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. Supported by the International Labour Organization (ILO) through its Promoting Rights and Social Inclusion through Organization and Formalization (PRS) Phase 2 project, the initiative marks an important step towards advancing decent work and formalization for domestic workers in the province.
The agreement was signed by the Punjab Labour Department, the Domestic Workers Employers Association (DWEA) and the United Domestic Workers Federation (UDWF), who committed to promoting and monitoring the rollout of employment contracts for domestic workers across Punjab.
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.
Through sustained collaboration between government, employers and workers, important progress has been made in recent years to strengthen protections for domestic workers in Punjab. This includes the notification of a minimum wage of PKR 40,000 for domestic workers in 2025 and measures enabling self-registration with the Punjab Employees Social Security Institution (PESSI) through reduced monthly social security contributions.
Building on these efforts, representatives of government, employers' and workers' 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, helping domestic workers and employers establish clearer and more secure employment relationships.
"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. "By bringing the government, employers and workers to the same table, we are taking another practical step towards advancing decent work for domestic workers in Punjab through the implementation of the Domestic Workers Act 2019, which is dedicated to protecting some of the most vulnerable members of our workforce."
Arooma Shahzad, General Secretary of the United Domestic Workers Federation highlighted, "For decades, domestic workers have worked without security or recourse. This pilot contract helps guarantee fair compensation, defined working hours and basic respect. This achievement reflects the commitment of workers, employers and government to improving working conditions for domestic workers across Punjab."
Ghulam Mustafa Tabbasum, Secretary General of the Domestic Workers Employers Association emphasized, "Formalizing this sector brings clarity, professionalism and security for both households and workers. Employers want to do the right thing, but they need clear guidance. We are proud to support this important step alongside our worker counterparts and the government."
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 Promoting Rights and Social Inclusion through Organization and Formalization (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 while promoting 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.
