Punjab Assembly approves Rs40,000 minimum wage bill

LAHORE: The Punjab Assembly has passed a bill to regulate the minimum wage of employees at Rs 40,000, which will now be sent to the Governor of Punjab for final signature.

Taking a major step in the interest of protecting the rights of workers and facing economic pressure, the Punjab government has passed the “Punjab Employees Social Security (Amendment) Act 2026” with a majority vote from the Punjab Assembly.

Through this bill, important amendments were made to the decades-old Social Security Ordinance 1965. Under the new legislation, the minimum wage in the province has been officially fixed at Rs 40,000.

Officials said that the salary limit in the old law was still Rs 22,000, which was creating administrative and legal complications. Due to this difference, the department was facing difficulties in collecting social security contributions.

The amendment act aims to bring the social security structure in line with current economic realities. Steps have been taken to provide legal protection to social security contributions paid since July 2022 so as to remove obstacles in the implementation of labor laws.

Without these reforms, the relevant departments were facing difficulties in implementing the rights of workers, which will now end after this amendment bill.

After approval from the Punjab Assembly, the bill will now be sent to the Governor of Punjab for final signature, after which it will become a regular law.

This move by the Punjab government is being described as a major relief for the working class in the era of rising inflation and a significant step towards labor protection.