Pakistan does not have a single national minimum wage. Each province sets its own under a provincial minimum wages act, and the federal government sets a rate for the Islamabad Capital Territory. Every budget season the figures change, announcements and notifications do not always arrive together, and many workers are left unsure what they are legally owed. This guide pulls together the latest reported rates for FY 2026-27, explains how to convert them to daily and hourly pay, and sets out what you can do if your employer pays less.
Minimum wage by province for FY 2026-27
The table shows the figures reported around the 2026-27 budgets. Treat budget announcements as the direction of travel and check the official notification for the final legal rate, since a notification can lag the budget by weeks or months. In Punjab, for example, the increase to Rs 40,000 announced in June 2025 was only notified in September 2025.
| Region | Monthly minimum wage (unskilled) | Status / notes |
|---|---|---|
| Islamabad Capital Territory (federal) | Rs 40,700 | Raised about 10% from Rs 37,000 in the federal budget 2026-27. |
| Sindh | Rs 43,000 | Announced in the Sindh budget 2026-27, up from Rs 40,000. |
| Punjab | Rs 40,000 | Notified in September 2025 and kept at Rs 40,000 in the 2026-27 budget period. |
| Khyber Pakhtunkhwa | Rs 45,000 (proposed) | Rs 40,000 was notified in September 2025; the 2026-27 budget proposed Rs 45,000. |
| Balochistan | Rs 40,000 (reported) | Reported as unchanged at budget time; some sources cite Rs 40,700, so confirm the notification. |
The minimum wage applies to unskilled adult workers in covered industrial and commercial establishments. Skilled and semi-skilled categories are paid more, and some provincial notifications set separate rates for them.
Converting the monthly figure to daily and hourly pay
Provincial notifications usually define the monthly wage on a 26-day working month. At Rs 40,000 a month that equals about Rs 1,538 a day for an eight-hour shift, or roughly Rs 192 an hour. At Rs 43,000 it works out to about Rs 1,654 a day and Rs 207 an hour, and at Rs 40,700 about Rs 1,565 a day. Daily-wage workers, part-time staff and piece-rate workers should multiply the daily or hourly rate by the days or hours actually worked to check whether they have been paid fairly.
Who is covered, and who is not?
Coverage depends on the provincial law. In general the rules apply to industrial and commercial establishments, and some provinces apply them from a minimum number of employees. Domestic workers, agricultural workers and very small shops are frequently outside effective enforcement even where the law technically reaches them, which is one reason reported pay in these jobs often sits below the notified minimum. Our salary pages for roles such as security guard, office assistant and driver include a minimum wage note for exactly this reason: reported averages for informal work can be lower than the legal floor.
Enforcement: the gap between the law and the payslip
Press reports have repeatedly documented that notified minimum wages are not always paid in practice, including by some government departments that hire daily-wage staff. Labour inspectors are responsible for checking compliance, but inspections are limited. For a worker, the first step is to know the rate, keep a record of days worked and payments received, and ask for a written wage slip or appointment letter. A written record is the strongest evidence if a complaint is needed.
What to do if you are paid below the minimum wage
- Check the rate and coverage. Find the current notification for your province and make sure your employer falls under it.
- Raise it in writing. A polite written request to HR or the owner, referring to the notification, often resolves the issue.
- Contact the labour department. Each province has a labour department and a helpline or complaint process, and workers' unions or legal aid groups can help.
- Keep records. Save attendance records, messages and any proof of payment amounts.
Minimum wage versus a living wage
The legal minimum is a floor, not a measure of what a household needs. A single worker in a large city may find Rs 40,000 a month stretched by rent, transport and food costs, and a family on a single minimum-wage income faces real pressure. Policy researchers have argued for a clearer, annual, evidence-based process for setting the wage, and a think-tank proposal this year suggested a benchmark of Rs 45,000. Whatever the figure, the practical question for a worker is whether skills, location and experience can move earnings well above the floor, and our salary by job pages show how pay rises with skill in each field.
How the minimum wage interacts with tax
A worker on the minimum wage earns well below the Rs 50,000 a month tax-free threshold, so pays no income tax. The first taxed band begins above Rs 600,000 a year. You can check your own take-home pay with the salary tax calculator, and read how the slabs work in our income tax slabs guide. Rates and notifications change, so confirm the current figure with your provincial labour department before relying on it.
Daily-wage, part-time and piece-rate workers
The monthly figure is a guide for full-time employment, but many workers are paid by the day, by the hour or by the piece. The same rate logic applies: the notified wage is calculated for a full day of eight hours, so a worker employed for a full day should receive at least the daily rate, and part-time or hourly workers should receive pay proportionate to the hours worked. Piece-rate workers in factories should be able to earn at least the minimum over a normal working day. If your pay depends on output, keep track of your daily production and compare the total with the daily minimum.
What the increase means for employers
For small businesses, a higher minimum wage raises payroll costs directly, and the cost rises further when employer contributions tied to wages, such as social security and EOBI, are linked to the notified wage. Employers who budget in advance, document pay and agree clear job descriptions find compliance easier. Where a business cannot afford the minimum, it is usually better to seek advice from a labour consultant or the chamber of commerce than to ignore the notification, since penalties and disputes cost more than the original wage.
Frequently confused terms
A minimum wage is the legal floor for unskilled work. A living wage is the pay needed to cover a household's basic costs, and it is usually higher. A market wage is what employers actually pay for a particular role and skill level, and for skilled jobs it is usually well above the minimum. The tax-free threshold of Rs 600,000 a year is a different concept again, and it sits slightly above the annual minimum wage in most provinces.
Frequently Asked Questions
What is the minimum wage in Pakistan in 2026-27?
It varies by region: Rs 40,700 in the Islamabad Capital Territory, Rs 43,000 in Sindh and Rs 40,000 in Punjab, with Khyber Pakhtunkhwa proposing Rs 45,000 and Balochistan reported at Rs 40,000. Check the official notification for your province.
Is there a single national minimum wage in Pakistan?
No. After devolution each province sets its own minimum wage under its own law, and the federal government sets the rate for the Islamabad Capital Territory.
What is the daily minimum wage at Rs 40,000 a month?
About Rs 1,538 per day on a 26-day month, and about Rs 192 per hour for an eight-hour shift.
Do I pay income tax on the minimum wage?
No. The minimum wage is far below the Rs 600,000 a year (Rs 50,000 a month) tax-free threshold.
Where can I complain if I am paid less than the minimum wage?
Start with your employer in writing, then contact your provincial labour department or labour welfare office, which is responsible for enforcing the minimum wage notification.