A Nation That Remembers Its Workers

Every year on the first of May, the world stops to honour those who build it. The masons, the mill workers, the seamstresses, the sanitation crews, the millions of hands without which no economy moves. In Pakistan, Labour Day carries special weight. This is a country where the working class is not a statistical category. It is the backbone of the nation.

As we celebrate May Day in 2026, it is prudent for us to reflect, not necessarily with any sense of nostalgia, but with honesty, on the progress that Pakistan has made from the time of our independence in 1947.

Inheriting a Framework: 1947 and the Colonial Legacy

Upon the attainment of its independence in 1947, the newly born country did not have a blank slate to work on. Instead, it took with it some labor laws that were enacted by the British before it gained its independence. These include the Trade Unions Act 1926, the Factories Act 1934, the Industrial Disputes Act 1947, and the Industrial Employment (Standing Orders) Act 1946.

For their time, they were progressive. They allowed workers to form trade unions in all sectors except the armed forces and police. They gave workers the right to collective bargaining. They set early standards for dispute resolution.

On the very same day Pakistan was born, it took a defining step as it joined the International Labour Organization (ILO). That founding membership was not symbolic. It was a statement of intent. Pakistan, even in its infancy, placed workers’ dignity among its national priorities.

The 1950s and 1960s: Laying Foundations

The first formal Labour Policy was announced in 1955.  Critics called it a ‘paper policy.’ Perhaps. However, it established a precedent that the Pakistani state owed its workers a considered framework. Under General Ayub Khan’s era, the Industrial Disputes Ordinance of 1959 reshaped the labour landscape. The government expanded the definition of public utility services and tightened control over strikes. For workers in those industries, it was a step back. but the period also saw rapid industrialisation. Urban factories grew. The new industrial labor force was forming.

In 1965, the Provincial Employees Social Security Ordinance was introduced, which marked the beginning of the establishment of a social safety network for workers in Pakistan. It brought social security cover against illness, maternity, employment injuries, and death into the picture.

The 1969 Turning Point: Rights Written into Law

The Labour Policy of 1969, announced under Air Marshal Noor Khan, marked a genuine leap. For the first time, collective bargaining was formally recognised as a workers’ right, a right that emanates from Article 17(1) of the Constitution. The Industrial Relations Ordinance of 1969 made this concrete. Workers could now determine their collective bargaining agent through secret ballot. They had a mechanism to negotiate wages and conditions as a unified force.

Bhutto’s Era: The Most Ambitious Labour Reforms in Pakistan’s History

No honest account of Pakistan’s labour history can omit Zulfikar Ali Bhutto and the Labour Policy of 1972. It was, by any measure, the most comprehensive package of workers’ rights in the country’s history.

The reforms guaranteed workers their fundamental rights of freedom of association and collective bargaining. They provided assurance of greater job security. They introduced workers’ participation in factory management at 20 percent. Labour courts were set up by the government whereby workers could get justice through these specialized courts quickly. The Workmen’s Welfare Ordinance was passed that provided funds for the provision of housing, education and other facilities for workers. Employees’ Old Age Benefits Act made provision for the country’s first pension system for workers. Profit-sharing was expanded as workers’ share in company profits was raised from two percent to four percent. Group insurance and gratuity benefits were strengthened.

Labour Day was declared a public holiday in Pakistan in 1972. This was a deliberate choice. Pakistan showed solidarity with international labour by commemorating May 1 because this was the day when workers in Chicago fought for the eight-hour day.

The 18th Amendment: Devolution and Provincial Agency

The 18th Constitutional Amendment Act of 2010 handed over responsibility for labor legislation to provincial governments. Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan were empowered to create their own policies. Within two years of implementing the new amendments, the province of Sindh enacted a Home-Based Workers Bill, thus protecting domestic workers. Khyber Pakhtunkhwa followed the same suit in 2021. The latest development is that of Punjab, which passed its own Home-Based Workers Act in 2023. This marked the moment when women engaged in stitching garments within the confines of their homes, paid piece-rate wages without any employee benefits, acquired the status of workers.

In addition to this, Pakistan introduced an act called The Maternity and Paternity Leave Act. Under the said act, up to 180 days can be taken by women during childbirth, whereas men can take paternity leave of 30 days.

The Punjab Labour Code 2026: A Historic Consolidation

The most significant recent development in Pakistan’s labour landscape is the Punjab Labour Code 2026, enacted on February 4, 2026. It is not an exaggeration to call it historic.

• What the Code Delivers for Workers

The rights enjoyed by the fixed term employees are the same as those of permanent employees based on the length of their service, while gratuity rights for contract employees have been lowered from five years to one year of continuous service. The provision for free annual medical examination by the employer applies only to workers who are above 40 years old, while a safety officer is supposed to be appointed in high risk industrial establishments. Fines imposed for employing child labourers and failing to ensure safety have been enhanced to up to PKR 500,000. The minimum wage for each worker is set according to consumption-based calculation considering the human needs of a family, 2,700 calories per individual per day, as well as accommodation, clothing, and educational facilities. Workers can register and monitor grievances using an online facility, with all cases being referred to mandatory conciliation prior to the court proceedings. For women, night shift work is allowed with safe transport and security; establishments with over 30 women must provide daycare (reduced from 50), and equal pay for equal work is mandated.

• The Agricultural Worker: No Longer Invisible

Probably one of the most significant developments associated with the Punjab Labour Code of 2026 was its incorporation of agricultural workers into the code. The inclusion of agricultural workers in the Code marks their recognition as rights-carrying employees.

International Commitments: Pakistan and the ILO

Being a member state of ILO since 1947, Pakistan has signed 36  conventions of the International Labor Organization. In March 2025, Pakistan ratified three additional ILO instruments, including the 2014 Protocol to the Forced Labour Convention, the Maritime Labour Convention, and the Labour Statistics Convention. Pakistan has also launched its first Gender Pay Gap Report, developed in collaboration with the ILO. The report does not simply document the problem, it includes a National Action Plan with concrete recommendations for aligning Pakistan’s legislation with international equal pay standards.

In 2025, at the time of celebrating Labour Day, the National Industrial Relations Commission (NIRC) had jointly arranged an international conference along with the International Labour Organization on the topic of “Workers and Employers: Navigating through Change Through Social Dialogue.” This conference was held in order to develop sound industrial relations.

A Nation in Progress

Pakistan’s workers are not waiting for rescue. They are already contributing. They build the roads, stitch the exports, operate the machines, tend the fields, and raise the children who will inherit this country. They do not ask for sympathy. They ask for systems that work.

Pakistan has been building those systems, incrementally, but continuously. This May Day, as trade unions march and policymakers make promises, the most credible thing Pakistan can say to its workers is not a speech. It is the Punjab Labour Card arriving in a worker’s hand. It is the complaint filed at 2 a.m. through a digital portal and resolved within 30 days. It is the agricultural labourer in Punjab who, for the first time in her country’s history, is legally recognised as a worker with rights.