PKR 37,000 per month. Applies nationwide since July 2024.

5% of minimum wage (PKR 1,850/month) as employer contribution, plus 1% employee contribution, under EOBI Act 1976.

The federal minimum wage is Rs 37,000 per month (as of 2025-26). Provincial minimum wages may differ slightly but generally align with the federal rate. For IT companies: the minimum wage applies to all employees regardless of skill level. In addition, employers must pay EOBI (6% total), SESSI/PESSI (6%), and Workers Welfare Fund (2% above threshold). The total labor cost is approximately Rs 37,000 + Rs 2,220 (EOBI) + Rs 2,220 (SESSI) + applicable WWF = ~Rs 41,440 minimum per employee.

SESSI (Sindh Employees Social Security Institution) applies to establishments with 5+ employees in Sindh province, with 6% employer contribution. PESSI (Punjab Employees Social Security Institution) applies to establishments with 5+ employees in Punjab province, also 6% employer contribution. Both provide similar benefits: sickness (121 days full wages), injury, maternity (180 days), death grant, disablement pension, and survivors pension. The key difference is provincial jurisdiction. KP has its own social security scheme. If your company operates in Sindh, register with SESSI at sessi.gov.pk. If in Punjab, register with PESSI.

The federal minimum wage is Rs. 37,000/month (as of 2025 notification). However, Sindh has set Rs. 37,000/month and Punjab Rs. 37,000/month (2025-26). ICT (Islamabad) follows the federal rate. IT companies must pay at least the applicable provincial minimum wage. For IT professionals, market rates significantly exceed minimum wage — software engineers typically earn Rs. 100,000-500,000+, so minimum wage compliance is rarely an issue for skilled positions but matters for support staff.

EOBI (Employees' Old-Age Benefits Institution) registration steps: (1) Register your company at eobi.gov.pk; (2) Submit Form PR-01 (employer registration); (3) Submit Form PR-03 (employee registration) for each employee; (4) Monthly contribution: 6% employer + 1% employee of minimum wages (Rs. 37,000 x 7% = Rs. 2,240/employee/month); (5) File monthly return by 20th of following month; (6) Maintain contribution records. All employees working 180+ days in a year must be registered.

SESSI (Sindh Employees' Social Security Institution) covers companies in Sindh; PESSI (Punjab Employees' Social Security Institution) covers Punjab. Key: (1) Registration mandatory if 10+ employees in Sindh, 20+ in Punjab; (2) Employer contributes 7% of wages (varies by province); (3) Provides medical coverage, sickness/maternity benefits, disability pensions, death grants; (4) Based on where the employee works, NOT where the company is HQ'd. If your IT company has employees in Karachi, you register with SESSI; Lahore, PESSI; Islamabad, federal social security rules.

Under various labor laws: (1) Working hours: 8 hours/day, 48 hours/week (factories); 9 hours/day for commercial/IT establishments; (2) Overtime: 2x regular rate (or as per contract); (3) Annual leave: 14 calendar days after 12 months service; (4) Sick leave: 10 days/year (8 under Sindh); (5) Casual leave: 10 days; (6) Maternity leave: 180 days (federal); (7) Festival holidays: 13 days (federal); (8) Weekly holiday: 1 day/week.

Worker's Welfare Fund (WWF) under the Workers' Welfare Fund Ordinance 1971 applies to industrial establishments with 20+ workers. Contributions: employer pays Rs. 100/worker/annum (plus 2% of profit exceeding Rs. 500,000). For most IT companies, WWF may NOT apply if you have fewer than 20 employees or don't qualify as an 'industrial establishment.' However, some interpretations include IT services. Current practice: IT companies with 20+ employees should register and contribute.