The Pakistan Institute of Development Economics (PIDE) has proposed raising minimum wage levels across the country ahead of the Federal Budget 2026–27. The institute recommended increasing the minimum monthly wage from Rs 40,000 to Rs 45,000 to help workers cope with rising living costs and economic pressures. Moreover, PIDE urged policymakers to adopt a transparent and evidence-based wage-setting mechanism that reflects inflation, poverty levels, and purchasing power.
PIDE Recommends Region-Specific Wage Targets
According to the proposal, Sindh should set its minimum monthly wage at Rs 46,000, while Punjab and Khyber Pakhtunkhwa should implement a wage of Rs 45,000. Meanwhile, Balochistan should establish a minimum wage of Rs 45,500. PIDE stated that these recommendations consider regional economic conditions and aim to improve workers’ financial stability.
In addition, the institute called for the phased implementation of wage increases. It also recommended making compliance with minimum wage regulations mandatory in government contracts and outsourced services. As a result, authorities could strengthen accountability and ensure broader adherence to labor standards.
Stronger Enforcement and Monitoring Suggested
PIDE highlighted that enforcing minimum wage laws remains a significant challenge because more than 80 percent of Pakistan’s workforce operates in the informal sector. Therefore, the institute emphasized the need for stronger monitoring systems and stricter enforcement measures.
Furthermore, PIDE proposed that all provincial governments publish annual reports detailing minimum wage implementation. These reports would help authorities evaluate compliance levels and identify areas requiring improvement. The institute has already submitted the proposed framework to the Planning Commission of Pakistan for review.
PIDE concluded that raising minimum wage should become part of a comprehensive governance framework rather than remain an annual policy announcement. Consequently, effective monitoring, enforcement, and regular evaluation can help ensure lasting benefits for workers nationwide.
