Punjab Moves to Formalize Domestic Work With New Contract Pilot

Officials and stakeholder groups have welcomed the agreement as a practical step toward improving standards in one of the province’s most vulnerable employment sectors.

Domestic workers across Punjab could soon benefit from greater job security and stronger workplace protections following a new agreement to introduce employment contracts in the sector. The initiative brings together the Punjab Labour Department, the Domestic Workers Employers Association (DWEA), and the United Domestic Workers Federation (UDWF), which have jointly committed to promoting and monitoring the use of formal employment contracts for domestic workers throughout the province.

Supported by the International Labour Organization (ILO) through its Promoting Rights and Social Inclusion through Organization and Formalization (PRS) Phase 2 project, the move is expected to help create clearer employment relationships between workers and household employers while encouraging greater formalization of the sector.

Contracts Expected to Improve Working Conditions

Domestic workers play an essential role in supporting households and providing care services, yet many continue to work without written agreements or access to social protections. This often leaves workers exposed to problems such as low wages, long working hours, unsafe conditions, exploitation, and limited options for resolving workplace disputes.

Punjab has already introduced several measures to improve conditions for domestic workers. Earlier this year, authorities notified a minimum wage of PKR 40,000 for domestic workers. Changes were also introduced to make it easier for workers to register themselves with the Punjab Employees Social Security Institution (PESSI) through lower monthly contribution requirements.

The latest initiative builds on those reforms by launching a model employment contract under the Punjab Domestic Workers Rules 2025. The contract is designed to provide clear terms covering wages, working hours, responsibilities, and other employment conditions.

Government, Workers and Employers Back the Initiative

Officials and stakeholder groups have welcomed the agreement as a practical step toward improving standards in one of the province's most vulnerable employment sectors. Punjab Labour Department Director General Kalsum Haye described the agreement as an important milestone in the effort to move domestic work from informality toward greater dignity and protection. She said the partnership demonstrates a shared commitment to implementing the Domestic Workers Act 2019 and improving safeguards for workers. United Domestic Workers Federation General Secretary Arooma Shahzad said many domestic workers have spent years without employment security or formal protections. She noted that the pilot contract could help ensure fair pay, defined working hours, and greater respect in the workplace.

Representing employers, DWEA Secretary General Ghulam Mustafa Tabbasum said formal contracts would provide clarity and security for both workers and households while helping employers better understand their responsibilities. The next phase of the project will involve working with housing societies to test the contracts and encourage wider adoption. Efforts are also continuing to expand social security coverage for domestic workers through contributions from both employers and workers. The PRS Phase 2 project, funded by the Government of Japan, supports efforts to reduce gender inequality and improve working conditions in the informal economy across India, Nepal, and Pakistan.