Recommendation to set minimum monthly wage at Rs. 45,000 for the financial year 2026-27
Published 1 hour ago | By Pak24tv
The Pakistan Institute of Development Economics (PIDE) has formally recommended setting the minimum monthly wage in the country at Rs 45,000 for the new fiscal year 2026-27.
PIDE, through its evidence-based framework, has proposed a 12.5 percent increase in the current minimum wage of Rs 40,000. This proposal is being considered a major step towards improving the financial conditions of employees at the national level and economic stability.
The institute clarified that the determination of minimum wage is no longer just an internal matter of the labor department, but this decision has a profound impact on the broader aspects of the country’s economy. This includes important factors such as the purchasing power of citizens, poverty rate, informal employment and local demand.
According to the report, the average inflation from July to April of the fiscal year 2026 was 6.19 percent, while the year-on-year inflation rate reached 10.9 percent in April 2026.
PIDE says this salary adjustment is necessary to increase productivity incentives and ensure social stability.
