Although we know that effort-reward imbalance (ERI) fosters employee experience of burnout, little is known about the temporal dynamics and boundary conditions of the ERI-burnout relationship. Drawing from ERI and conservation of resources theories, our paper examines: (a) the longitudinal relationship between ERI and job burnout in the form of emotional exhaustion, depersonalization, and perceived lack of personal accomplishment and (b) the moderating role of sensitivity to terrorism (STT) on the relationship between ERI and job burnout. Cross-lagged analyses of two-time data with a time lag of 6 months were collected from 432 Pakistani employees working in terrorism-ridden cities. Our results show that ERI positively predicts employee job burnout in terms of emotional exhaustion, depersonalization, and perceived lack of personal accomplishment. STT was also found to strengthen the effects of ERI on job burnout. Overall, our findings bring together three different streams of literature (i.e., ERI, burnout, and terrorism management). The implications for management and guidelines for future research are outlined.