Pakistan Minimum Wage 2025-26: Govt Ignores Inflation, Keeps Rates Unchanged

Finance Minister Muhammad Aurangzeb confirmed on Wednesday that the minimum wage in Pakistan will remain unchanged at Rs37,000 per month for the financial year 2025-26, with no increase announced in the newly presented federal budget.

During his budget speech on Tuesday, the finance minister did not mention any adjustment to the minimum wage in Pakistan, which has now officially been confirmed to remain at Rs37,000 per month. The budget, themed “for a competitive economy,” aims for a 4.2% GDP growth in FY26, compared to the 2.7% expected in FY25.

The federal budget for FY2025-26 was presented with a total outlay of Rs17.6 trillion, marking a 7% reduction or Rs1.3 trillion decrease from the Rs18.9 trillion set in FY25. Despite inflationary pressures and rising cost of living, the government opted not to raise the minimum wage this year.

Last year, the monthly minimum wage saw a hike from Rs32,000 to Rs37,000. However, the current fiscal plan maintains the same figure, overlooking demands from coalition partner Pakistan People’s Party (PPP), which had called for an increase to Rs50,000 per month.

The decision not to revise the minimum wage in Pakistan has drawn attention amid broader economic reforms, as the government seeks to stabilize growth and reduce fiscal deficit while balancing social welfare concerns.