Budget 2026-27 National June 3, 2026Mrs. Anjum Shahnawaz PIDE proposes hybrid wage-setting model linked to productivity, affordability and worker welfare The Pakistan Institute of Development Economics (PIDE) on Tuesday proposed raising the national minimum wage to Rs45,000 per month for fiscal year 2026-27 under a new evidence-based framework designed to reform wage determination and strengthen labour market governance. In its Policy Viewpoint No. 62, titled “Reforming Minimum Wage Determination in Pakistan: From Wage Announcements to Wage Governance,” PIDE called for replacing the existing wage-setting approach with a transparent, rules-based system aligned with principles of the International Labour Organization (ILO). The proposed framework seeks to balance worker welfare, purchasing power protection, labour market affordability, productivity gains and provincial implementation challenges, according to the study. Using official data from the Pakistan Bureau of Statistics (PBS) and the Ministry of Planning, Development and Special Initiatives, the institute recommended a national minimum wage benchmark of Rs45,000 per month for FY2026-27. The proposed rate represents a 12.5% increase from the current notified minimum wage of Rs40,000. Speaking at the launch of the policy viewpoint, Dr. Nadeem Javaid, Vice Chancellor of PIDE and a member of the Planning Commission of Pakistan, said minimum wage determination should move beyond an annual administrative exercise and be linked more closely to economic realities…