ISLAMABAD: The federal government on Wednesday set the minimum monthly wage at Rs36,000 as Finance Minister Muhammad Aurangzeb presented his first federal budget for the fiscal year 2024-25. This decision, which will take effect from July 1, 2024, is expected to significantly impact workers across various sectors.
The new minimum wage, a long-awaited change, applies to all Civil Employees of the Federal Government and civilians paid from Defense estimates, including contingent paid staff and contract employees in Basic Pay Scales, adhering to the standard terms and conditions of contract employment.
Inflation in Pakistan, which had surged to 38 percent in May 2023, has slowed to 11.8 percent over the past year, according to the Pakistan Bureau of Statistics. The price of a kilogram (2.2 pounds) of wheat, which was over 130 rupees ($0.47) in May last year, has decreased to 102 rupees ($0.37) this year.
However, the government’s decision to devalue the currency by more than 50 percent within a year and eliminate subsidies as part of the latest installment of the International Monetary Fund bailout package has intensified the nation’s cost-of-living crisis.
