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Summary Pakistan raises minimum wage by 10pc to Rs40,700 and removes surcharge on salaried taxpayers in Budget 2026–27, aiming to ease inflation pressure.
ISLAMABAD (Dunya News) -The federal government has announced a 10 percent increase in the minimum monthly wage in Budget 2026–27, alongside the abolition of the surcharge on the salaried class, in a major relief package for workers and employees.
According to Finance Minister Muhammad Aurangzeb, the minimum wage has been raised from Rs 37,000 to Rs 40,700, reflecting the government’s effort to offset rising inflation and improve purchasing power for low-income workers.
The minister said the decision aligns with the government’s commitment to reduce financial pressure on salaried individuals and ensure that wage earners benefit from broader economic adjustments.
In another significant measure, the government has abolished the surcharge previously imposed on the salaried class.
Officials say this will provide direct relief to thousands of employees across both public and private sectors.
