PIDE recommends raising minimum monthly wage to Rs45,000 for FY2026-27

In its evidence-based policy framework, PIDE proposed a 12.5 percent increase in the minimum wage, raising it from the current Rs40,000 to Rs45,000 per month.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 3rd, 2026) The Pakistan Institute of Development Economics (PIDE) has recommended setting the national minimum monthly wage at Rs45,000 for the upcoming fiscal year 2026-27.

In its evidence-based policy framework, PIDE proposed a 12.5 percent increase in the minimum wage, raising it from the current Rs40,000 to Rs45,000 per month.

According to the report, minimum wage policy is no longer limited to labour-related concerns but has wider implications for household purchasing power, poverty risks, informal employment, domestic demand, productivity incentives and overall social stability.

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The institute noted that inflation averaged 6.19 percent during July–April of the current fiscal year, while year-on-year inflation rose to 10.9 percent in April 2026.

PIDE said the proposed adjustment aims to align wages with inflationary pressures and broader economic conditions, ensuring better income support for low-wage workers across the country.