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 details, PIDE has proposed an evidence-based framework suggesting a 12.5 percent increase in the minimum wage compared to the current level of Rs40,000 per month.
The institute stated that minimum wage policy is no longer limited to labour departments alone, but now has a direct impact on household purchasing power, poverty risks, informal employment, domestic demand, productivity incentives and overall social stability.
In its report, PIDE highlighted that average inflation remained at 6.19 percent during July–April of FY2026, while year-on-year inflation reached 10.9 percent in April 2026, indicating continued pressure on household incomes.
The recommendation is expected to be considered as part of discussions for the upcoming federal budget, where wage revision is typically reviewed in line with inflation trends and economic conditions.
