The Government of Punjab has officially increased the Punjab minimum wage 40000 per month for workers, according to a notification released by the Labour and Human Resource Department on September 10, 2025. The wage hike applies to all industrial and commercial establishments across the province and is effective immediately.
Breaking down the new wage structure, the daily wage for an eight-hour shift is set at Rs. 1,538.46, while the hourly wage stands at Rs. 192.31. This ensures clarity for both employers and workers regarding overtime, short shifts, and partial workdays.
Allowances and Deductions
The notification outlines specific provisions for deductions related to food, transport, and accommodation. Employers can deduct Rs. 100 per meal, Rs. 1,800 per month for transport, and Rs. 2,000 for housing, but only with the mutual consent of the employee. This ensures transparency and prevents unilateral wage cuts.
Importantly, the new policy does not restrict employers from offering higher wages. Workers already earning above the Rs. 40,000 threshold will not see their salaries reduced, and employers remain free to pay more based on skill, experience, or performance.
Equal Pay for Equal Work
One of the most significant aspects of the notification is the emphasis on gender equality in wages. The government has made it clear that female workers must be paid the same as their male counterparts for performing equal work. This clause aligns with global labour standards and strengthens protections for women in the workforce.
Context and Implementation
This wage increase stems from the Punjab Budget 2025–26, announced in June, where the provincial government had proposed raising the minimum wage from Rs. 37,000 to Rs. 40,000. The September notification now formalizes that commitment.
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Labour Minister Malik Faisal Ayub Khokhar called the decision a “historic step” that will provide much-needed relief to workers and help improve their quality of life. However, activists argue that a living wage should be closer to Rs. 75,000 to truly meet the rising costs of living.
Conclusion
The Punjab government’s move to increase the minimum wage is a major milestone in labour policy, promising better financial stability for workers. Yet, effective enforcement will be key to ensuring that employers comply and that workers across all sectors receive the wages they are legally entitled to.
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