How this is calculated
The 14-day entitlement
Every worker who completes 12 months of continuous service is entitled to 14 consecutive days of paid annual leave in the following 12-month period. Unused leave can be carried forward, but the carry-forward itself is capped at 14 days — meaning you can accumulate at most 28 days before it's forfeited or paid out.
When it gets paid out
If you're discharged, dismissed, or resign before using your accrued annual leave, your employer must pay you for those unused days. Under the Factories Act, half of your leave pay must also be advanced before a leave period begins, if you do take the time off.
On the daily rate divisor
The law itself only specifies pay at "the daily average amount" without fixing an exact formula. This calculator uses gross monthly salary ÷ 30, the most commonly applied convention in Pakistani payroll practice — but this isn't a fixed statutory number the way the FBR tax slabs are, so it's worth confirming the exact method your employer uses.
Assumptions & limits
Applies to workers under the Factories Act and Shops & Establishments legislation — mineworkers (Mines Act) and newspaper employees follow different formulas not covered here. Figures are for guidance only, not legal advice.