Minimum wage kept unchanged at Rs37,000 in FY26 budget

ISLAMABAD – Finance Minister Muhammad Aurangzeb on Wednesday confirmed that the federal government has not increased the minimum monthly wage in the budget for the financial year 2025–26, keeping it unchanged at Rs37,000.

The announcement came a day after the federal budget was presented in parliament, although the finance minister did not address the minimum wage issue during his speech. The government had raised the minimum wage from Rs32,000 to Rs37,000 in the previous budget.

This year’s budget, with a total outlay of Rs17.6 trillion — a 7% decrease from the Rs18.9 trillion set for FY25 — targets a real GDP growth rate of 4.2% in FY26, up from 2.7% expected in the outgoing year.

The decision to freeze the minimum wage comes despite public calls from the Pakistan Peoples Party (PPP), a coalition ally of the PML-N-led federal government, to increase it to Rs50,000. The PPP has consistently raised the demand citing inflationary pressures and rising cost of living.

As of now, no federal announcement has been made regarding adjustments to wages or pensions beyond existing allocations.