Among the many issues debated after the announcement of annual budgets by federal and provincial governments, minimum wage is one. While the headlines report the minimum wage figure widely, the legal framework and process for determining minimum wages remain less commonly understood.
Below is a review of the legal framework, decision-making process, and the latest notified minimum wage rates.
What laws govern minimum wages?
Minimum wage determination in Pakistan is governed by separate federal and provincial laws:
- Minimum Wages Ordinance, 1961 applies to industrial undertakings within the Islamabad Capital Territory (ICT).
- Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969 applies to commercial and industrial establishments in the federal territory.
- Balochistan Minimum Wages Act, 2021 applies to industrial undertakings and commercial concerns in Balochistan.
- Sindh Minimum Wages Act, 2015 applies to industrial and commercial establishments in Sindh.
- Punjab Minimum Wages Act, 2019 applies to industrial and commercial establishments in Punjab.
- Khyber Pakhtunkhwa Minimum Wages Act, 2013 applies to industrial and commercial establishments in Khyber Pakhtunkhwa.
What process is followed for minimum wage determination?
The relevant laws provide for the constitution of tripartite Minimum Wages Boards comprising representatives of government, employers, and workers.
These boards do not act independently but make recommendations when the respective government refers the matter to them. Upon receiving recommendations, the concerned government issues a notification specifying minimum wage rates, making them legally enforceable.
For the purpose of minimum wage determination, workers are categorized by age—adult, juvenile, and adolescent—and by skill level—unskilled, semi-skilled, and skilled. What is often reported as minimum wage is the wage determined for all age categories of unskilled workers. In addition to monthly minimum wages, the boards also determine rates for time-based work, piece work, overtime, and rates for work on holidays.
What are the current minimum wage rates?
For financial year 2025–26, the following minimum wages have been notified:
Sindh: According to a notification dated July 28, 2025, the monthly minimum wage for unskilled workers is PKR 40,000 for 26 working days per month. The daily wage is PKR 1,538 and the hourly wage is PKR 192.
Khyber Pakhtunkhwa: As per notification dated September 10, 2025, the monthly minimum wage for unskilled workers is PKR 40,000 for 26 working days per month. The daily wage is PKR 1,538. The notification does not specify an hourly rate.
Punjab: According to notification dated September 8, 2025, the monthly minimum wage for unskilled workers is PKR 40,000 for 26 working days per month. The daily wage is PKR 1,538 and the hourly wage is PKR 192. The notification allows employers to deduct up to PKR 100 per meal, PKR 1,800 per month for transport, and PKR 2,000 per month for accommodation, where applicable.
Balochistan and Islamabad Capital Territory: The latest official notifications for Balochistan and ICT were not publicly available at the time of review. However, media reports indicate that the minimum wage for unskilled workers in both jurisdictions is PKR 37,000.
