ISLAMABAD  -  Following the approval of President Dr Arif Alvi, the federal government has notified the minimum wage rate at Rs32,000 per month.

A notification issued by the Ministry of Finance said the minimum wage had been set at Rs32,000 per month.

“The President has been pleased to enhance with effect from 1st July, 2023 and till further orders, minimum wage/gross salary to all the Civil Employees of the Federal Government as well as the civilians paid from Defence estimates including contingent paid staff and contract employees employed against civil posts in Basic Pay Scales on standard terms and conditions of contract employment.

Those whose gross salary is less than Rs32,000/ shall be allowed the Special Allowance to bridge the gap,” said a notification issued by the Ministry of Finance on Tuesday.

According to the notification, the minimum wage rate would be subject to income tax and would be admissible during leave and entire period of LPR except during extra ordinary leave. However, it would not be treated as part of emoluments for the purpose of calculation of Pension/Gratuity and recovery of House Rent. Meanwhile, it would not be admissible to the employees during the tenure of their posting/deputation abroad. It will be admissible to the employees on their repatriation from posting/ deputation abroad at the rate and mount which would have been admissible to them had they not been posted abroad.

The notification stated that the office of the Chief Commissioner, Directorate of Industries & Labour Welfare, ICT, Islamabad has already notified the rate of minimum wage at Rs32,000/per month as announced in Budget 2023-24. The above Special Allowance/ increase in minimum wage shall be accommodated from within the budgetary allocation for the year 2023-2024 by the respective Ministries/Divisions/ Departments and no supplementary grants would be given on this account.