The federal government has announced a 10 percent increase in the minimum monthly wage as part of the Federal Budget 2026-27, aiming to provide relief to low-income workers amid rising living costs.
Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb said the wage increase is intended to strengthen the purchasing power of workers and support household incomes in the face of economic challenges.
The decision forms part of the government’s broader efforts to improve living standards and provide targeted relief to vulnerable segments of society while maintaining fiscal discipline under ongoing economic reforms.
The increase comes alongside other budgetary measures, including a salary raise for government employees and adjustments to public spending priorities for the fiscal year 2026-27.
Business groups and labor representatives are expected to closely examine the implementation of the revised minimum wage, as its application will affect industries, employers, and workers across the country.
The government believes the measure will help ease financial pressures on low-income households and contribute to greater economic stability by boosting consumer spending.
