Minimum Wage KPK 2026 — Complete Guide for Employers
The minimum wage in Khyber Pakhtunkhwa (KPK) 2026 is PKR 37,000 per month for unskilled workers, as notified by the KPK Labour Department for fiscal year 2025-26. This guide covers KPESSI contributions, overtime rules, and the full compliance checklist for employers in Peshawar, Mardan, Abbottabad, and across KPK.
KPK Minimum Wage 2026 — Quick Reference
| Worker Category | Monthly Rate (PKR) | Effective |
|---|---|---|
| Unskilled workers | PKR 37,000 | July 2025 |
| Semi-skilled workers | Higher — per category notification | July 2025 |
| Skilled workers | Higher — per category notification | July 2025 |
Always verify against the latest KPK Labour Department notification before applying.
Who this applies to
The KPK minimum wage applies to all workers in establishments covered under KPK labour laws, including industrial, commercial, and service-sector businesses operating in Peshawar, Mardan, Abbottabad, Swat, Kohat, Nowshera, Haripur, and all districts of Khyber Pakhtunkhwa.
KPESSI — Khyber Pakhtunkhwa Employees Social Security Institution
Employers in KPK must register with and contribute to KPESSI for eligible workers:
- Employer contribution: 6% of insurable wages
- Employee contribution: 1% of insurable wages
- Insurable wage ceiling: Verify current ceiling with KPESSI — typically revised alongside minimum wage
KPESSI provides medical, sickness, maternity, and invalidity benefits to registered workers and their families.
EOBI contribution impact
EOBI contributions are calculated on the minimum wage (PKR 37,000), not the actual salary:
- Employer: 5% of PKR 37,000 = PKR 1,850/month
- Employee: 1% of PKR 37,000 = PKR 370/month
Payroll compliance checklist for KPK employers
- Verify all unskilled workers are paid at least PKR 37,000/month
- Check KPK Labour Department notifications for skilled and semi-skilled category rates
- Update EOBI contribution basis to PKR 37,000
- Update KPESSI insurable wage for affected workers
- Issue salary revision letters to any worker previously below PKR 37,000
- Apply from 1 July 2025 — process back-pay where applicable
- Maintain wage registers per KPK labour law requirements
Overtime for minimum-wage workers in KPK
Under KPK labour law (Factories Act as applicable), overtime is at double the ordinary rate. For PKR 37,000/month (208 hours):
- Ordinary hourly rate: ≈ PKR 178/hour
- Overtime rate: ≈ PKR 356/hour
Other provinces
- Minimum Wage Punjab 2026
- Minimum Wage Sindh 2026
- Minimum Wage Balochistan 2026
- Minimum Wage Islamabad (ICT) 2026
- All-province comparison
Zaffre HRM for KPK employers
Zaffre HRM supports KPK-specific minimum wage and KPESSI configuration. When KPK revises the rate, one setting update cascades across EOBI, KPESSI, and overtime. Book a demo.
Important caveat
Always verify the current KPK Labour Department notification before applying any rate published here. Minimum wages are subject to annual revision.