The minimum wage in Pakistan for 2026 ranges from PKR 37,000 to PKR 40,000 per month, depending on the province. Punjab, Sindh, and Khyber Pakhtunkhwa (KPK) raised their rates to PKR 40,000 effective July 1, 2025. Balochistan and the Islamabad Capital Territory (ICT) remain at PKR 37,000. AJK and Gilgit-Baltistan follow separate frameworks.
Whether you’re a worker checking if your employer is paying legally, or a business owner making sure you’re compliant, this guide covers every jurisdiction with exact figures, legal background, and what to do if the law is being violated.
What Is the Minimum Wage in Pakistan Right Now?
The minimum wage in Pakistan is set at PKR 40,000 per month for unskilled workers in the three largest provinces — Punjab, Sindh, and KPK — for fiscal year 2025–26. This applies to formal-sector workers in industrial and commercial establishments.
The federal government announced no new minimum wage increase in the FY2025–26 budget. The federal floor remained at PKR 37,000, unchanged from the previous year. However, three provinces independently raised their rates to PKR 40,000 through provincial gazette notifications issued after the budget announcement.
Federal vs. Provincial Jurisdiction
Pakistan’s 18th Constitutional Amendment devolved labor to the provinces. Each province now sets its own minimum wage through a Minimum Wage Board, not the federal government. The federal rate applies only to the Islamabad Capital Territory (ICT) and certain federally administered areas.
This is why the numbers differ across provinces. There is no single national minimum wage in practice.
Province-wise Minimum Wage 2026
| Province / Territory | Minimum Wage (PKR/Month) | Effective Date | Daily Rate |
|---|---|---|---|
| Punjab | 40,000 | July 1, 2025 | PKR 1,538 |
| Sindh | 40,000 | July 1, 2025 | PKR 1,538 |
| KPK | 40,000 | July 1, 2025 | PKR 1,538 |
| Balochistan | 37,000 | FY 2024–25 rate | PKR 1,423 |
| ICT (Islamabad) | 37,000 | FY 2025–26 (confirmed) | PKR 1,423 |
| AJK | ~37,000 | Media-reported | Not officially published |
| Gilgit-Baltistan | ~32,000–37,000 | Revised July 2024 | Varies |
Note: Balochistan and ICT official gazette notifications were not publicly released at the time of writing. The PKR 37,000 figure is confirmed by Finance Minister Muhammad Aurangzeb’s public statement dated June 10, 2025. AJK and GB figures are based on available media reports and older notifications — verify with the relevant labor department for the most current figure.
Punjab Minimum Wage 2026
Punjab officially notified its minimum wage of PKR 40,000 on September 8, 2025, under the Punjab Minimum Wages Act, 2019. The notification covers all unskilled workers in private industrial and commercial establishments.
Key details from the Punjab notification:
- Monthly wage: PKR 40,000 (based on 26 working days)
- Daily wage: PKR 1,538
- Hourly wage: PKR 192
- Employers may deduct up to PKR 100 per meal, PKR 1,800/month for transport, and PKR 2,000/month for accommodation — but only where these are genuinely provided.
Sindh Minimum Wage 2026
Sindh raised its minimum wage to PKR 40,000 per month for unskilled workers, effective July 1, 2025. The legal basis is the Sindh Minimum Wages Act, 2015.
Sindh is the only province with documented separate wage rates for certain skilled workers in specific industries. These vary by trade and are set through supplementary notifications. If you work in a skilled trade in Sindh, contact the Sindh Labor Department directly to check the rate applicable to your category.
The Sindh Employees Social Security Institution (SESSI) also uses the minimum wage figure as the contribution base for employer social security deductions.
Khyber Pakhtunkhwa (KPK) Minimum Wage 2026
KPK’s minimum wage is PKR 40,000 per month for unskilled workers, effective July 1, 2025. The governing law is the KPK Minimum Wages Act, 2013.
KPK’s labor department has been more consistent in publishing official gazette notifications compared to Balochistan. The PKR 40,000 figure is backed by both the KPK notification and the Employers’ Federation of Pakistan.
Balochistan Minimum Wage 2026
Balochistan’s minimum wage stands at PKR 37,000 per month — the same figure set in FY2024–25. The province did not issue a new upward notification for FY2025–26 at the time of writing.
The governing law is the Balochistan Minimum Wages Act, 2021. EOBI contributions for Balochistan workers continue to be calculated on PKR 37,000.
Islamabad Capital Territory (ICT) Minimum Wage 2026
The federal minimum wage — and therefore the ICT rate — is PKR 37,000 per month, confirmed by Finance Minister Aurangzeb after the FY2025–26 budget. The federal government chose not to raise it, despite pressure from political parties including the PPP, which had called for an increase to PKR 50,000.
ICT falls under federal jurisdiction, meaning the Ministry of Overseas Pakistanis & Human Resource Development oversees wage compliance here.
AJK and Gilgit-Baltistan Minimum Wage 2026
Both AJK and Gilgit-Baltistan operate under their own labor frameworks.
Gilgit-Baltistan revised its minimum wage effective July 2024 under the GB Minimum Wages Act, 2019. Official figures for FY2025–26 had not been publicly released at the time of writing, but the rate is generally aligned near the federal floor.
AJK has its own Minimum Wages Board. Media reports indicate rates close to PKR 37,000, but no official 2025–26 notification was publicly available for verification.
Workers in these territories should check directly with the GB or AJK Labor Department for confirmed current figures.
Unskilled vs. Skilled Workers — Is There a Difference?
Yes, but the difference is often not clearly published.
The PKR 40,000 and PKR 37,000 figures apply to unskilled adult workers. Skilled, semi-skilled, and highly skilled categories exist in law — but most provinces have not issued separate official wage tables for these categories in FY2025–26.
In practice:
- Unskilled: Factory floor workers, loaders, helpers, cleaners — minimum PKR 37,000–40,000/month
- Semi-skilled: Machine operators, drivers, security guards — typically 10–20% above the unskilled floor
- Skilled: Electricians, plumbers, welders, mechanics — negotiated above minimums, with Sindh having the most structured approach
- Highly skilled: Technical supervisors, specialized tradespeople — set through collective bargaining or sectoral agreements
If you’re curious where minimum wage fits relative to what most workers actually earn, the average salary in Pakistan sits significantly higher — around PKR 60,000–75,000 per month in the formal sector.
How Is Minimum Wage Set in Pakistan?
Role of Minimum Wage Boards
Each province has a Minimum Wage Board composed of three parties: government representatives, employers, and workers. These boards review wage adequacy and submit recommendations to the respective provincial government.
The boards do not act independently. They only begin a review when the government formally refers the matter to them. After deliberation, they submit recommendations. The government then issues a gazette notification, which makes the rate legally binding.
This process is why wage updates are often delayed. In some provinces, notifications are published months after the fiscal year begins.
Federal Budget vs. Provincial Notifications
The federal budget speech often sets the tone — but provinces do not have to follow it. In FY2025–26, the Finance Minister announced PKR 37,000 as the federal minimum. Punjab, Sindh, and KPK then issued their own notifications raising the rate to PKR 40,000.
Workers in ICT and Balochistan received no increase. This gap matters — a worker in Lahore now has a minimum wage PKR 3,000/month higher than a worker doing the same job in Islamabad.
Recent Increases — What Changed in 2025–26?
Here’s a clear picture of how the minimum wage has moved:
| Fiscal Year | Punjab / Sindh / KPK | Balochistan / ICT |
|---|---|---|
| FY2022–23 | PKR 25,000 | PKR 25,000 |
| FY2023–24 | PKR 32,000 | PKR 32,000 |
| FY2024–25 | PKR 37,000 | PKR 37,000 |
| FY2025–26 | PKR 40,000 | PKR 37,000 |
The PKR 40,000 figure represents an 8.1% increase from the previous year for workers in Punjab, Sindh, and KPK. Over three years, the unskilled minimum wage has risen 60% — from PKR 25,000 to PKR 40,000 in these provinces.
However, inflation over the same period ran significantly higher. In real terms, the purchasing power of minimum wage workers has declined.
Who Is Covered by Minimum Wage Laws?
Minimum wage laws in Pakistan apply to workers employed in formal industrial and commercial establishments. This includes:
- Factory workers
- Office staff in registered businesses
- Shop employees
- Security guards
- Transport workers employed by registered companies
Excluded Categories
Several categories fall outside standard minimum wage protection:
- Domestic workers (house helpers, cooks, drivers employed by households) — no province covers these workers under its minimum wage act
- Agricultural laborers — not covered under industrial minimum wage laws; some provinces have separate agricultural wage rates
- Apprentices — exempted or covered under a separate apprenticeship framework
- Workers in very small establishments — some provincial laws exempt businesses below a certain employee threshold
The informal sector — which employs a large share of Pakistan’s workforce — also sits largely outside enforcement reach.
What Happens If an Employer Pays Below Minimum Wage?
Paying below the notified minimum wage is a legal violation. Penalties vary by province but typically range from PKR 10,000 to PKR 50,000 per violation, with repeat offenders facing higher fines or prosecution.
Provincial labor inspectors are authorized to inspect workplaces, check payroll records, and issue notices. In serious cases, cases go before a Labor Court.
Workers also have the right to file for back pay — the difference between what they were paid and what they were legally owed. This can cover months or years of underpayment.
EOBI contributions are also linked to minimum wage. An employer paying below minimum wage is likely also underpaying EOBI. You can use the EOBI calculator to verify whether your contributions are being calculated correctly based on current rates.
How to File a Minimum Wage Complaint
If your employer is paying below the notified minimum wage, follow these steps:
- Document everything. Gather your pay slips, bank statements, employment contract, and any written communication about your salary.
- Contact the Provincial Labor Department. Each province has a labor helpline and district labor offices. Go to the office covering the district where you work.
- File a written complaint. State your name, employer name, address, the amount being paid, and the legal minimum wage. Attach your documents.
- Request a labor inspection. After receiving your complaint, the department can send a labor inspector to your workplace.
- Approach a Labor Court if needed. If the department’s intervention does not resolve the issue, you can file a case directly in the Labor Court for recovery of unpaid wages.
Workers are legally protected from dismissal for filing a legitimate wage complaint. If you’re dismissed after filing, that constitutes an unfair labor practice under provincial labor laws.
EOBI and Your Minimum Wage
Every registered employer must contribute to the Employees’ Old-Age Benefits Institution (EOBI). For FY2025–26, contributions are calculated as follows:
For workers in Punjab, Sindh, and KPK (based on PKR 40,000):
- Employer contributes: 5% = PKR 2,000/month
- Employee contributes: 1% = PKR 400/month
For workers in Balochistan (based on PKR 37,000):
- Employer contributes: 5% = PKR 1,850/month
- Employee contributes: 1% = PKR 370/month
These deductions are mandatory. If your pay slip shows no EOBI deduction, your employer may not be registering you properly. Use the EOBI calculator to check exact figures based on your wage.
Minimum Wage vs. What You Actually Take Home
The minimum wage figure is your gross pay — before deductions. Your actual take-home pay will be slightly lower once EOBI and any income tax are applied.
At PKR 40,000/month (PKR 480,000/year), you fall well below the taxable income threshold for salaried individuals in Pakistan, so income tax likely won’t apply. But you can confirm this using the income tax calculator for a quick check.
If you want to work out your full take-home salary based on gross pay, use the salary calculator — it factors in EOBI and applicable deductions so you know exactly what lands in your account.
Frequently Asked Questions
What is the minimum wage in Pakistan in 2026? The minimum wage in Pakistan for 2026 is PKR 40,000/month in Punjab, Sindh, and KPK. Balochistan and ICT remain at PKR 37,000/month. These rates apply to unskilled adult workers in formal employment.
Did the minimum wage increase in the 2025–26 budget? The federal government did not announce a new increase in the FY2025–26 budget. The federal rate stayed at PKR 37,000. However, Punjab, Sindh, and KPK individually raised their provincial rates to PKR 40,000 through separate gazette notifications.
Does the minimum wage apply to domestic workers? No. Domestic workers employed by private households are not covered under provincial minimum wage acts. They have no statutory minimum wage protection in any province as of 2026.
What is the daily minimum wage in Pakistan for 2026? In Punjab, Sindh, and KPK, the daily minimum wage works out to PKR 1,538, based on 26 working days per month. In Balochistan and ICT, it is approximately PKR 1,423.
What law governs minimum wage in Pakistan? At the provincial level: Punjab Minimum Wages Act 2019, Sindh Minimum Wages Act 2015, KPK Minimum Wages Act 2013, Balochistan Minimum Wages Act 2021, and GB Minimum Wages Act 2019. The older Minimum Wages Ordinance 1961 still provides the foundational federal framework.
Is minimum wage the same as the government pay scale? No. The minimum wage applies to formal private-sector workers. Government employees are paid on a separate structure — see the government pay scale guide for 2025 for a full breakdown of BPS pay grades.
Conclusion
The minimum wage in Pakistan for 2026 is PKR 40,000/month in Punjab, Sindh, and KPK — and PKR 37,000/month in Balochistan and ICT. These figures apply to unskilled adult workers in registered formal establishments. AJK and GB follow their own frameworks, with rates close to the federal floor.
If your employer is paying below these amounts, you have the right to file a complaint with the provincial labor department and recover unpaid wages through a Labor Court.
Minimum wage is the legal floor — not the ceiling. If you want to move beyond it, understanding how to negotiate your compensation is worth your time. The salary negotiation guide for Pakistan covers practical strategies that work in the local job market.
