Pakistan’s sick leave rules are split across two frameworks that apply to different types of employers, and then split again by province. Under the Factories Act 1934, factory workers get 16 days of sick leave — but on half pay. Under the Shops and Establishments Ordinance 1969, shop and commercial establishment workers get 8 days — but on full pay, with unused days carry-forwarding up to 16. And in Sindh, the Factories Act is upgraded to full pay.
That patchwork is where employers get Pakistan wrong. They apply a single rule across all workers, or they confuse the 10-day casual leave entitlement with the sick leave entitlement. This guide walks through both frameworks, the provincial differences, and the pay rates that actually apply.
Key takeaways
- The Factories Act 1934 (federal, applicable in Punjab, Balochistan, and ICT) provides 16 days of sick leave on half average pay per year under section 49-H.
- The Shops and Establishments Ordinance 1969 (applicable in Punjab, Balochistan, and ICT) provides 8 days of sick leave on full wages per year under section 15, with carry-forward capped at 16 days.
- Sindh upgraded the Factories Act sick leave to 16 days on full pay under the Sindh Factories Act 2015, section 79.
- Casual leave is a separate entitlement: 10 days on full wages under both frameworks, with a maximum of 3 consecutive days.
- The Khyber Pakhtunkhwa Factories Act 2013 mirrors the federal Factories Act: 16 days on half average pay.
The two frameworks
Pakistan does not have a single national sick leave law. Two separate instruments apply depending on the type of establishment:
| Framework | Applies to | Sick leave provision |
|---|---|---|
| Factories Act 1934 (federal) | Factories in Punjab, Balochistan, ICT | 16 days, half average pay |
| Shops & Establishments Ordinance 1969 | Shops and commercial establishments | 8 days, full wages |
| Sindh Factories Act 2015 | Factories in Sindh | 16 days, full pay |
| KP Factories Act 2013 | Factories in Khyber Pakhtunkhwa | 16 days, half average pay |
An employer who runs both a factory and a retail outlet in the same province may owe different sick leave entitlements to workers in each. The classification of the establishment determines which framework applies.
Factories Act: 16 days on half pay
Section 49-H of the Factories Act 1934 provides:
Every worker shall be entitled to sick leave for a total period of sixteen days in every year on half average pay.
“Half average pay” means 50% of the worker’s average daily wage, calculated over the 12 months preceding the leave. The entitlement is 16 days per year; there is no service-based accrual and no certificate requirement specified in the Act, though employers commonly require one through company policy.
Sindh: full pay upgrade
The Sindh Factories Act 2015, section 79, replaces the half-pay provision with:
Every worker shall be entitled to sick leave for a total period of sixteen days in every year on full wages.
This is a material difference. A factory worker in Karachi on sick leave receives full wages; a factory worker in Lahore on sick leave receives half. The duration is the same — 16 days — but the cost to the employer doubles in Sindh.
Punjab and Balochistan: half pay applies
Outside Sindh, the federal Factories Act 1934 governs. The sick leave rate is half average pay for 16 days per year. Neither the Punjab nor the Balochistan provincial government has enacted a separate factories act that changes this rate.
Note on Balochistan: Some practitioner guides cite a 20-day sick leave entitlement for Balochistan. This could not be verified against the primary text of the Factories Act or a Balochistan-specific amendment during research. Treat the 16-day federal figure as the confirmed standard until a Balochistan-specific source is located.
Shops and Establishments: 8 days on full wages
Section 15 of the West Pakistan Shops and Establishments Ordinance 1969 (applicable in Punjab, Balochistan, and ICT) provides:
Every employee shall be entitled to sick leave with full wages for a total period of eight days in every year. Such leave, if not availed of by any employee during a calendar year, may be carried forward, but the total accumulation of such leave shall not exceed sixteen days at any one time.
Two differences from the Factories Act stand out:
First, full pay. The Shops and Establishments rate is full wages, not half. A shop worker on sick leave earns more per day than a factory worker on sick leave (outside Sindh).
Second, carry-forward. Unused sick leave accumulates from year to year, capped at 16 days. A worker who takes 4 days in year one carries 4 forward; taking 4 in year two carries 8 forward; and so on up to the 16-day cap. The Factories Act has no equivalent carry-forward provision.
Sindh Shops and Commercial Establishment Act 2015
Sindh’s own Shops and Commercial Establishment Act 2015 mirrors the federal Ordinance’s sick leave provision: 8 days on full wages with carry-forward up to 16 days. The Sindh act did not upgrade this to 16 days as it did for factories.
Casual leave is separate
Both frameworks provide casual leave as a distinct entitlement:
| Framework | Casual leave | Sick leave |
|---|---|---|
| Factories Act 1934 | 10 days, full pay | 16 days, half pay |
| Sindh Factories Act 2015 | 10 days, full pay | 16 days, full pay |
| Shops & Establishments 1969 | 10 days, full pay | 8 days, full pay, carry-forward |
Casual leave is for personal matters and does not require a medical certificate. It cannot ordinarily be taken for more than 3 consecutive days and does not accumulate. Sick leave is for illness and, while the Factories Act does not mandate a certificate, employers should require one through policy.
A worker may not substitute casual leave for sick leave or vice versa without the employer’s agreement. The two should be tracked as separate absence types.
Social security and work injury
Pakistan’s social security system provides medical benefits through the Employees’ Old-Age Benefits Institution (EOBI) and provincial social security institutions, but these do not replace the employer’s sick leave wage obligation. Social security covers medical treatment costs, not wage replacement during ordinary illness.
For work-related injury, the Workmen’s Compensation Act 1923 provides a separate regime: the employer bears the cost of medical treatment and pays compensation based on the assessed disability. Work injury should never be routed through ordinary sick leave — the entitlement, the pay rate, and the insurance coverage are all different.
Common employer mistakes
1. Applying a single sick leave rule to all workers
A factory worker and a shop worker in the same city may have different sick leave entitlements. The classification of the establishment determines which law applies. Applying the Factories Act to a shop worker understates the entitlement; applying the Shops and Establishments Ordinance to a factory worker overstates it.
2. Confusing casual leave with sick leave
The 10-day casual leave entitlement is not the sick leave entitlement. Using 10 days as the sick leave cap underpays factory workers by 6 days and ignores the carry-forward provision for shop workers.
3. Paying half pay in Sindh
The Sindh Factories Act 2015 upgraded sick leave to full pay. Applying the federal half-pay rate to a Sindh factory worker underpays by 50% of the sick leave wage.
4. Not tracking carry-forward for shop workers
The Shops and Establishments Ordinance permits carry-forward up to 16 days. An employer who zeros out sick leave at year-end for shop workers denies them an accumulation right the Ordinance provides.
5. Requiring a medical certificate for factory sick leave when company policy is silent
The Factories Act does not mandate a certificate. If the employer’s standing orders or company policy do not require one, demanding it may be challenged as an unreasonable addition to the statutory entitlement. Set the requirement in policy before relying on it.
Frequently asked questions
How many sick days do workers get in Pakistan?
It depends on the framework: 16 days on half pay under the Factories Act (or 16 days on full pay in Sindh), and 8 days on full wages under Shops and Establishments with carry-forward up to 16 days.
Is sick leave paid in Pakistan?
Yes. Factory workers receive half average pay (full pay in Sindh). Shop workers receive full wages. The rate depends on which law applies.
Does sick leave carry forward?
Under the Factories Act, there is no carry-forward provision. Under Shops and Establishments, unused sick leave accumulates up to a cap of 16 days.
Can an employer reduce the sick leave entitlement?
No. Both the Factories Act and the Shops and Establishments Ordinance set minimum entitlements. An employer may offer more but not less.
What is the difference between casual and sick leave?
Casual leave is 10 days per year for personal matters, no certificate required, no consecutive limit beyond 3 days, no carry-forward. Sick leave is for illness, with different durations and pay rates depending on the framework.
Do factory workers need a medical certificate?
The Factories Act does not require one. Employers should set the certificate requirement in their standing orders or company policy if they want to enforce it.
Putting it into practice
Five checks cover most Pakistan sick leave compliance:
- Classify each establishment correctly — factory or shop/commercial establishment — to determine which law applies.
- Set the sick leave balance to match the applicable framework: 16 days half pay (factories, federal), 16 days full pay (Sindh factories), or 8 days full pay with carry-forward to 16 (shops and establishments).
- Track casual leave as a separate 10-day balance with the 3-day consecutive limit.
- For shop workers, configure carry-forward with a 16-day accumulation cap — do not zero out at year-end.
- Apply the correct pay rate by province: half pay for factories outside Sindh, full pay for Sindh factories and all shop workers.
Pakistan’s sick leave rules are a patchwork of provincial and federal instruments, and the pay rate — half or full — depends on both the type of establishment and the province. A leave system that classifies each worker correctly, applies the right pay rate, and tracks carry-forward for shop workers keeps the employer compliant across a landscape where a single misclassification produces underpayment.
Sources
- Factories Act 1934, s.49-H — Pakistan Code (primary source)
- West Pakistan Shops and Establishments Ordinance 1969, s.15 — Balochistan Code
- Sindh Factories Act 2015, s.79 — Sindh Government
- Punjab Shops and Establishments Ordinance 1969, s.15 — CLR Pakistan
- WageIndicator — Annual Leave FAQs: Pakistan
Last updated: 26 July 2026. This article is general guidance, not legal advice. Pakistan’s sick leave rules vary by province and establishment type — confirm the applicable law for each worker’s location and employment category. For work injury classification or termination cases, consult a Pakistan-qualified employment lawyer.