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Minimum Wage Punjab 2026 — Complete Guide for Employers

Zaffre Tech · January 15, 2026

The minimum wage in Punjab 2026 is PKR 37,000 per month for unskilled workers, set by the Punjab Minimum Wages Board for the fiscal year 2025-26. This guide covers all worker categories, PESSI contribution rates, and the payroll compliance steps every Punjab employer must follow.

Punjab 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 Punjab Labour Department notification before applying.

Who this applies to

The Punjab minimum wage applies to all workers employed in establishments covered by the Punjab Minimum Wages Act 2019, including industrial, commercial, and service-sector establishments operating within Punjab. Employers with operations in Lahore, Faisalabad, Rawalpindi, Gujranwala, Sialkot, Multan, and other Punjab cities must comply with this rate.

PESSI — Punjab Employees Social Security Institution

Employers in Punjab must contribute to PESSI for workers whose wages are within the insurable wage ceiling. As of FY 2025-26:

  • Employer contribution: 6% of insurable wages
  • Employee contribution: 1% of insurable wages
  • Insurable wage ceiling: Verify current ceiling with PESSI — typically revised alongside minimum wage

When minimum wage rises, PESSI contribution amounts for minimum-wage workers increase proportionally.

EOBI contribution impact

EOBI contributions for Punjab workers are calculated on the minimum wage (currently PKR 37,000), not the actual salary. The EOBI contribution amount is:

  • Employer: 5% of minimum wage = PKR 1,850/month
  • Employee: 1% of minimum wage = PKR 370/month

These figures change when the minimum wage is revised. See: EOBI complete guide.

Payroll compliance checklist for Punjab employers

  1. Confirm all unskilled workers are paid at least PKR 37,000/month gross
  2. Check skilled/semi-skilled category notifications for applicable rates
  3. Update EOBI contribution basis to PKR 37,000
  4. Update PESSI insurable wage for affected workers
  5. Issue salary revision letters to any employee whose salary was below PKR 37,000
  6. Apply from 1 July 2025 — process back-pay if you implemented late
  7. Keep a copy of the Punjab Labour Department notification on file for audit purposes

Overtime for minimum-wage workers in Punjab

Under the Factories Act 1934 (as applicable in Punjab), overtime is paid at double the ordinary rate. For a minimum-wage worker at PKR 37,000/month (approx. 26 working days × 8 hours = 208 hours):

  • Ordinary hourly rate: PKR 37,000 ÷ 208 = ~PKR 178/hour
  • Overtime rate: ~PKR 356/hour

Penalties for non-compliance in Punjab

Paying below the notified minimum wage is an offence under the Punjab Minimum Wages Act 2019. Penalties include fines and, in repeat cases, imprisonment. Labour inspectors can audit payroll records and wage registers. Maintain proper wage registers as required under Punjab labour law.

Other provinces

Zaffre HRM for Punjab employers

Zaffre HRM lets you configure the minimum wage per province. When Punjab revises the rate, update one setting and all EOBI, PESSI, and overtime calculations adjust instantly across your payroll. Book a demo.

Important caveat

Minimum wage rates are revised annually and sometimes mid-year by gazette notification. Always verify the current Punjab Labour Department notification before applying any rate cited here.