Update on minimum wages for workers ahead of Pakistan Budget 2026-27

ISLAMABAD – The Pakistan Institute of Development Economics (PIDE) has proposed raising the minimum monthly wage for the fiscal year 2026-27, suggesting an increase from Rs 40,000 to Rs 45,000—a 12.5% rise compared to the current rate. PIDE recommended a transparent, data-driven system for determining wages, noting that minimum pay should reflect inflation, poverty levels, and purchasing power. Under the proposal, monthly minimum wages would be set at Rs 46,000 in Sindh, Rs 45,000 in Punjab and Khyber Pakhtunkhwa, and Rs 45,500 in Balochistan. It also urged phased implementation, making compliance mandatory for government contracts and outsourced services, and suggested annual provincial reports on wage enforcement to monitor effectiveness. PIDE highlighted that over 80% of Pakistan’s workforce is employed in the informal sector, posing significant challenges for enforcing minimum wage laws. The proposed framework has been submitted to the Planning Commission for review, with PIDE emphasizing that minimum wage policy should go beyond annual announcements and include governance, monitoring, and enforcement mechanisms. Budget 2026-27 Date The federal budget 2026-27, originally scheduled for June 5, has been postponed due to several reasons, reports said on Tuesday. The meeting of the National Economic Council (NEC), which was to be held on June 3, has also been postponed, and an official notification regarding the delay has been issued. Reports said that the new date for the federal budget presentation has not yet been finalized, though June 8 or June 12 are being considered as possible options. Some reports suggest that June 10 is now the most likely date under consideration to table the Budget 2026-27.