Punjab pilots employment contracts for domestic workers

Domestic workers in Punjab are set to benefit from stronger labour protections and more secure employment relationships following a landmark agreement to pilot employment contracts in the sector, according to a press release by the International Labour Organization (ILO). Signed on 12 June 2026 in Lahore, the agreement was concluded by the Punjab Labour Department, the Domestic Workers Employers Association (DWEA) and the United Domestic Workers Federation (UDWF). The initiative is supported by the ILO through its Promoting Rights and Social Inclusion through Organization and Formalization (PRS) Phase 2 project. The three parties committed to promoting and monitoring the rollout of employment contracts for domestic workers across Punjab. The agreement marks an important step towards formalizing domestic work and advancing decent work in the province.

Domestic workers play a vital role in households and the care economy, yet many continue to work informally without written contracts, social protection or access to effective grievance mechanisms. As a result, many remain vulnerable to low pay, excessive working hours, exploitation, violence and harassment. In recent years, sustained collaboration between government, employers and workers has produced important progress in Punjab. This includes the notification of a minimum wage of PKR 40,000 for domestic workers in 2025. Measures were also introduced enabling self-registration with the Punjab Employees Social Security Institution (PESSI) through reduced monthly social security contributions.

Building on these efforts, the parties agreed to launch and pilot the model employment contract provided under the Punjab Domestic Workers Rules 2025. The agreement commits all three parties to promoting and monitoring the rollout of the contracts. It will help domestic workers and employers establish clearer and more secure employment relationships. The initiative aligns with the Domestic Workers Act 2019, which protects vulnerable members of the workforce. It reflects a tripartite approach to advancing formalization.

“This agreement is not merely a piece of paper; it is a bridge from informality to dignity,” said Ms Kalsum Haye, Director General of the Punjab Labour Department. Arooma Shahzad, General Secretary of the UDWF, noted that the pilot contract helps guarantee fair compensation, defined working hours and basic respect. Ghulam Mustafa Tabbasum, Secretary General of the DWEA, said formalizing the sector brings clarity, professionalism and security for both households and workers. He added that employers want to do the right thing but need clear guidance. The statements underline shared commitment across government, employers and workers.

As a next step, the DWEA and UDWF will work with housing societies to pilot the contracts and promote more formal employment relationships between domestic workers and household employers. Efforts are also underway to expand social security coverage for domestic workers through employer and worker contributions to PESSI. The PRS Phase 2 project, launched in December 2022 with funding from the Government of Japan, supports the reduction of decent work deficits and gender inequality in the informal economy. It promotes the transition to formality in India, Nepal and Pakistan. The project targets the construction sector in India and the domestic and sanitation sectors across all three countries.