Working Hours and Overtime Pay in Pakistan (2024)

FAQs

How is overtime pay calculated in Pakistan? ›

In accordance with the section 47 of Factories Act, 1934; if a worker works beyond the stipulated working hours, i.e., 9 hours a day and 48 hours a week, he is entitled to an overtime pay that is double the rate of his ordinary pay (200% of the normal wage rate).

Art. 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof.

Know more about labour laws of working hours and overtime pay in Pakistan. According to the law, your normal working hours per day are 8-9 hours and these should not be more than 48 hours per week. By including the lunch and prayer time in hours of work, working hours should not be greater than 9 hours a day.

Section 51 and Section 59 of the Factories Act - 1948[2] states, “No employee is supposed to work for more than 48 hours in a week and 9 hours in a day. Any employee who works for more than this period is eligible for overtime remuneration prescribed as twice the amount of ordinary wages.”

Basic salary is a rate of pay agreed upon by an employer and employee and does not include overtime or any extra compensation.

Under Sec. 33 it is mentioned that for overtime wages are to be paid at the rate of twice the ordinary rates of wages of the worker. Under Sec. 17 & 18 of the Act relating to working hours, it is mentioned that the period of work including over time work should not exceed 10 hours in a day and 54 hours in a week.

This means 48 hours overtime can be taken in a month (12 hours X 04 weeks = 48 hours). 4. Another catch is, even though 04 hours per day or 48 hours per month OT can be availed, the quarterly overtime should be restricted to 75 hours and no employee should continue overtime for more than 07 days at a stretch.

Ordinarily, a lunch-break is not part of of an employee's working hours.

Pakistan's Minimum Wage is the lowest amount a worker can be legally paid for his work. Most countries have a nation-wide minimum wage that all workers must be paid. Pakistan's minimum wage is 15,000 Pakistani rupees per month ($150).

What are employment laws in Pakistan? ›

The main sources of employment law are as follows. The West Pakistan Shops and Establishments Ordinance 1969 regulates the work hours and other conditions of work and employment of persons employed in shops and commercial, industrial and other establishments in Pakistan. Applicable on employees.

The Labour Policy envisages a harmonious working relationship between workers and employers for improving the performance and efficiency of the industry. The rights and obligations based approach to labour issues is being followed also in accordance with the Constitution of the Islamic Republic of Pakistan.

Is it legal to work overtime without pay? No (in most cases — see exceptions in the question below). According to US federal law, it's illegal to not compensate non-exempt employees for working overtime, even if they do it without the employer's approval.

Work Hours and Overtime Pay in India. Working Hours in India: As per the Factories Act 1948, every adult (a person who has completed 18 years of age) cannot work for more than 48 hours in a week and not more than 9 hours in a day.

Your contract or statement might say you need to do some work on top of your usual working hours - this is called overtime. You only have to work overtime if your contract says so. You don't have to work overtime if you could show the extra hours would make you earn less than the national minimum wage.

Calculating Overtime for Hourly Employees

Overtime pay is calculated: Hourly pay rate x 1.5 x overtime hours worked. Here is an example of total pay for an employee who worked 42 hours in a workweek: Regular pay rate x 40 hours = Regular pay, plus. Regular pay rate x 1.5 x 2 hours = Overtime pay, equals.

Step 1: Calculate regular rate of pay by dividing salary by total hours worked. Step 2: Calculate overtime pay by multiplying the hours of overtime worked by one-half the regular rate of pay. Step 3: Add overtime time to salary to determine total pay.

In most cases, overtime pay rate is 1.5 times the employee's regular rate of pay, which is commonly referred to as “time and a half”.

But new estimates show that there are limits. The Occupational Safety and Health Administration dictates that any work time of more than 40 hours in one week, voluntarily or otherwise, is defined as overtime and demands appropriate compensation.

The traditional American business hours are 9:00 a.m. to 5:00 p.m., Monday to Friday, representing a workweek of five eight-hour days comprising 40 hours in total.

Can I refuse to work overtime? ›

Overtime is voluntary and employees have the right to refuse.

Your employer cannot make you work more hours than you are contracted. Your contract might say something about overtime, but this should be very clearly described. Usually, your contract will say something like 'reasonable overtime may be required from time to time, in accordance with the needs of the business'.

Add up the number of hours from each week to get your total. Divide by the total number of weeks. The resulting number is the average hours you would have worked during weeks when you took your previous leave.

According to Salary Explorer, the average hourly wage in Pakistan is 470 PKR (USD 2.85). In comparison, employees in the USA, India, and Ukraine earn USD 46, 2.43, and 4.83 per hour, respectively.

The province of Punjab has revised the minimum wage from PKR 20,000 to PKR 25,000 rupees per month for unskilled work. Similarly, the minimum wages for 102 sectors/industries and various skill categories have also been raised, effective from 01 July 2022.

A basic salary is the amount of money you earn before any add-ons or deductions. One may earn a certain amount and then get dividends from shares or overtime remuneration. Those at a junior level usually take a higher percentage of their basic salary compared to those at senior level.

With regards to payment of full and final payment after an employee quits, the Code on Wages, 2019 says, "Where an employee has been - (i) removed or dismissed from service; or (ii) retrenched or has resigned from service, or became unemployed due to closure of establishment, the wages payable to him shall be paid ...

Given the structure of Indian labor laws, there is no standard process to terminate an employee in India. An employee may be terminated according to terms laid out in the individual labor contract signed between the employee and the employer. Equally, the terms may be subject to the country's labor laws.

Workers' rights encompass a large array of human rights from the right to decent work and freedom of association to equal opportunity and protection against discrimination. Specific rights related to the workplace include health and safety in the workplace and the right to privacy at work, amongst many others.

Pakistan has serious laws regarding drug offences, blasphemy, unlawful assembly and hom*osexuality. This is what travelers need to know. In addition to government sanctioned laws, there is also Islamic law to consider in Pakistan. Pakistan is a Muslim country that experiences severe sectarian violence.

What are labour laws? ›

labour law, the varied body of law applied to such matters as employment, remuneration, conditions of work, trade unions, and industrial relations. In its most comprehensive sense, the term includes social security and disability insurance as well.

The Act clearly stipulates your rights as an employee when it comes to leave: The Basic Conditions of Employment Act provides for annual leave on completion of a year of continuous service with an employer. A worker is entitled to 21 consecutive days of paid annual leave.

According to the FLSA, the formula for calculating overtime pay is the nonexempt employee's regular rate of pay x 1.5 x overtime hours worked. This calculation may differ in states that have requirements, such as double time, which are more favorable to the employee.

EXPLANATION 2: The overtime work in excess of one hour upto half an hour and thereafter every period upto half an hour be reckoned as half hour e.g. a person working for 2 hours and 10 minutes in excess of one hour beyond the prescribed hours of work will get overtime allowance for 2-1/2 hours.

Pakistan's Minimum Wage is the lowest amount a worker can be legally paid for his work. Most countries have a nation-wide minimum wage that all workers must be paid. Pakistan's minimum wage is 15,000 Pakistani rupees per month ($150).

Take the total number of hours worked in the week and subtract by the weekly overtime threshold. Then multiply by the ratio of hours worked for that position.

How overtime pay is calculated. Overtime pay is calculated as follows: Hourly basic rate of pay × 1.5 × number of hours worked overtime.

If the employee's total monthly salary is Rs 26,000, and if the employee joins on September 21, he or she will be paid Rs 10,000 for the 10 days in September. Since September has 26 base days (30 minus 4 Sundays), the per-day pay is calculated as Rs 26,000/26 = Rs 1,000.

Where payment is made for overtime, the hours worked should be recorded by the employer and payment due should be calculated in accordance with the contract of employment at the agreed rate, i.e. plain time or premium rate. Payment is usually made a week or month in arrears.

I have to request my manager to advice the HR to make me entitled for Overtime pay. Dear Sir, I am writing this letter to formally inform you of my Overtime Payment Concern. As per the Employment Contract I signed on November 19, 2017, I have 60 working hours per week and I am not entitled to receive any overtime pay.

What is the rule of compensatory leave? ›

It is an entitled leave that an employee can take on a working day as a compensation for working at employers request on a holiday or weekend. In simple terms, when an employee works overtime at the request of his employer, then later he/she can take time off or compensatory off from their work.

Enter "=IF(A1<40,A1A2,40A2)" in cell A4. This calculates the pay amount for hours up to 40 hours. If you worked 48 hours, then this only calculates 40 hours.

How to Track Hours Worked in Excel + How to Calculate Pay in ... - YouTube

Write each day of the week in its own row, then create a new cell label titled "TOTAL." The cells next to this one will display the total number of hours worked and pay received for the week. This is applied using the function "=SUM(E2:E8)" to calculate total hours.

According to Salary Explorer, the average hourly wage in Pakistan is 470 PKR (USD 2.85). In comparison, employees in the USA, India, and Ukraine earn USD 46, 2.43, and 4.83 per hour, respectively.

The province of Punjab has revised the minimum wage from PKR 20,000 to PKR 25,000 rupees per month for unskilled work. Similarly, the minimum wages for 102 sectors/industries and various skill categories have also been raised, effective from 01 July 2022.

A basic salary is the amount of money you earn before any add-ons or deductions. One may earn a certain amount and then get dividends from shares or overtime remuneration. Those at a junior level usually take a higher percentage of their basic salary compared to those at senior level.