The Punjab government has stepped up efforts to protect workers’ rights as the Punjab Assembly passed a bill to regulate the minimum wage at Rs40,000 and introduce key legal reforms in the social security system.
The Punjab Employees Social Security (Amendment) Act 2026 was approved with a majority vote, bringing amendments to the decades-old Employees Social Security Ordinance, 1965.
Under the new legislation, the minimum wage has been formally aligned at Rs40,000. However, officials noted that the existing law still reflects an outdated salary cap of Rs22,000, creating legal and administrative complications.
The mismatch between the updated minimum wage and the old maximum salary threshold has led to challenges in implementing social security contributions and departmental procedures.
The amendment proposes modern legal reforms to bring the social security framework in line with current economic realities.
Authorities emphasized the need to validate social security contributions paid since July 2022 to resolve ongoing compliance issues.
Officials said that without these reforms, departments have been facing operational hurdles in enforcing labor laws effectively.
The bill will now be sent to the Punjab governor for final approval before it becomes law.
The move reflects the provincial government’s broader commitment to strengthening labor protections and ensuring fair wages amid rising economic pressures.