How to Recover Unpaid Salary in Pakistan

An employer's failure to pay salary on time can create serious financial difficulties for employees. Rent, household expenses and other financial commitments may become difficult to manage when monthly wages remain unpaid.

If your employer has withheld your salary, delayed payment or made unexplained deductions, you may have legal options to recover the amount.

The law governing unpaid salary in Pakistan depends on the province, type of establishment, employment relationship and applicable legislation. This guide explains how to recover unpaid salary, prepare a wage complaint, collect supporting evidence and approach the appropriate legal authority.

What Is Unpaid Salary Under Pakistani Labour Law?

Unpaid salary refers to wages an employee has earned but has not received within the legally applicable payment period.

It may involve a complete salary payment, a partial amount or repeated delays by an employer.

Common examples of unpaid salary include:

• Monthly salary withheld without a valid legal reason.
• Salary delayed for several months.
• Payment below the agreed or legally payable amount.
• Unexplained deductions from monthly wages.
• Earned wages withheld after an employee resigns.
• Salary withheld after an employee's termination.
• Overtime or other wage-related payments left unpaid where legally due.

An employer's financial difficulties do not automatically remove the obligation to pay wages already earned. However, the employee's entitlement and available recovery procedure must be assessed under the applicable law.

Which Laws Protect Employees Against Unpaid Salary in Pakistan?

Pakistan has different wage-payment laws and legal procedures across its provinces and Islamabad Capital Territory.

The applicable law depends on where the employee works, the type of establishment and the employee's legal classification.

1. Islamabad Capital Territory

• The Payment of Wages Act, 1936 provides a statutory framework for payment of wages to covered employees in Islamabad Capital Territory.
• Section 15 provides a procedure for claims involving delayed wages and unlawful deductions before an appointed authority.
• The ICT Labour Welfare Department also identifies referring wage cases to the authority under the Payment of Wages Act, 1936 as one of its functions.

2. Sindh

• The Sindh Payment of Wages Act, 2015 (Sindh Act VI of 2017) regulates wage payments for covered factories, industrial establishments and commercial establishments.
• Section 15 provides a mechanism for claims involving delayed wages and unlawful deductions.
• The Government may appoint a Commissioner for Workmen's Compensation or a qualifying Labour Department officer to hear and decide such claims.

3. Khyber Pakhtunkhwa

• The Khyber Pakhtunkhwa Payment of Wages Act, 2013 regulates wage payments in covered factories, industrial establishments and commercial establishments.
• Section 15 allows qualifying employees to approach an appointed authority for delayed wages, unlawful deductions and specified employment-related dues.
• The Act also addresses claims involving provident fund, gratuity, bonus, overtime, leave encashment and other payments covered by the legislation.

4. Balochistan

• The Balochistan Payment of Wages Act, 2021 provides a broader statutory framework covering factories, industrial and commercial establishments and several other categories of workplaces.
• Section 16 provides a procedure for claims involving delayed wages, unlawful deductions and specified employment-related payments.

5. Punjab

• Punjab enacted the Punjab Labour Code 2026 as Act IX of 2026.
• However, Section 1(3) provides that the Code will commence on a date specified by the Government through an official Gazette notification.
• Its commencement and transitional provisions must be verified before relying on its wage-recovery procedures. Do not assume that its new Payment of Wages Authority provisions are automatically operative simply because the Code has been enacted.

When Must an Employer Pay Salary?

• The applicable wage-payment deadline depends on the relevant legislation and the category of establishment.
• Several Payment of Wages laws provide that a wage period cannot exceed one month. Some covered establishments must pay wages within seven or ten days after the end of the wage period.
• For example, Section 5 of the Khyber Pakhtunkhwa Payment of Wages Act, 2013 provides different payment deadlines depending on the establishment and number of persons employed.
• The Sindh and Balochistan legislation also contains statutory payment deadlines for covered categories.
• These deadlines should not be applied automatically to every private employee in Pakistan. The relevant statutory provision and workplace coverage must first be checked.
• Where an employee has been terminated, some provincial laws also provide a separate deadline for payment of earned wages.

What Can an Employee Do If the Employer Does Not Pay Salary?

An employee should take practical steps before initiating formal legal proceedings.

The following process can help establish the amount owed and create a clear record of the dispute.

Step 1 - Calculate Your Outstanding Salary

First, identify the exact amount your employer has failed to pay.

Prepare a month-by-month statement containing:

1. Monthly salary agreed with the employer.
2. Salary actually received.
3. Unpaid salary for each month.
4. Any unexplained deductions.
5. Other wage-related amounts legally payable.

For example, if an employee earns Rs. 60,000 per month and has not received two complete months of salary, the basic outstanding amount would be Rs. 120,000.

This is an illustrative calculation. Any additional entitlement or deduction must be assessed separately.

Step 2 - Collect Employment Documents

Gather documents that establish your employment relationship and the amount of unpaid wages.

Important evidence may include:

• Appointment letter or employment contract.
• Monthly salary slips.
• Bank statements showing salary payments.
• Attendance and duty records.
• Employer emails and WhatsApp messages.
• HR correspondence concerning delayed salary.
• Payroll records or salary statements.
• Any written acknowledgment of outstanding payments.

If you do not have a formal appointment letter, other reliable evidence may help establish your employment and agreed remuneration.

Step 3 - Send a Written Salary Payment Request

Contact your employer or HR department in writing.

Clearly mention the unpaid salary periods, outstanding amount and previous payment requests.

Ask the employer to confirm the payment date and explain any disputed deductions.

Keep a copy of the request and proof of delivery. This record may help if the dispute later proceeds to a Labour Department or competent authority.

Step 4 - Send a Legal Notice If Necessary

If the employer continues to ignore payment requests, a lawyer may prepare a formal legal notice.

The notice should identify the employer, employment details, unpaid salary periods and total outstanding amount.

It should also request payment within a reasonable specified period and explain the legal consequences of continued non-payment.

A legal notice can help clarify the dispute, but it does not replace any mandatory statutory complaint procedure or filing deadline.

Step 5 - Approach the Relevant Labour Authority

If the employer still refuses to pay, identify the competent authority under the applicable provincial or federal wage legislation.

Depending on the circumstances, this may involve:

• The Payment of Wages Authority appointed for the relevant area.
• The relevant Labour Department.
• An Inspector appointed under applicable labour legislation.
• NIRC or another competent forum where the nature of the dispute and statutory jurisdiction justify that route.

Not every unpaid salary claim must be filed directly before a Labour Court or NIRC.

The correct forum should be established before filing.

Step 6 - File the Wage Recovery Application

A wage recovery application should explain the amount claimed and the legal basis for recovery.

It should normally include:

1. Employee and employer details.
2. Employment period and job position.
3. Agreed salary or wage rate.
4. Months for which payment remains outstanding.
5. Total amount claimed.
6. Details of earlier payment requests.
7. Supporting documents and evidence.
8. The relief requested from the authority.

The competent authority may examine the evidence, hear the parties and pass an order under the applicable legislation.

How Long Do You Have to Claim Unpaid Salary?

Limitation periods are important in salary recovery cases.

• Under Section 15 of the Payment of Wages Act, 1936, covered claims generally have to be presented within three years from the date the deduction was made or the payment became due.
• The Sindh Payment of Wages Act, 2015 and the Khyber Pakhtunkhwa Payment of Wages Act, 2013 also provide a three-year application period under their respective provisions.
• The Balochistan Payment of Wages Act, 2021 provides a similar three-year period under Section 16.
• These periods apply to claims falling within the relevant statutory provisions. An authority may admit a delayed application where the applicable law permits it and sufficient cause is established.
• Do not assume that every employment claim has the same limitation period. A separate contractual claim, industrial relations grievance or service matter may follow different rules.

Can an Employer Legally Deduct Salary Without Permission?

Employers cannot make every deduction they choose from an employee's wages.

Payment of Wages legislation generally restricts deductions to those permitted by the relevant law.

Depending on the applicable statute, permitted deductions may include:

• Income tax payable by the employee.
• Deductions for absence from duty.
• Recovery of qualifying salary advances.
• Lawful fines imposed under the prescribed procedure.
• Deductions for proven damage or loss where statutory conditions are satisfied.
• Other deductions specifically permitted by law.

An employer should be able to explain the reason and legal basis for a disputed deduction.

A company policy or verbal instruction does not automatically make an otherwise unlawful deduction valid.

What If an Employer Withholds Salary After Resignation or Termination?

An employee may also face unpaid wages after leaving a job.

This situation requires checking both the earned salary and any additional benefits payable upon termination.

These payments may include:

• Salary earned up to the last working day.
• Notice pay, where legally or contractually payable.
• Eligible unused leave payments.
• Qualifying gratuity.
• Provident fund entitlements.
• Other outstanding contractual or statutory benefits.

The legal rules for final settlement may differ from those governing ordinary monthly salary payments.

For a detailed explanation, read our guide on Final Settlement After Employment Termination.

If the employer has also dismissed the employee unlawfully, a separate termination-related remedy may be available.

Read our guide on How to File a Wrongful Termination Complaint in Pakistan.

Is NIRC the Correct Forum for Unpaid Salary Claims?

Not necessarily.

• NIRC deals with industrial relations matters falling within the federal framework established by the Industrial Relations Act, 2012.
• A straightforward wage-recovery claim may instead fall within the jurisdiction of an appointed Payment of Wages Authority.
• The nature of the claim, establishment coverage, employee classification and applicable legislation must be examined before selecting the forum.

For a detailed explanation, read NIRC vs Labour Courts in Pakistan.

What Documents Should You Prepare for a Salary Recovery Case?

Good documentation can make it easier to establish an unpaid salary claim.

Before approaching a lawyer or competent authority, organise the following:

1. Appointment letter or employment contract.
2. CNIC or other identification documents.
3. Salary slips and payment records.
4. Bank statements showing missing salary credits.
5. Attendance and work records.
6. Employer correspondence and HR emails.
7. Written salary payment requests.
8. Legal notice and proof of delivery, if issued.
9. Month-wise calculation of outstanding wages.
10. Termination or resignation documents, if applicable.

Keep original documents safe and provide copies when submitting an application.

How A.A. Dewan & Co. Can Help With Unpaid Salary Recovery

An unpaid salary dispute requires more than simply calculating the missing amount. The correct legislation, employee status, competent authority and limitation period must also be established.

A.A. Dewan & Co. provides employment and labour law assistance in Pakistan, including:

• Review of unpaid salary and wage disputes.
• Assessment of unlawful salary deductions.
• Preparation of legal notices and payment demands.
• Review of employment contracts and payroll evidence.
• Identification of the appropriate wage recovery authority.
• Legal assistance in qualifying employment and labour proceedings.

Explore our Employment and Labour Law services in Pakistan for further information.

Employees and employers can also seek advice on related matters involving employment contracts, termination disputes and outstanding employment benefits.

Frequently Asked Questions

1. What should I do if my employer does not pay my salary in Pakistan?

Start by calculating your outstanding wages and collecting salary slips, bank statements and employment documents. Send a written payment request and, if necessary, approach the competent authority under the applicable wage legislation.

2. Can I file a complaint against an employer for unpaid salary?

Yes, where the relevant legislation covers the employment relationship and claim. An eligible employee may approach the appointed Payment of Wages Authority or another competent forum, depending on the circumstances.

3. How many years do I have to recover unpaid salary?

Several applicable Payment of Wages laws provide a three-year period for covered wage recovery applications. However, the starting date and applicable procedure must be checked under the relevant statute.

4. Can an employer withhold two or three months of salary?

An employer cannot automatically withhold earned wages without a lawful basis. The employee may have a remedy under the applicable wage-payment legislation.

5. Can I send a legal notice for unpaid salary?

Yes. A lawyer can prepare a formal legal notice identifying the outstanding salary, relevant employment details and requested payment. However, a legal notice should not delay a mandatory statutory filing deadline.

6. Can I recover unpaid salary after resignation?

Potentially, yes. Resignation does not automatically remove the right to claim wages already earned. Any additional final settlement benefits must be assessed separately.

7. Can an employer refuse to pay salary because of company losses?

Financial difficulties do not automatically extinguish an employer's obligation to pay earned wages. The applicable law and circumstances should be examined before determining the available remedy.

8. Can a company deduct salary for damaged equipment?

Only where the deduction is permitted under the applicable law and its procedural requirements are satisfied. An employer cannot automatically deduct any amount merely because it alleges that equipment was damaged.

9. Should I approach NIRC or the Labour Department for unpaid salary?

The correct forum depends on the nature of the dispute and the applicable legislation. A wage recovery claim may fall before a Payment of Wages Authority, while certain industrial relations disputes may fall within NIRC jurisdiction.

10. What if my employer refuses to respond to a salary payment request?

Keep proof of your written request and supporting employment records. You may then seek legal advice about approaching the relevant Labour Department or competent wage recovery authority.

Conclusion

Recovering unpaid salary in Pakistan requires identifying the amount owed, preserving employment records and following the correct legal procedure.

Employees should not ignore repeated salary delays or unexplained deductions. A timely written payment request and properly prepared wage recovery application can help protect their legal rights.

The correct authority and available remedy depend on the applicable provincial or federal legislation, employment category and facts of the dispute.

Legal Disclaimer: This article provides general legal information and is not a substitute for advice on an individual case. Wage legislation, statutory coverage, filing procedures and limitation periods may differ across Pakistan. Always verify the law in force and the relevant notifications before initiating legal proceedings.