running compliant employment in Pakistan, Gloroots offers predictable, country-specific pricing with no hidden entity costs.

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Frequently Asked Questions About Leave Policy in Pakistan

How many days of annual leave are employees entitled to in Pakistan?

Employees in Pakistan are entitled to 14 calendar days of fully paid annual leave. This entitlement applies after completing 12 months of consecutive service, as set out under the Factories Act 1934 and the Shops and Establishments Ordinance 1969.

Unused leave of up to 14 days may be carried forward to the following year. If employment ends before that leave is taken, the employer must pay out all accrued unused leave.

How many public holidays does Pakistan observe each year?

Pakistan observes approximately 14 to 16 public holidays per year, as notified by the Cabinet Division. Islamic holidays including Eid ul-Fitr, Eid ul-Adha, Ashura, and Milad un-Nabi are tentative and confirmed only upon moon sighting. Optional holidays apply differently for Muslim and non-Muslim employees.

How does maternity leave work in Pakistan for second and third children?

Under the Maternity and Paternity Leave Act 2020, paid maternity leave is tiered by birth order: 180 days for the first child, 120 days for the second, and 90 days for the third. No paid maternity leave applies after the third child. Only extraordinary unpaid leave is available beyond that point.

Is paternity leave statutory in Pakistan?

Yes. The Maternity and Paternity Leave Act 2020 grants fathers 30 days of paid paternity leave for each of their first three children. Leave begins immediately after the child's birth. No statutory paternity leave applies to a fourth child or beyond.

Does sick leave entitlement vary by province in Pakistan?

Yes. Entitlement differs by province and applicable statute. Under the Factories Act, Sindh grants 16 days at full pay and Balochistan grants 20 days at full pay. KPK and Punjab grant 16 days at 50% pay. Employees covered by the Shops and Establishments Ordinance receive 8 days.

Must employers pay out unused annual leave when an employee is terminated?

Yes. Under the Factories Act 1934, employers must pay out accrued but unused annual leave when employment ends. Employees receive the full monetary value of leave earned but not taken before termination.

Can unused annual leave be carried forward in Pakistan?

Yes. Employees may carry forward up to 14 days of unused annual leave into the following vacation year. Casual leave cannot be carried forward and lapses at year end. Sick leave may accumulate up to 16 days, depending on the applicable provincial statute.