Islamabad (Commerce Desk) The Pakistan Institute of Development Economics (PIDE) has formally recommended setting the country’s minimum monthly wage at Rs 45,000 for the fiscal year 2026-27.
According to a private TV channel, PIDE, under its evidence-based framework, has proposed a 12.5 percent increase in the current minimum wage of Rs 40,000. This recommendation is being seen as an important step toward improving the economic conditions of workers at the national level and moving toward economic stability.
The report highlights that determining the minimum wage is no longer just an internal matter of the labour department, but a decision that has a deep impact on broader aspects of the national economy. These include citizens’ purchasing power, poverty levels, informal employment, and domestic demand.
The institute further stated that this increase in wages is considered necessary to improve productivity and ensure social stability.
According to the report, the average inflation rate from July to April of FY2026 was recorded at 6.19 percent, while on a year-on-year basis, inflation reached 10.9 percent in April 2026.