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Labor & HR — Complete IT Company Guide

Minimum wage PKR 37,000, EOBI, SESSI/PESSI, WWF & complete HR compliance

Labor Laws Labor
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Key Data & Rates

Labor Rates & Contributions
Verified May 3, 2026
ItemRateLegal BasisReference
National Minimum WagePKR 37,000/monthMinimum Wage Ordinance 1961Federal Govt Federal Govt
EOBI Employer Contribution5% of minimum wageEOBI Act 1976EOBI EOBI Act 1976
EOBI Employee Contribution1% of minimum wageEOBI Act 1976EOBI EOBI Act 1976
SESSI Employer (Sindh)6% of wagesSESSI Act 2016SESSI SESSI Act 2016
PESSI Employer (Punjab)6% of wagesPESSI ActPESSI PESSI
WWF (Sindh)2% of profitSindh WWF ActSindh Govt Sindh Govt
WWF (Punjab)2% of profitPunjab WWF ActPunjab Govt Punjab Govt
Provident Fund (optional)1/11th of wages (employer)Companies Act 2017SECP Companies Act 2017
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EOBI Act 1976 (5% employer + 1% employee, 5+ employees), SESSI/PESSI/KP ESSI (6% + 1%).
Source: https://eobi.gov.pk/rules/eobilaw.html
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Employee Registration Workflow

Steps to register employees and comply with labor law in Pakistan

Step 1
Register Company with EOBI
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Register as employer on EOBI portal. Obtain employer registration number.

Step 2
Enroll Each Employee with EOBI
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Add each employee with CNIC, get EOBI registration number per employee.

Step 3
Register with SESSI/PESSI
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Enroll with provincial social security (SESSI for Sindh, PESSI for Punjab).

Step 4
Monthly Contribution Payment
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Pay EOBI (5% employer + 1% employee) and SESSI/PESSI (6% employer + 1% employee) monthly.

Step 5
Salary Disbursement by 7th
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Pay salaries by 7th of following month per labor law.

Step 6
WWF Annual Contribution
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Contribute 2% of profit to Workers Welfare Fund by March 31.

Details & Regulations

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

Labor & HR — Complete IT Company Guide

Employee rights, wages, social security, EOBI, and labor law compliance for Pakistan IT companies — federal and provincial.

Federal vs. Provincial Labor LawSOURCE VERIFIED

The 18th Amendment (2010) devolved labor to provinces. Federal laws still apply to ICT and cross-provincial matters, but most IT company compliance is now provincial.
JurisdictionPrimary LawsKey Authority
Federal (ICT)Industrial Relations Act 2012 (Federal), Shops & Establishments Ordinance 1969 (Federal), EOBI Act 1976 (Federal)NIRC, EOBI
SindhSIRA 2013 (Sindh), Sindh Shops Act 2015 (Sindh), Sindh Labour Code 2024 (draft — not yet enacted; verify enactment status) (Sindh)SESSI, Sindh Labour Dept
PunjabPESSI — Rules & Acts, Punjab Shops Act (Punjab)PESSI, Punjab Labour Dept
KPKP Industrial Relations Act (KP), KP Shops Act (KP)KP Labour Dept
BalochistanBRA — Balochistan Revenue AuthorityBalochistan Labour Dept

Minimum Wage & Key Labor Rates (2025-26)SOURCE VERIFIED

ItemFederal/ICTSindhPunjabKPBalochistanReference
Minimum Wage (Unskilled)PKR 37,000/mo (Federal/ICT — FBR Notifications)PKR 40,000/mo (Sindh — Sindh Labour Laws)PKR 37,000/mo (Punjab — PRA Punjab — PSTS Act 2012)PKR 37,000/mo (KP — KPRA Notifications)PKR 37,000/mo (Balochistan — Notification)Sindh Min Wage Notification (Sindh) / Punjab Notification (Punjab)
Minimum Wage (Semi-skilled)PKR 37,000/mo (Federal/ICT — FBR Notifications)PKR 42,500/mo (Sindh — Sindh Labour Laws)PKR 37,000/mo (Punjab — PRA Punjab — PSTS Act 2012)PKR 37,000/mo (KP — KPRA Notifications)PKR 37,000/mo (Balochistan — Notification)Sindh Minimum Wage Act 2015 (Sindh)
Minimum Wage (Skilled)PKR 37,000/mo (Federal/ICT — FBR Notifications)PKR 46,500/mo (Sindh — Sindh Labour Laws)PKR 37,000/mo (Punjab — PRA Punjab — PSTS Act 2012)PKR 37,000/mo (KP — KPRA Notifications)PKR 37,000/mo (Balochistan — Notification)Sindh Minimum Wage Act 2015 (Sindh)
Minimum Wage (Highly-skilled)PKR 37,000/mo (Federal/ICT — FBR Notifications)PKR 51,745/mo (Sindh — Sindh Labour Laws)PKR 37,000/mo (Punjab — PRA Punjab — PSTS Act 2012)PKR 37,000/mo (KP — KPRA Notifications)PKR 37,000/mo (Balochistan — Notification)Sindh Minimum Wage Act 2015 (Sindh)
Working Hours9 hrs/day, 48 hrs/week (Federal/ICT)9 hrs/day, 48 hrs/week (Sindh)9 hrs/day, 48 hrs/week (Punjab)9 hrs/day, 48 hrs/week (KP)9 hrs/day, 48 hrs/week (Balochistan)Shops & Establishments Ordinance 1969 (Federal)
Overtime Rate2x normal rate (Federal/ICT)2x normal rate (Sindh)2x normal rate (Punjab)2x normal rate (KP)2x normal rate (Balochistan)Shops & Establishments Ordinance 1969 (Federal)
Annual Leave14 days/year (Federal/ICT)14 days/year (Sindh)14 days/year (Punjab)14 days/year (KP)14 days/year (Balochistan)Shops & Establishments Ordinance 1969 (Federal)
Sick Leave10 days/year (Federal/ICT)10 days/year (Sindh)10 days/year (Punjab)10 days/year (KP)10 days/year (Balochistan)Shops & Establishments Ordinance 1969 (Federal)
Maternity Leave12 weeks (Federal/ICT — Maternity Benefit Ordinance 1969)16 weeks (Sindh — Sindh Maternity Benefit Act 2018)16 weeks (Punjab — Punjab Maternity Benefit Act 2023)16 weeks (KP — KP Maternity Benefit Act)12 weeks (Balochistan — Maternity Benefit Ordinance 1969)Maternity Benefit Act 1961 (Federal)

Social Security & BenefitsSOURCE VERIFIED

ContributionEmployerEmployeeTotalAuthorityReference
EOBI5% of min wage1% of min wage6%EOBIEOBI Act 1976 (Federal)
SESSI (Sindh)6% of wages3% (Concessional)6%SESSI — Social Security Act 2016SESSI Act 2016 (Sindh)
PESSI (Punjab)7% of wages1%8%PESSIPESSI Act (Punjab)
WWF2% of profit3% (Concessional)2%Sindh / PunjabWWF Act (Sindh) / WWF Act (Punjab)
Provident Fund (optional)1/11th of wages1/11th of wages2/11thSECP — Companies Act 2017Companies Act 2017
Cost advantage: Sindh has a 2% social security cost advantage (6% employer + 1% employee vs 8% total in Punjab). Combined with lower SST rates (15% Sindh — Sindh Sales Tax on Services Act 2011 §4 — vs 0% (Zero-Rated) standard per Punjab Sales Tax on Services Act 2012 §4), Sindh can be marginally more cost-effective for IT operations.

Employer Registration ChecklistSOURCE VERIFIED

#RegistrationAuthorityCostThresholdReference
1EOBI Employer RegistrationEOBIFree5+ employeesEOBI Act 1976 (Federal)
2SESSI Registration (Sindh)SESSI — Social Security Act 2016Free5+ employeesSESSI Act 2016 (Sindh)
3PESSI Registration (Punjab)PESSIFree5+ employeesPESSI Act (Punjab)
4WWF RegistrationSindh Labour Dept / Punjab Labour DeptFreeAll companiesWWF Act (Sindh) / WWF Act (Punjab)
5Employees Provident FundSECP — Companies Act 2017OptionalOptionalCompanies Act 2017

Key Federal Labor Laws for IT CompaniesSOURCE VERIFIED

1. Industrial Relations Act 2012 (Federal)SOURCE VERIFIED

Governs trade union registration, collective bargaining agents (CBA), strikes, lockouts, and dispute resolution. Applies to establishments with 5+ employees.

2. Shops & Establishments Ordinance 1969 (Federal)SOURCE VERIFIED

The most directly applicable law for IT companies (offices, software houses). Regulates working hours (9 hrs/day, 48 hrs/week), leave entitlements, employment of women and young persons, and general employment conditions.

3. EOBI Act 1976 (Federal)SOURCE VERIFIED

ParameterDetails
Employer Contribution (Federal)5% of gross salary (on minimum wage)
Employee Contribution (Federal)1% of gross salary (on minimum wage)
Maximum Insurable Wages (Federal)PKR 100,000/month
Registration Threshold (Federal)5+ employees (mandatory)
Pension Eligibility (Federal)15 years contribution, age 60 (men) / 55 (women)
Minimum Pension (Federal)PKR 10,000/month

4. Payment of Wages Act 1936 (Federal)SOURCE VERIFIED

Ensures timely payment of wages. Salary must be paid by the 7th of the following month. Permitted deductions are limited. Penalties for non-compliance.

5. Workmen Compensation Act 1923 (Federal)SOURCE VERIFIED

Employer liability for injury or death arising from employment — up to PKR 400,000 in case of death.

6. Workers Welfare FundSOURCE VERIFIED

Annual contribution: 2% of profit. Funds housing, education, and marriage grants for workers.

7. Protection Against Harassment Act 2010 (Federal)SOURCE VERIFIED

Protection against Harassment of Women at Workplace Act 2010 — mandatory inquiry committees, procedures, and penalties.

Sindh-Specific Labor LawsSOURCE VERIFIED

Sindh Industrial Relations Act 2013 (SIRA) (Sindh)SOURCE VERIFIED

Primary law for IT companies with 5+ employees in Sindh. Covers trade union formation, collective bargaining, and dispute resolution.

Sindh Shops and Commercial Establishments Act 2015 (Sindh)SOURCE VERIFIED

Directly applicable to IT offices and software houses in Sindh. Regulates working hours, leave, overtime, and employment conditions.

Sindh Minimum Wage Rates (FY 2025-26)SOURCE VERIFIED

CategoryMonthly (PKR)Daily (PKR)
Unskilled40,0001,538
Semi-skilled42,5001,635
Skilled46,5001,788
Highly-skilled51,7451,990

Sindh Employees Social Security (SESSI)SOURCE VERIFIED

Employer contribution: 6% of wages (employee pays 0%). Registration required for 5+ employees. SESSI provides sickness benefit, injury benefit, maternity benefit, death grant, disablement pension, and medical care.

SESSI Registration ProcessSOURCE VERIFIED

  1. Visit SESSI online portal at SESSI Online Services
  2. Create employer account with CNIC and business details
  3. Submit establishment information and upload required documents
  4. Receive SESSI registration number upon approval
  5. Begin monthly 6% contributions for covered employees
  6. Issue social security cards to employees

Sindh Labour Code 2024 (draft — not yet enacted; verify enactment status) (Sindh)SOURCE VERIFIED

Comprehensive consolidation of multiple Sindh labor laws into a single code. Simplifies compliance by unifying provisions from the Shops Act, Minimum Wage Act, and other labor legislation.

Sindh vs. Punjab Social Security ComparisonSOURCE VERIFIED

AspectSindh (SESSI)Punjab (PESSI)
Employer Contribution6% (Sindh)7% (Punjab)
Employee Contribution0% (Sindh)1% (Punjab)
Total Cost to Employer6% (Sindh)8% (Punjab)
Max Insurable WagePKR 7,000/month (Sindh)Different (Punjab)
Registration PortalSESSI Online Servicespessi.punjab.gov.pk

Monthly Compliance CalendarSOURCE VERIFIED

ComplianceFrequencyDue DatePenaltyReference
Salary DisbursementMonthly7th of following monthPayment of Wages Act 1936 (Federal) penaltyPayment of Wages Act 1936 (Federal)
EOBI ContributionMonthly15th of following month2%/month + 5% surchargeEOBI Act 1976 (Federal)
Social Security ContributionMonthlyEnd of month6% surcharge (Sindh)SESSI Act 2016 (Sindh) / PESSI Act (Punjab)
Income Tax WithholdingMonthly15th of following monthPKR 37,000ITO 2001 §165
EOBI Annual ReturnAnnual30 days after year-endPenaltyEOBI Act 1976 (Federal)
WWF ContributionAnnualDecember 315% surchargeWWF Act (Sindh) / WWF Act (Punjab)

SBP Teen Bank Accounts (New)SOURCE VERIFIED

Per BPRD C1/2026, SBP has enabled 26 million teenagers (ages 13-18) to open independent bank accounts and digital wallets. Relevant for IT companies hiring interns:

  • Eligibility: Teenagers 13-18 years with CNIC or B-Form
  • Account Types: Savings and current accounts, digital wallets
  • Guardian oversight: Required for certain transaction types
  • Adult Account Ownership: 67% in Pakistan (per SBP)

Current Labor Context (April 2026)SOURCE VERIFIED

MetricValueSource
Avg Monthly WagePKR 39,042PBS LFS 2024-25
Avg Household IncomePKR 82,179/monthPBS
Labour Force Participation46.3%PBS
Unemployment Rate7.1%PBS
Population241.49 millionCensus 2023

Key ContactsSOURCE VERIFIED

OrganizationContactWebsite
EOBIHelpline via regional officesEOBI — Act & Rules
SESSI (Sindh)0800 337 72 / UAN: 021 111 173 774sessi.gov.pk
PESSI (Punjab)Provincial helplinepessi.punjab.gov.pk
Sindh Labour Dept—dglabour.gos.pk
FBR Helpline051 111 772 772 (Mon-Fri 8AM-11:30PM)fbr.gov.pk
Critical Note: As of April 2026, the EOBI website (eobi.gov.pk), SESSI, and Federal Labour websites have been experiencing downtime (SSL/DNS errors). Verify current contribution rates and procedures directly with the relevant offices. The Sindh Labour Code 2024 (draft — not yet enacted; verify enactment status) (Sindh) consolidates many provisions — consult a qualified labor law advisor.

Related PoliciesSOURCE VERIFIED

Labor & HR Compliance Checklist
EOBI Act 1976
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SESSI/PESSI Act
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Minimum Wage Ordinance
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Labor Law
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EOBI Act 1976
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SESSI/PESSI Act
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Provincial WWF Act
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Provincial WWF Act
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Source Citations (2)
Companies Act 2017
https://www.secp.gov.pk/companies-act-2017/
verified 2017 law
EOBI Act 1976
https://eobi.gov.pk/rules/eobilaw.html
pk_only 1976 law
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Labor Laws Labor
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