ISLAMABAD: The federal government has decided not to increase the minimum wage for the upcoming fiscal year, Finance Minister Muhammad Aurangzeb announced during a post-budget press conference on Tuesday.
"The minimum wage will remain at its current level," Aurangzeb confirmed, adding that the decision was made after careful consideration of inflation trends and fiscal space. The current minimum wage stands at Rs37,000 per month, which was raised from Rs32,000 last year.
Responding to public and media criticism over the lack of a new wage hike, the finance minister emphasized the importance of contextualizing the decision. “If we talk about increasing salaries for government employees, then the conversation should also include ministers’ salaries,” he said.
Aurangzeb addressed the recent salary hikes for top parliamentary office holders, including the Senate chairman, deputy chairman, National Assembly speaker, and deputy speaker. Their salaries were significantly increased in a move that drew public scrutiny.
When asked if these salaries had jumped from Rs250,000 to Rs2.15 million per month, Aurangzeb redirected attention to the fact that many ministerial positions had not seen a salary adjustment in years. “The cabinet ministers' salaries were last revised in 2016. Had they been adjusted annually, the recent increase wouldn’t seem so large or sudden,” he explained.
The finance minister also referenced the recently approved 10% salary hike for government employees under Budget 2025-26, noting that the increase was made within the limits of fiscal discipline and available resources.
Despite concerns from labor unions and economic analysts about rising living costs, the government has opted for wage stability rather than another increase. Officials say the priority remains fiscal consolidation and targeted relief measures in critical sectors like agriculture, housing, and small businesses.
The announcement has sparked mixed reactions, with critics calling for further support for low-income workers, while government representatives defend the policy as a necessary balancing act amid broader economic challenges.
