KP Mandates Rs. 40,000 Minimum Wage for Workers

The Khyber Pakhtunkhwa Government has formally declared a minimum monthly wage of Rs. 40,000 for workers across factories in the province, as per a notification from the Labour Department. This mandate ensures that all industrial and commercial establishments pay no less than the government-set minimum wages. The directive, effective from July 1, 2025, establishes a monthly wage of Rs. 40,000 and a daily wage of Rs. 1,538.46.

The notification explicitly obligates employers in industrial and commercial sectors to comply with these minimum wage standards as set by the KP government. These rates serve as a baseline, not a cap, and employers must not reduce wages for workers already earning above this threshold. However, employers are free to offer higher wages unilaterally or via collective agreements, factoring in higher grade, skill, experience, elevated cost of living, or other special considerations.

For other worker categories, wages must meet or exceed the notified minimum. Employers are required to adjust remuneration rates for piece-rated workers to guarantee that an eight-hour workday over 26 days monthly yields at least the prescribed minimum wages. Female and transgender workers are entitled to identical minimum wages as male workers for work of equal value.