ZaffreZaffre Axon
← All articles

Minimum Wage KPK 2026 — Complete Guide for Employers

Zaffre Tech · January 15, 2026

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 workersPKR 37,000July 2025
Semi-skilled workersHigher — per category notificationJuly 2025
Skilled workersHigher — per category notificationJuly 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

  1. Verify all unskilled workers are paid at least PKR 37,000/month
  2. Check KPK Labour Department notifications for skilled and semi-skilled category rates
  3. Update EOBI contribution basis to PKR 37,000
  4. Update KPESSI insurable wage for affected workers
  5. Issue salary revision letters to any worker previously below PKR 37,000
  6. Apply from 1 July 2025 — process back-pay where applicable
  7. 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

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.