Minimum Wage in Pakistan 2017-18

Minimum wage in Pakistan. Find out the current minimum wage in Punjab and Sindh Province. Wage rates in Ready Made Garment, Construction, Agriculture and many more Industries.

Minimum Wage in Pakistan for Unskilled Workers in 2017-2018

The Federal Finance Minister (Mr. Ishaq Dar) while announcing the Federal Budget (2017-18) on 26 May 2017 has raised the minimum wage rate for unskilled workers from Rs. 14,000 to Rs. 15,000 per month with effect from July 2017 (applicable to Islamabad Capital Territory). Dr. Ayesha Ghaus Pasha, Finance Minister in Punjab, announced to raise the minimum wage from current Rs. 14,000 to Rs. 15,000 while presenting the budget on 2 June 2017. The Sindh Chief Minister (Syed Murad Ali Shah) presented the budget on 5 June 2017 however no wage increase for the private sector was proposed. The Khyber Pakhtunkhwa Finance Minister (Mr. Muzaffar Said) while announcing the KPK Budget (2017-18) on 7 June 2017 has raised the minimum wage rate for unskilled workers from Rs. 14,000 to Rs. 15,000 per month with effect from July 2017. The Adviser to the Chief Minister Balochistan for Finance announced the Balochistan budget 2017-18 on 15 June 2017. The minimum wage for unskilled private sector workers was raised from Rs. 14,000 to Rs. 15,000 with effect from July 2017. AJK Finance Minister, Dr Najeeb Naqi, presented Azad Jammu and Kashmir Budget 2017-18 on 15 June and proposed to raise the minimum wage to Rs. 15,000 per month.  

Minimum Wage in Pakistan for Unskilled Workers in 2016-2017

The Punjab Chief Minister, Mr. Shahbaz Sharif, announced on the May Day to raise the minimum wage rate for unskilled workers from Rs. 13,000 to Rs. 14,000 per month with effect from July 2016 (The same was reiterated by the Finance Minister - Dr. Ayesha Ghaus Pasha-  while presenting the budget on 13 June 2016). The Finance Minister (Mr. Ishaq Dar) while announcing the Federal Budget (2016-17) on 03 June 2016 has raised the minimum wage rate for unskilled workers from Rs. 13,000 to Rs. 14,000 per month with effect from July 2016 (applicable to Islamabad Capital Territory). The Sindh Finance Minister (Syed Murad Ali Shah) while announcing the Sindh Budget (2016-17) on 11 June 2016 has raised the minimum wage rate for unskilled workers from Rs. 13,000 to Rs. 14,000 per month with effect from July 2016. The Khyber Pakhtunkhwa Finance Minister (Mr. Muzaffar Said) while announcing the KPK Budget (2016-17) on 14 June 2016 has raised the minimum wage rate for unskilled workers from Rs. 13,000 to Rs. 14,000 per month with effect from July 2016. TThe Balochistan Chief Minister (Nawab Sanaullah Khan Zehri) while announcing the Budget (2016-17) on 19 June 2016 has raised the minimum wage rate for unskilled workers from Rs. 13,000 to Rs. 14,000 per month with effect from July 2016.

Minimum Wage in Punjab for the year 2015-2016

More Information on Minimum Wage in Pakistan

Minimum Wage is the wage level (set by Government, either after consultation with the social partners i.e. worker organizations and employer associations or unilaterally) below which it is illegal for the employer to pay his/her employees.

Minimum Wage in Pakistan is set by the following two acts: 

  •  Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969 (no longer in use after the 18th Amendment)
  • The Minimum Wages Ordinance, 1961 (applicable in ICT, Sindh & Balochistan)
  • The Khyber Pakhtunkhwa Minimum Wages Act, 2013
  • The Minimum Wages Ordinance, 1961 (adapted in Punjab by 2012 Amendment Act)


In June 2015, the Federal Government has raised the minimum wage from Rs. 12,000 to Rs. 13,000 per month for unskilled workers. This decision was also repeated in the budgets presented by the Provincial Governments of Punjab, Sindh & Balchistan. The Khyber Pakhtunkhwa province has also notified its minimum wage as Rs. 12,000. The minimum wage rate for unskilled & juvenile (14 years to 17 years) workers is Rs.13,000 per month in the provinces of Punjab, Sindh, and Balochistan as well as the Islamabad Capital Territory. These minimum wage rates are applicable from 01 July 2015. The daily minimum wage for an 8 hour work day is Rs. 500 (and Rs.13,000 for 26 working days). Minimum wage for unskilled & juvenile workers       (14 years to 18 years) is notified as Rs.12,000 per month in Khyber Pakhtunkhwa with effect from 01 July 2014. The daily minimum wage in Khyber Pakhtunkhwa is Rs.461.54 (and Rs.12,000 for 26 working days).The Khyber Pakhtunkhwa Government had fixed a higher minimum wage in 2014   (Rs. 15,000 per month) however it was fixed unilaterally by the Government without forming and consulting the Minimum Wage Board. This notification was suspended in March 2015 by the Peshawar High Court. The new notification, declaring Rs. 12,000 as minimum wage for unskilled workers has been issued in September 2015 and is effective from back date. Khyber Pakhtunkhwa again issued a minimum wage notification in January 2016 declaring the minimum wage as Rs. 13,000 with effect from July 2015. 

Minimum Wages for Unskilled Workers used to be fixed under the 1969 Ordinance however after devolution of Ministry of Labour to provinces, the wages are announced under Minimum Wages Ordinance, 1961 which applies to all industrial establishments’ employees (whether skilled, unskilled or apprentices and even domestic workers) but it excludes the employees of Federal or Provincial governments, coamine employees or persons employed in agriculture.

There is yet another law that provides for minimum wage fixation for coal mine workers i.e. The Coal Mines (Fixation of Rates of Wages) Ordinance 1960. Provincial Governments issue minimum wage notifications for these coal miners and they may also consult Mines Welfare Board in wage fixation (but it is not necessary)

As for the Minimum Wages Ordinance, 1961, specially constituted tripartite provincial minimum wage boards recommend minimum wage rates to the provincial governments. These tripartite (i.e. where three social partners; worker, employer and government; meet, discuss and solve work related issues together) boards are constituted at the provincial level and they are entrusted with the statutory task of recommending the minimum wage rates for time work; piece work; overtime work; work on weekly rest day; paid holidays and the minimum time rates for workers employed on piece work so as to guarantee minimum wages for such workers on a timely basis. The status of provincial minimum wage boards is only advisory and the power rests with the provincial government to declare these wages. These recommendations become enforceable only when accepted and notified by the respective provincial governments. The Minimum Wage Boards can also periodically review these wages and recommend any amendments to their respective governments however authority again rests with the government whether it adopts and give these recommendations a legal status. 

 

Minimum Wages for Unskilled Workers in Pakistan (over the last 15 years)

Year

Wage per month (PKR)

Single National Minimum Wage for unskilled workers

1998

1,950

2001

2,500

2005

4,000

2007

4,600

2008

6,000

Provincial Minimum Wage for unskilled workers (after Devolution of the subject of Labour in 2010)

2010

Sindh, Khyber Pakhtunkhwa, Balochistan: 7,000 (Punjab: 8,000)

2012

Sindh, Khyber Pakhtunkhwa, Balochistan: 8,000 (Punjab:9,000)

2013

Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan: 10,000

2014

Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan: 12,000

2015

Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and ICT: 13,000                          The Minimum Wage in Khyber Pakhtunkhwa was earlier declared as PKR 12,000 however it was raised to 13,000 in January 2016 with effect from July 2015. 

2016

Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and ICT: PKR 14,000 (with effect from 01 July 2016) 

2017

Punjab, Khyber Pakhtunkhwa, Balochistan, ICT and AJK: PKR 15,000 (with effect from 01 July 2016)

Sindh did not announce minimum wage increase under the Budget. However, later it also increased the minimum wage to 15,000 rupees. 

Do you want to register non-payment of minimum wage by your employer? If yes, please anonymously submit the violation information through the Whistlers. Here is the link
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