You work at a factory in Lahore. Your payslip says Rs 32,000 a month. The supervisor says that is what the job pays. He is wrong. The law says an unskilled adult worker in Punjab must be paid at least Rs 40,000 a month. This post tells you what the minimum wage in Pakistan is in 2026, province by province, and what to do if your employer pays you less.
What is the minimum wage in Pakistan in 2026?
There is no single national minimum wage. After the 18th Amendment in 2010, labour became a provincial matter. Each province fixes its own rate and publishes it in the official gazette. The number you hear in the federal budget is only a signal. The binding number is the one in your province's notification.
- Islamabad: Rs 40,700 a month from 1 July 2026
- Sindh: Rs 43,000 a month from 1 July 2026
- Punjab: Rs 40,000 a month
- Khyber Pakhtunkhwa: Rs 40,000 a month, with Rs 45,000 announced in the 2026 budget
- Balochistan: Rs 37,000 a month
- Gilgit-Baltistan: Rs 44,000 a month
The federal government raised the minimum wage for its own employees from Rs 37,000 to Rs 40,700 with effect from 1 July 2026. The Finance Division office memorandum says so in plain words. That rate binds in Islamabad Capital Territory.
Sindh went further. The Sindh cabinet approved Rs 43,000 a month for unskilled workers, effective 1 July 2026, under the Sindh Minimum Wages Act 2015. The Sindh labour department enforces it.
What does the minimum wage cover?
The minimum wage is a monthly figure based on 26 working days. In Punjab, Rs 40,000 works out to about Rs 1,538 a day and Rs 192 an hour for an unskilled worker.
It covers unskilled adult workers. Permanent, daily wage and contract workers all fall under it. There is no contract that can lawfully pay below this floor. If your contract says less, that part of the contract is void.
Skilled and semi skilled workers get higher floors. The rates vary by province and by trade, so check the notification for your province and your category before you rely on a number.
Which law sets the minimum wage?
The base is the Minimum Wages Ordinance 1961, read with the West Pakistan Minimum Wages Rules 1962. It still works today.
After devolution, the provinces passed their own laws beside it:
- Punjab: Punjab Minimum Wages Act 2019
- Sindh: Sindh Minimum Wages Act 2015
- Khyber Pakhtunkhwa: KP Minimum Wages Act 2013
Each province has a Minimum Wage Board. It has government, employer and worker representatives. The board reviews rates, usually once a year, and recommends them to the government for notification.
What happens to an employer who pays less?
Under section 9(3) of the Minimum Wages Ordinance 1961, an employer who pays below the notified minimum can face a fine, up to six months imprisonment, or both. The employer also has to pay the arrears you are owed.
Section 9-A of the same Ordinance gives the government power to appoint an Authority to hear and decide claims for unpaid or delayed wages. This is the forum for a wage claim.
Labour inspectors have the power to visit workplaces and check wage records under rules 21 to 23 of the 1962 Rules. They can also receive complaints from workers.
Paid below minimum wage? The steps
If your employer pays you less than the floor, act in this order. Keep written proof at every stage.
- Raise it in writing with your employer. Keep your payslips, your contract and a record of hours worked.
- Serve a grievance notice within 90 days of the grievance arising.
- Complain to the labour inspector of your province.
- File a claim for unpaid wages before the Authority appointed under section 9-A.
- If it is still unresolved, file a petition in the labour court.
Timing matters. Under the Industrial Relations Act 2012, a grievance petition generally has to reach the forum within about two months and fifteen days after the grievance notice. Miss the deadline and the claim can be time barred.
Keep your paper trail. Payslips, dated messages, your appointment letter and attendance records are what win wage claims. If your employer refuses to give a payslip, note that in your complaint. Refusing a payslip is itself a compliance failure.
Minimum wage is only the floor
The notified wage is your starting point, not your full entitlement. On top of it the law adds overtime, benefits and end of service dues.
One example: EOBI contributions are calculated on the minimum wage, not on your actual salary, for establishments with five or more workers. The employer pays 5 percent and the employee pays 1 percent. When the minimum wage rises, the contributions rise with it.
At Rs 40,000 a month your annual income is Rs 480,000. That sits below the Rs 600,000 income tax exemption threshold, so no salary tax is due at the minimum wage level.
What it means for you
Know your province and know your rate. If you are paid less, the law is on your side and there is a clear path to claim what you are owed. The same enforcement gap that weakens wage law also weakens other worker protections. The guides to maternity leave in Pakistan and child labour law in Pakistan show how it plays out, and what the law does and does not do to stop child labour covers the enforcement gap in detail. If someone at work harasses you, the workplace harassment law in Pakistan explains how to file a complaint. Browse the Lexiber blog or ask on the Lexiber home page.
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