Punjab Assembly Passes Bill Setting Minimum Wage at Rs. 40,000
The Punjab Assembly has approved a significant amendment bill that updates the Employee Social Security laws, establishing a uniform minimum wage of Rs. 40,000 across the province. The legislation aims to bring the social security framework in line with current economic realities and labor standards.
This new bill amends the Employees Social Security Ordinance of 1965 by aligning it with the provisions under the Punjab Employees Social Security Act 2026. One of the key drivers for the amendment is the outdated salary threshold in the existing law, which sets a maximum salary limit at Rs. 22,000. This limit became problematic when the provincial minimum wage was increased to Rs. 40,000, creating legal complications for departments responsible for social security contributions.
The legislation also retroactively validates social security contributions that have been paid since July 2022, addressing previous compliance challenges due to the absence of updated regulations. Following a majority vote in the Assembly, the bill will now be forwarded to the Governor of Punjab for final assent before becoming law.
Officials stated that these amendments are essential to ensure effective enforcement of social security regulations and to reflect the revised wage structure adequately. Starting July 1, 2025, the fixed minimum wage of Rs. 40,000 per month will apply uniformly to unskilled workers across all industrial, commercial, and private sectors. This calculation is based on 26 official working days per month.
The bill also emphasizes equal pay provisions, mandating that men and women receive identical minimum wage benefits. This approach reinforces provincial labor policies aimed at promoting fair and standardized compensation practices regardless of gender.
Stakeholders view the passage of this bill as a landmark step in enhancing labor protections and ensuring the social security system remains robust and responsive to evolving economic conditions within Punjab.