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The Finance Base
FY2025–26

Pakistan’s Federal Minimum Wage Stays at Rs. 37,000 for FY2025–26, While Punjab and Sindh Set Rs. 40,000

The federal minimum wage floor stayed at Rs. 37,000 for FY2025–26, while Punjab and Sindh set Rs. 40,000 monthly rates for covered workers. Jurisdiction and worker category determine which minimum applies.

By TheFinanceBase Team 4 min read
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The federal government kept its minimum wage floor at Rs. 37,000 for FY2025–26, unchanged from the previous fiscal year, according to a written answer to the National Assembly. That figure is not a single minimum wage for every worker in Pakistan: provincial rules vary, and Punjab and Sindh set Rs. 40,000 monthly rates for covered workers during FY2025–26.

The distinction matters for workers and employers checking which rate applies. The federal figure concerns specified federal employees; provincial minimum-wage laws and notifications determine rates for covered workers in those jurisdictions.

What is Pakistan’s minimum wage for FY2025–26?

There is no one figure in the available official material that can safely be described as the minimum wage for every worker nationwide. The National Assembly answer says the federal government retained Rs. 37,000 for FY2025–26. It also identifies provinces and the administrations of Islamabad Capital Territory (ICT), Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB) as having roles in notification and coverage, with their labour departments responsible for implementation. The answer says minimum-wage laws cover workers in industry and commercial establishments and that provinces may set rates by worker category. National Assembly of Pakistan, written answer.

Accordingly, Rs. 37,000 describes the federal government’s decision, not a confirmed uniform rate for all jurisdictions or occupations. The available sources establish higher rates in Punjab and Sindh for FY2025–26, but do not verify the exact current rates and category coverage for Balochistan, ICT, AJK, or GB.

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Who does the federal Rs. 37,000 floor cover?

A Finance Division memorandum dated 27 August 2024 raised the minimum wage/gross-salary floor from Rs. 32,000 to Rs. 37,000 with effect from 1 July 2024. It covered federal civil employees and civilians paid from Defence estimates, including contingent-paid staff and contract employees against civil posts in Basic Pay Scales on standard terms. Employees below the specified gross amount were to receive the difference as a Special Allowance. The memorandum’s employee scope is not automatically the same as the coverage of provincial labour laws. Finance Division memorandum.

What changed in Punjab and Sindh?

Jurisdiction and source FY2025–26 rate and scope Status and basis
Federal government — National Assembly written answer Rs. 37,000; the answer describes the retained federal minimum wage, not a universal rate for all workers. Unchanged from FY2024–25. The previous increase took effect on 1 July 2024 for specified federal employee groups.
Punjab — Dawn report on the provincial notification Rs. 40,000 per month across the province, reported on a 26-working-day basis. Announced in June 2025 and notified on 10 September 2025. Dawn calculated the monthly amount as Rs. 1,538.46 per day for eight hours of daily labour; that is the report’s calculation, not a separate rate established here. Dawn, 10 September 2025.
Sindh — provincial notification Rs. 40,000 per month for unskilled adult and adolescent workers in industrial and commercial establishments. Notification dated 28 July 2025, effective 1 July 2025. It applies to registered and unregistered establishments throughout the province. Government of Sindh Labour & Human Resources Department notification.

Punjab’s notification came after the June budget announcement; the announcement and issued notification are distinct steps. Dawn reported the Punjab labour minister’s statement that field formations would “ensure strict implementation of the minimum wage notification.” That is a stated intention, not evidence of compliance outcomes.

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Sindh rates by worker category

A Provincial Assembly of Sindh answer lists the following monthly rates for 2025. Because another 2025 news report gives different skilled-category figures, this table uses the Assembly answer’s schedule rather than combining figures from different snapshots. Provincial Assembly of Sindh answer.

Worker category Monthly minimum
Unskilled Rs. 40,000
Semi-skilled Rs. 41,380
Skilled Rs. 49,628
Highly skilled Rs. 51,745

The Sindh notification also specifies equal pay for male and female workers in the covered category and says piece-rate arrangements must enable at least Rs. 192 per hour on any working day. These terms concern the notification’s covered workers, not an additional nationwide hourly minimum.

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Why did the federal government leave the figure unchanged?

The National Assembly answer attributed the decision to “the sharp decline in inflation, improved purchasing power stability, fiscal and employment considerations.” This is the government’s stated rationale, not independent evidence that purchasing power improved or that employment was preserved. The answer reports Rs. 37,000 in FY2025–26, unchanged from FY2024–25 — National Assembly of Pakistan, 2026 (parliamentary answer). It also reports 4.5% FY2025 inflation — Government of Pakistan, 2026 (as cited in the National Assembly answer). The source extract does not expose a precise publication date, so no more specific date is assigned here. National Assembly answer.

Federal wage figures reported for earlier fiscal years

The parliamentary answer’s table reports these figures as the federal minimum wage history:

Fiscal year Figure reported
2020–21 Rs. 17,500
2021–22 Rs. 20,000
2022–23 Rs. 25,000
2023–24 Rs. 32,000
2024–25 Rs. 37,000
2025–26 Rs. 37,000; the answer reports a 0% change

The same answer reports average inflation of 5.5% for July–February and rural and urban food inflation of -0.9% and 1.6%, respectively, for that period. These are figures as reported in the parliamentary answer, with the periods stated there; they are not a separate assessment of the wage decision.

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How to work out which minimum applies

  1. Identify the employer and jurisdiction. The federal Rs. 37,000 floor described in the 2024 memorandum applies to specified federal employee groups. For other covered workers, check the relevant provincial or territorial rules.
  2. Check the worker category and establishment coverage. Minimums can differ by skill category and by the law or notification governing the workplace. Sindh, for example, lists separate monthly amounts for unskilled, semi-skilled, skilled, and highly skilled workers.
  3. Use an issued notification, not only an announcement. Punjab’s Rs. 40,000 increase was announced in June 2025 but notified on 10 September. For Sindh’s current notices, consult the Sindh Minimum Wages Board notifications register.
  4. Ask the responsible labour department about coverage or compliance. The National Assembly answer assigns implementation roles to the relevant labour departments. The available material does not establish nationwide enforcement or compliance results.

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