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Start hiring nowPublic holidays in Pakistan affect payroll deadlines, rotating shifts, and can change based on the moon. If you run HR, finance, or payroll, you need to know which holidays are official, which bank closures can affect pay runs, and what your team should do when employees work through a holiday.
This guide gives you a practical reference for 2026. It covers Pakistan’s official public holiday calendar, the bank holidays that can affect payroll timing, and the policy decisions that matter most when your employees take the day off or stay on the schedule.
The basics
An important point that should shape your internal process: Islamic holiday dates are anticipated and can shift based on moon sighting.
That matters most for Eid ul Fitr, Eid ul Azha, Ashura, and Eid Milad-un-Nabi. In other words, your calendar is a working draft until the final notification lands. The Cabinet Division’s public holidays page is worth checking when you need to confirm updates.
For employers, the smart approach is simple. Use the official holiday list as your starting point, then build a repeatable process for updates, holiday pay treatment, substitute days, attendance coding, and payroll timing when banks close to the public.
Pakistan 2026 public holidays calendar
Islamic holidays below are based on the official 2026 circular and may shift.
| Holiday | Date | Typical impact on work | Paid day off | If employees work | Notes for employers |
| Kashmir Day | 5 February | Most offices closed | Yes, for employees scheduled to work | Apply your holiday-work rule | Confirm coverage for shift workers and essential operations |
| Pakistan Day | 23 March | Most offices closed | Yes | Apply your holiday-work rule | Keep staffing plans clear for customer-facing teams |
| Eid ul Fitr | 21 to 23 March | Multi-day closure is common | Yes | Apply your holiday-work rule | Dates can change with moon sighting |
| Labour Day | 1 May | Public holiday | Yes | Apply your holiday-work rule | Review any sector-specific obligations |
| Youm-e-Takbeer | 28 May | Public holiday | Yes | Apply your holiday-work rule | |
| Eid ul Azha | 27 to 29 May | Multi-day closure is common | Yes | Apply your holiday-work rule | Dates can change with moon sighting |
| Ashura | 24 to 25 June | Public holiday | Yes | Apply your holiday-work rule | Dates can change with moon sighting |
| Independence Day | 14 August | Public holiday | Yes | Apply your holiday-work rule | |
| Eid Milad-un-Nabi | 25 August | Public holiday | Yes | Apply your holiday-work rule | Date can change with moon sighting |
| Allama Iqbal Day | 9 November | Public holiday | Yes | Apply your holiday-work rule | |
| Quaid-e-Azam Day and Christmas | 25 December | Public holiday | Yes | Apply your holiday-work rule | |
| Day after Christmas | 26 December | Christian employees only | Yes, for eligible employees | Apply your holiday-work rule | Clarify eligibility in writing |
One detail is easy to miss. The 2026 circular says exporters, including manufacturers of exports, may be exempt from these holidays if workers receive overtime on top of their existing salary or wage structure. So while the calendar is national, the way you handle holiday work can still depend on the labor regime, sector, or establishment type that applies to your team.
Bank holidays in Pakistan
Bank holidays matter because payroll timing gets tight fast when funding or approvals slip by a day.
| Bank holiday | Date | What it means for payroll |
| New Year’s Day | 1 January | Plan funding and cutoffs early |
| First day of Ramadan for Zakat deduction | 18 February | Watch bank processing timelines |
| Start of fiscal year | 1 July | Expect public-facing bank closures and plan ahead |
On these bank holidays, banks, DFIs, and microfinance banks stay closed to the public but not to their employees. That means your team should fund early, approve early, and keep a close eye on bank cutoffs.
Who gets the day off
This is one of those questions that feels obvious until two managers answer it differently. Mistakes are costly.
Public holidays
Most employees who are scheduled to work on an official public holiday should get the day off with pay unless the business needs them to work. That baseline should show up in your handbook, employment agreements, payroll coding, and manager guidance.
Optional holidays
Pakistan also recognizes optional holidays for specific religious communities and observances. These holidays are denominational and may be granted at the discretion of the head of organization, with different limits for Muslim and non-Muslim employees. For private employers, the takeaway is simple: define eligibility, explain the approval process, and document each request clearly.
Paid time off and payroll basics
When employees do not work on an official public holiday, include that day as paid time if they were otherwise scheduled to work.
Do not make another assumption that causes problems every year. If a public holiday lands on a weekly rest day, a substitute day is not always automatic. Whether a substitute day applies can depend on your policy, contract terms, sector rules, and the law that applies to that employee.
If employees work on a public holiday
You generally have two options.
Premium pay
In many Pakistani employment frameworks, holiday work attracts enhanced compensation. The exact rate can vary by sector, province, establishment type, and employment terms, so this is not a place to improvise. Build a decision path in advance so payroll knows when to apply premium treatment and when a case needs review.
Substitute day off
A paid substitute day off is also a common approach when employees are required to work on an official holiday. Even when the legal answer is clear, the admin side still matters. Record the day worked, record the substitute day, and make sure payroll and the manager are looking at the same record.
When to use both
If the applicable rule, contract, or policy requires both enhanced pay and a substitute day, treat that as a fixed payroll rule. Don’t leave it to manual interpretation—that’s how inconsistencies creep in.
Practical compliance checklist for employers
Keep this simple, repeatable, and easy to audit.
- Holiday calendar ownership. Assign one owner to update the holiday list every year and track in-year notifications, especially for moon-sighting holidays.
- Employment agreements and policy language. State how you handle public holidays, optional holidays, substitute days, and holiday-work pay.
- Timesheets and attendance records. Make sure holiday work is coded clearly so payroll applies the right treatment.
- Payroll cutoffs and banking days. Align pay dates with bank holidays so employees are paid on time.
- Multi-province considerations. Confirm which labor framework applies if employees work across provinces or under different establishment rules.
Common edge cases to decide in advance
This is where even well-run teams lose time.
- Shift workers and 24/7 operations. Define how coverage is scheduled and what compensation applies when a public holiday falls inside a regular shift pattern.
- Employees on leave during a public holiday. Decide whether the holiday is treated separately or counted inside the leave period, then apply that rule consistently.
- New hires and terminations near a holiday. Set eligibility and any pro-rating logic in advance.
- Remote employees working outside Pakistan. Clarify whether you follow Pakistan holidays, the employee’s local holidays, or a documented combination of both.
What to put in your annual payroll notes
A small note now saves a lot of back-and-forth later.
- Holiday list version. Record the source and the date you updated the calendar.
- Moon-sighting disclaimer. Note that Eid and other Islamic holidays can move and that you will follow the final government notification.
- Holiday-work rule. Document your premium-pay and substitute-day approach.
How an Employer of Record (EOR) can help
An employer of record is a third party that legally employs your team member in Pakistan on your behalf. This allows you to hire without establishing a local entity, avoiding the hidden costs of entity establishment.
The EOR handles salary offers, employment contracts, payroll, tax withholding, statutory benefits, and all ongoing compliance. You manage the day-to-day work normally while the EOR takes care of just about everything else.
For employers testing the market, or those who need to scale quickly, an EOR is usually the right choice. You get to reduce risk, move faster, and know all local laws and regulations will be followed.
Pebl is your partner in Pakistan
If you’ve made it this far, you’ve got your sights set on Pakistan. Maybe you’ve even found the perfect talent. There’s a lot that needs to be taken care of before you can start hiring—researching taxes, finding experts in local labor law, finding a payroll processor, and more. It takes a lot of time and a lot of money. Wouldn’t it be great if there were an easier way?
With Pebl, there is.
Our EOR platform allows you to hire, pay, and manage employees in 185+ countries around the world without setting up your own local entity. That means your new talent starts in days, not months. We handle it all: onboarding, benefits, salary benchmarking, payroll, and compliance with all local regulations. Every public holiday, overtime or double time pay the law requires, we make sure it happens. All you have to do is stay focused on leading your team.
When you’re ready to do things the easy way, let us know.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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