Minimum Wage Pakistan 2026 — Province-by-Province Reference
Minimum wage in Pakistan is provincial, not federal — Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan each set their own minimum wage through the provincial Minimum Wages Boards under the Minimum Wages Ordinance 1961 and provincial laws. Each province typically revises annually in its provincial budget. Here is the 2026 quick reference and how payroll should handle changes.
Why province matters
Since the 18th amendment, labour is a provincial subject. Each province sets its own minimum wage for unskilled workers, with separate notifications for skilled and semi-skilled categories. If your company operates establishments in multiple provinces, you must comply with the relevant rate in each province where workers are employed.
2026 rates (verify before relying)
Provincial minimum wages for unskilled workers in 2026 have generally hovered in the range of PKR 37,000-40,000+ per month depending on province, with annual revisions in the budget cycle (typically June-July for the new fiscal year). Skilled and semi-skilled categories have separate (higher) rates. Always verify against the latest provincial notification — the rate may have been revised since publication of this article.
Where to verify the current rate
- Punjab — Punjab Labour Department / Punjab Minimum Wages Board notification
- Sindh — Sindh Labour Department / Sindh Minimum Wages Board
- KPK — Khyber Pakhtunkhwa Labour Department
- Balochistan — Balochistan Labour Department
Each publishes the notification on its official website. Cross-check before applying.
What minimum wage applies to
- Unskilled workers — the base unskilled rate
- Skilled workers — higher rates per skill category, notified separately
- Apprentices — usually a percentage of the unskilled rate
- Domestic workers — separately notified in some provinces
What it does NOT apply to
- Government employees — separate salary scales (BPS)
- Managerial / supervisory staff — typically above minimum wage by definition
- Specific exempted sectors — check provincial notification for exemptions
How minimum wage interacts with payroll
EOBI contribution basis
EOBI contribution is calculated on the minimum wage, not the actual salary, for most insured persons. When minimum wage changes, the EOBI contribution amount changes automatically. See: EOBI guide.
Overtime rate
Overtime is calculated as a multiple of the ordinary hourly rate. For minimum-wage workers, this means the overtime base also changes when minimum wage is revised. See: overtime guide.
Provincial social security (PESSI / SESSI / KPESSI / BESSI)
Provincial SS contributions are calculated on the insurable wage, which is often tied to minimum wage with adjustments. Changes propagate.
What to do when minimum wage is revised
- Check the provincial notification for effective date
- Update payroll software with the new rate
- For affected employees (those at minimum wage), revise salary structures
- EOBI / PESSI contribution amounts recalculate automatically (if your software is updated)
- Communicate the revision to affected employees with a salary letter
- Apply from the effective date — back-pay if the notification was retrospective
The common minimum-wage mistakes
- Operating in Sindh but applying the Punjab rate (or vice versa)
- Not updating when annual revision happens — paying below the new minimum
- Treating the rate as fixed in payroll software (hard-coded instead of configurable)
- Forgetting that EOBI contribution amount changes with minimum wage
- Missing back-pay when revision is retrospective
The Zaffre HRM fit
Zaffre HRM tracks minimum wage per province (configurable per company) and uses it as the contribution basis for EOBI and provincial SS. When the rate is revised, you update one setting and all downstream calculations adjust. Book a demo.
Caveat
Minimum wage rates are revised annually and sometimes mid-year. Always verify the current provincial notification before applying any rate cited here. Consult your labour-compliance advisor for specific cases.