The 2026-27 minimum wage by province
Pakistan has no single national minimum wage. Each province, and the Islamabad Capital Territory, notifies its own rate for unskilled adult workers, usually with effect from 1 July. As of November 2026, the rates are:
| Province | Monthly minimum wage | In force from | Status |
|---|---|---|---|
| Sindh | PKR 43,000 | 1 July 2026 | Notified August 2026, backdated |
| Islamabad Capital Territory | PKR 40,700 | 1 July 2026 | Notified August 2026, backdated |
| Punjab | PKR 40,000 | 1 July 2025 | No 2026-27 rate notified yet |
| Khyber Pakhtunkhwa | PKR 40,000 (PKR 45,000 announced) | 1 July 2025 | Announced rate awaiting notification |
| Balochistan | PKR 37,000 | Last notified | Check for a 2026-27 notification |
The rates are monthly figures based on 26 working days, so Punjab's PKR 40,000 equals about PKR 1,538 a day. Sindh also notifies higher floors for semi-skilled, skilled and highly skilled workers.
Why it matters even if you pay far above it
Most overseas employers pay professional staff several times the minimum wage, so the floor itself rarely binds. What does change with it are the statutory contributions, because EOBI and provincial social security are calculated on the minimum wage of the province where the employee works, not on actual salary.
| Province | Employer EOBI (5%) | Employee EOBI (1%) | Employer social security (6%) |
|---|---|---|---|
| Sindh | PKR 2,150 | PKR 430 | PKR 2,580 (SESSI) |
| Islamabad | PKR 2,035 | PKR 407 | Depends on coverage |
| Punjab | PKR 2,000 | PKR 400 | PKR 2,400 (PESSI) |
| Khyber Pakhtunkhwa | PKR 2,000 | PKR 400 | Provincial ESSI |
| Balochistan | PKR 1,850 | PKR 370 | Provincial ESSI |
Per employee per month. When a province raises its rate, every employee's contributions move with it, whatever they earn.
Late notifications and backdated arrears
Provinces often announce a new rate in the June budget but notify it weeks or months later, backdated to 1 July. Sindh and Islamabad both notified their 2026-27 rates in August 2026 with effect from July. Employers then owe the difference in contributions, and for any worker paid near the floor, salary arrears, for every month in between. A good payroll provider recalculates and pays the arrears in the next payroll and shows them as a separate line.
A checklist for overseas employers
1. Know which province each employee works in; the rules follow the place of work, not your head office. 2. Check every July for new notifications, and again in August and September. 3. Budget for backdated contribution arrears. 4. Keep salaries for junior roles comfortably above the skilled-worker floors. 5. Ask your provider to show contribution bases on every payslip.
RRI tracks every provincial notification for clients of its Employer of Record service in Pakistan. For the full cost picture, see what it costs to employ someone in Pakistan in 2026.
Questions employers ask
What is the minimum wage in Pakistan in 2026-27?
It depends on the province: PKR 43,000 in Sindh and PKR 40,700 in Islamabad from 1 July 2026, PKR 40,000 in Punjab and Khyber Pakhtunkhwa (with PKR 45,000 announced in KP), and PKR 37,000 in Balochistan.
Is the minimum wage monthly or daily?
It is notified as a monthly figure for 26 working days; divide by 26 for the daily rate.
Does the minimum wage affect employees on higher salaries?
Yes, indirectly. EOBI and provincial social security contributions are calculated on the minimum wage, so they rise when it rises, whatever the actual salary.
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Renaissance Recruitment Inc. · Lahore · Employer of Record, payroll and compliance for overseas companies since 2007.