Minimum salary of 45,000 proposed in Budget 2026-27

ISLAMABAD: The Pakistan Institute of Development Economics (PIED) has recommended setting the minimum monthly wage at Rs 45,000 for the next fiscal year.

According to the details, PIED has prepared an evidence-based framework report for determining the minimum wage, which suggests that the current minimum wage be increased from Rs 40,000 to Rs 45,000. This proposed increase will result in an increase in salaries of about 12.5 percent.

The report states that the increase in the minimum wage will improve the purchasing power of the low-income group and provide them with some protection from the effects of inflation.

According to PIED, wage policy directly affects poverty, employment, domestic demand, and the overall economy; therefore, this matter should not be limited to the labor department alone but must be viewed in a broader economic context.

It was further informed that the average inflation rate during July-April of the financial year 2025-26 was recorded at 6.19 percent, while the annual inflation rate reached 10.9 percent in April 2026.

Paid stressed that wages should be adjusted according to the current inflation and economic conditions so that social stability, poverty reduction, and economic activities in the country can be promoted. If this proposal is implemented, millions of workers are expected to benefit directly.