# Minimum wage in Pakistan 2026-27: federal and provincial rates

URL: https://which.pk/business/guides/minimum-wage-pakistan/
Author: Ahtisham
Updated: 22 Oct 2026

## Summary

Pakistan has no single minimum wage: the federal government and each province set their own. From 1 July 2026 it is Rs 40,700 a month in Islamabad and for federal employees, and Rs 43,000 in Sindh, both notified in August 2026. KP announced Rs 45,000 in its budget, but we found no notification. Punjab's last notified rate is Rs 40,000 from July 2025, and Balochistan's current rate is unclear. EOBI contributions are worked out on the minimum wage.

## Key facts

- Islamabad: Rs 40,700 a month
- Sindh: Rs 43,000 a month
- Punjab: Rs 40,000 (no 2026 notice found)
- Effective from: 1 Jul 2026 (Islamabad, Sindh)

There is no single minimum wage in Pakistan in 2026: the federal government and each province set their own. From **1 July 2026** the monthly minimum for unskilled workers is **Rs 40,700 in Islamabad** and **Rs 43,000 in Sindh**, both notified in August 2026. Khyber Pakhtunkhwa (KP) announced **Rs 45,000** in its budget, but we found no notification. Punjab's last notified rate is **Rs 40,000**.

**Highest notified minimum wage, Oct 2026:** Rs 43,000 a month (Sindh, unskilled workers, effective 1 July 2026. Notified 17 Aug 2026, WageIndicator reports.)

## Minimum wage in Pakistan 2026-27 by province

As of 22 October 2026, for an unskilled adult worker, per month:

| Area | 2025-26 | 2026-27 | Status |
|---|---|---|---|
| Islamabad (federal) | Rs 37,000 | **Rs 40,700** | Notified 19 Aug 2026, from 1 Jul 2026 |
| Sindh | Rs 40,000 | **Rs 43,000** | Notified 17 Aug 2026, from 1 Jul 2026 |
| Khyber Pakhtunkhwa | Rs 40,000 | Rs 45,000 announced | Budget proposal, no notification found |
| Punjab | Rs 40,000 | No change found | Rs 40,000 applies until a new notice |
| Balochistan | Unclear | Unclear | See below |

The 2025-26 figures for Punjab, Sindh and KP are from Vialto Partners (October 2025). The 2026-27 notification dates are from WageIndicator, which tracks official notices. We couldn't open the Punjab or Sindh labour department websites to read the notices ourselves.

## What did the 2026-27 federal budget do to the minimum wage?

Finance Minister Muhammad Aurangzeb's budget on 12 June 2026 raised the federal minimum wage **10%, from Rs 37,000 to Rs 40,700** a month, Daily Pakistan and Profit reported.

The Finance Division then issued an office memorandum on **21 August 2026**. It raises the minimum gross salary for federal government employees, including contingent and contract staff in pay scales, to Rs 40,700 from 1 July 2026. Anyone paid less gets the difference as a **Special Allowance**, which is taxable and doesn't count towards pension.

For private workers in Islamabad, WageIndicator reports a separate notification dated 19 August 2026, also effective from 1 July 2026.

**The federal rate is not a national rate:** Minimum wages for industrial and commercial establishments are set by each province for its own area. The Rs 40,700 figure covers federal employees and Islamabad. A worker in Lahore or Peshawar is covered by Punjab's or KP's notification.

## Minimum wage in Sindh 2026

The Sindh cabinet, chaired by Chief Minister Syed Murad Ali Shah, approved a **7.5% increase, from Rs 40,000 to Rs 43,000** for unskilled workers, with effect from 1 July 2026. The new rates apply to all notified industrial and commercial establishments in Sindh. Rates for semi-skilled, skilled and highly skilled workers were also revised, but we couldn't confirm the figures, so we leave them out.

## Minimum wage in Punjab 2026-27

We found **no new Punjab notification** for 2026-27 as of 22 October 2026. Punjab's budget coverage in June 2026 reported pay and pension raises for government employees, but no new minimum wage.

The last confirmed rate is **Rs 40,000 a month from 1 July 2025**, published in the Punjab Gazette, up from Rs 37,000. ARY News also described Punjab as keeping Rs 40,000 in June 2026.

## Minimum wage in KP 2026-27

KP's budget on 19 June 2026 proposed **Rs 45,000 a month**, a Rs 5,000 rise, Aaj News and ARY News reported. That would be the highest in the country. We couldn't find a KP labour department notification, so we can't tell you if it is in force or from which date. Until one appears, Rs 40,000 is the last rate we can confirm.

## What is the minimum wage in Balochistan?

The sources disagree. Vialto listed Balochistan at **Rs 37,000** from 1 July 2024 when it reported the July 2025 rates elsewhere. In June 2026, ARY News and TechJuice said Balochistan had kept Rs 40,000. Balochistan's 2026-27 budget coverage mentions only salaries and pensions. Ask your employer or the provincial labour department which notification it follows.

## Does the new rate apply to July and August pay?

Yes, for the areas that have notified it. Sindh's and Islamabad's rates were notified in August 2026 but apply **from 1 July 2026**. If your July or August pay was below the new rate, ask your employer about the difference in writing and keep your salary slips.

## How does the minimum wage affect EOBI and social security?

EOBI and provincial social security contributions are worked out on the **minimum wage**, not your actual salary, Vialto notes. So when the minimum wage rises, so do the contributions. You pay 1% of it and your employer pays the larger share. See our [EOBI pension guide](/money/guides/eobi-pension/) for what those contributions buy you.

Government employees should also read our guide to the [2026-27 salary increase](/business/guides/salary-increase-2026/), and how [government pension is calculated](/money/guides/government-pension-pakistan/).

More guides: [salary tax calculator](/business/tools/salary-tax-calculator/), [income tax slabs 2026-27](/business/guides/income-tax-slabs-2026-27/), [EOBI pension](/money/guides/eobi-pension/), [Business & Trade](/business/).

## Questions people ask

### What is the minimum wage in Pakistan in 2026?

There is no single national rate. From 1 July 2026 it is Rs 40,700 a month in Islamabad and Rs 43,000 in Sindh. Punjab's last notified rate is Rs 40,000, and KP announced Rs 45,000 in its budget.

### Has Punjab increased the minimum wage for 2026-27?

We found no Punjab notification for 2026-27 as of 22 Oct 2026. The last confirmed rate is Rs 40,000 a month from 1 July 2025.

### Is the minimum wage Rs 40,700 for everyone?

No. Rs 40,700 is the federal figure, for federal government employees and for workers in Islamabad. Each province sets its own rate.

### Does the minimum wage change EOBI contributions?

Yes. EOBI contributions are worked out on the minimum wage, not your actual pay. You pay 1% of it and your employer pays the larger share.

## Sources

- [O.M. No.1(2)R5/2022-PT-0001: Revision of Special Allowance (21 Aug 2026)](https://www.finance.gov.pk/circulars/circular_21082026.pdf), Finance Division (accessed 22 Oct 2026)
- [Minimum Wage Increased in Islamabad, Pakistan from 01 July 2026](https://wageindicator.org/ai/work/minimum-wage/updates/2026/minimum-wage-increased-in-islamabad-pakistan-from-01-july-2026-august-20-2026/), WageIndicator Foundation (accessed 22 Oct 2026)
- [Minimum Wage Increased in Sindh, Pakistan from 1 July 2026](https://wageindicator.org/ai/work/minimum-wage/updates/2026/minimum-wage-increased-in-sindh-pakistan-from-1-july-2026-august-19-2026/), WageIndicator Foundation (accessed 22 Oct 2026)
- [Pakistan raises minimum wage to Rs40,700 in Budget 2026-27 (12 Jun 2026)](https://en.dailypakistan.com.pk/12-Jun-2026/pakistan-raises-minimum-wage-to-rs40700-in-budget-2026-27), Daily Pakistan (accessed 22 Oct 2026)
- [Sindh cabinet approves 7.5 percent increase in minimum wage for workers](https://www.techjuice.pk/sindh-cabinet-approves-7-5-percent-increase-in-minimum-wage-for-workers/), TechJuice (accessed 22 Oct 2026)
- [KP takes lead in raising minimum wage (19 Jun 2026)](https://arynews.tv/kp-takes-lead-in-raising-minimum-wage), ARY News (accessed 22 Oct 2026)
- [KP unveils Rs2.17tr budget with 7% salary, pension hike (19 Jun 2026)](https://english.aaj.tv/news/amp/330460503), Aaj News (accessed 22 Oct 2026)
- [Minimum Wage Increased in Punjab, Pakistan, from 1 July 2025](https://wageindicator.org/ai/work/minimum-wage/updates/2025/minimum-wage-increased-in-punjab-pakistan-from-1-july-2025-september-10-2025/), WageIndicator Foundation (accessed 22 Oct 2026)
- [Pakistan social security update: minimum wages, EOBI and social security (28 Oct 2025)](https://vialtopartners.com/regional-alerts/pakistan-social-security-update-minimum-wages-eobi-and-social-security), Vialto Partners (accessed 22 Oct 2026)