Punjab Labour Code 2026: Wages Due by the 7th, Paid by Bank Transfer With a Pay Slip
The Punjab Labour Code 2026 says monthly wages are due before the 7th, paid into a bank account with a pay slip. See the fine limits, deductions and penalties.
Under the Punjab Labour Code 2026, a monthly wage must be paid before the seventh day of the next month, by bank transfer, with an itemised pay slip, and final dues are due within two working days of leaving a job. The Code was enacted on 10 February 2026, and reports in late May 2026 said the Punjab Government has notified it as in force, though we could not confirm the date from the Gazette.
Many Punjab workers still get cash in an envelope, a late payment or no slip at all. We read the wage chapter of the Code, Act IX of 2026, on 21 October 2026 to see what changes for pay. The Code covers all workplaces in Punjab, including government workplaces, but leaves out civil servants, the defence services and the police.
The Code is law, and its start was reported in late May 2026
The Governor assented on 10 February 2026, after the Assembly passed the Code on 4 February. Section 1(3) says it starts on a date the Government notifies in the Gazette. Reports in late May 2026 said the Government notified the Code as in force. We could not open the Gazette to confirm the date, so check it before relying on the dates below.
If the start is confirmed, an employer can be held to the new wage chapter. If not, it still shows what the province has agreed should be the rule. The current legal floor is the notified minimum wage, which is Rs 40,000 a month in Punjab for 2026-27.
Monthly wages are due before the seventh day of the next month
Section 165 sets the deadline by wage period. Daily wages are paid at the end of the shift. Weekly wages are paid on the last working day before the rest day. Monthly wages are paid before the seventh day of the following month.
| Wage period | Payment deadline |
|---|---|
| Daily | End of the working day or shift |
| Weekly | Last working day before the weekly rest day |
| Fortnightly | Before the end of the second day after the fortnight |
| Monthly | Before the expiry of the seventh day of the next month |
| On leaving the job | Within two working days of termination |
The employer fixes the wage period, but it cannot be longer than one month. The Chief Inspector can also set a different reasonable time limit. If an employer goes bankrupt, workers rank as preferential creditors for unpaid pay.
Wages must go into a bank account, and the employer pays the transfer cost
Pay is in rupees, credited to the employee's bank account. If a worker has no account, the employer and the worker must both help open one. The employer carries the cost of transferring the money. Vouchers or coupons instead of money are banned.
That is a big shift for small factories and shops that pay in cash. A worker with a bank record can also prove what was paid and when, which matters in any later dispute. A mobile wallet is not mentioned in the section we read, so we cannot say whether it counts.
Every payment needs a pay slip that shows the full calculation
Section 165(15) requires an itemised statement with each payment. It must show basic wage, allowances, gross pay, deductions, fines, net pay, overtime, bonuses, the total paid and the balance of annual, casual and sick leave.
- Ask for the slip on the day the wage is paid.
- Check the basic wage against the notified minimum wage.
- Check each deduction against the limits below.
- Check that overtime hours and leave balance are listed.
- Keep every slip, paper or digital, together with the bank statement.
Fines and deductions from wages face hard limits
Fines need prior authorisation, a posted notice and a chance to explain. They cannot pass 3 percent of the wage period's pay, cannot be charged to anyone under 18, and cannot be recovered after 120 days. Deductions for damage must not exceed the actual loss.
Other deductions are allowed only if listed in section 168(2). A deduction to get or keep a job is banned. Absence deductions cannot exceed the share of the wage period missed. If ten or more workers stay away together without notice, up to eight days of pay may be deducted.
Paying below the minimum wage can cost an employer 2 to 10 penalty units
Sections 380 and 381 set fines of 2 to 10 penalty units for paying below the minimum wage or breaking the wage chapter. One unit equals the monthly unskilled minimum wage. At Rs 40,000 that would be Rs 80,000 to Rs 400,000.
That rupee range is our own arithmetic, since the unit is whatever rate applies when the offence happens. For a minimum wage breach the court must also order the shortfall paid. A repeat offence doubles the fine. A worker, a union or an inspector can bring the complaint. For a claim under today's laws, see how to claim unpaid wages in a Punjab labour court.
Common questions about Punjab Labour Code wage rules
Is the Punjab Labour Code 2026 in force now?
Reportedly yes. It was enacted on 10 February 2026, and section 1(3) says it starts on a date the Government notifies. Reports in late May 2026 said that notice was issued, but we could not open the Gazette to confirm the date.
When must my monthly salary be paid?
Before the seventh day of the following month under section 165. Final dues are due within two working days of leaving.
Can my employer pay me in cash?
Under the Code, no. Section 165 says wages are credited to the employee's bank account, and the employer bears the transfer cost.
How much can an employer fine me?
A total of 3 percent of that wage period's pay at most, and never for workers under 18. Fines cannot be recovered after 120 days.
Does the Code cover government employees?
It applies to government workplaces but excludes civil servants under the Punjab Civil Servants Act, the defence services and the police.
Where do I complain about unpaid wages today?
Start with the provincial labour department. Its notices are on the Punjab Labour Department site, and the court route is in the Punjab labour court guide above.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 21 October 2026. We read the wage chapter (sections 165 to 173) and the penalty chapter (sections 364 to 392) of the Punjab Labour Code 2026, Act IX of 2026, published in the Punjab Gazette (Extraordinary) of 10 February 2026, from a full-text copy of the Act. The Punjab laws portal is at punjablaws.punjab.gov.pk. We could not open the official Gazette copy or the Labour Department page, so check the commencement notice before relying on any date. The rupee fine range is our arithmetic.
About the author
Public Services and Education Journalist
Fajr Riaz is a journalist and content writer at Pakistan Era, based in Lahore. She covers the questions people meet in everyday life in Pakistan: how a public service works, what a change in the rules means, and where to find a reliable answer.
