PIDE Recommends Raising Pakistan’s Minimum Wage to Rs45,000 in FY2026-27

ISLAMABAD: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.

According to a proposed evidence-based framework, PIDE has suggested increasing the minimum wage from the current Rs40,000 to Rs45,000, marking a 12.5 percent rise.

The recommendation highlights that minimum wage policy is no longer limited to labour departments but has broader implications for household purchasing power, poverty risks, informal employment, local demand, productivity incentives, and overall social stability.

PIDE’s report also notes that average inflation stood at 6.19 percent during July–April of fiscal year 2026, while year-on-year inflation reached 10.9 percent in April 2026.

The proposal is expected to be reviewed by policymakers as part of broader discussions on wage policy for the next fiscal year.