Government announces 7% pay hike and higher minimum wage to support workers
ISLAMABAD, June 12, 2026 — Pakistan raises salaries, pensions and minimum wage in Budget 2026–27, announcing relief measures for government employees and low-income workers amid rising living costs.
Finance Minister Muhammad Aurangzeb announced the measures while presenting the federal budget in the National Assembly on Friday.
7% Increase for Salaries and Pensions
According to the budget announcement, government employees will receive a 7% increase in salaries, while pensions for retired employees will also be raised by 7%.
Officials said the adjustment is intended to provide financial relief to public sector workers while maintaining fiscal balance within the broader budget framework.
Minimum Wage Raised by 10%
The government also announced a 10% increase in the minimum wage for labourers in the upcoming fiscal year.
Under the revised structure, the minimum monthly wage has been raised by Rs3,000 to Rs40,000 per month, aimed at improving purchasing power for low-income workers.
Focus on Social Protection
Officials said the wage and pension increases form part of a broader social protection strategy designed to reduce financial pressure on vulnerable segments of society.
The measures are expected to support household consumption while providing targeted relief amid inflationary pressures.
Part of Wider Budget Relief Package
The salary and wage adjustments come alongside other fiscal measures in Budget 2026–27, including tax reductions and sector-specific incentives.
The government said the overall package reflects an effort to balance fiscal discipline with economic relief, while supporting stability and growth through increased domestic consumption.
