In a developing economy like Pakistan, minimum wage is a fundamental question of social justice and parity. The government of Khyber-Pakhtunkhwa has set Rs36,000 as the minimum wage in the province. Although the step should be appreciated, it remains to be seen if it is implemented. The stark reality is that the current minimum wage often falls short of covering basic living expenses. In urban centres like Karachi and Lahore, where the cost of living is significantly higher, many workers find themselves struggling to make ends meet. Inflation has eroded the purchasing power of the wage, pushing many into a cycle of poverty despite their employment. The rising costs of essential goods, including food and housing, have outpaced wage increases, leaving many workers in a precarious financial situation.
Moreover, the informal sector, where a large proportion of Pakistan’s workforce is employed, frequently disregards minimum wage regulations. This sector’s lack of oversight exacerbates income inequality and leaves workers vulnerable to exploitation. Ensuring compliance across all sectors is imperative for any wage policy to be effective. A good example are the domestic workers in our households, who have no protection or rights and who do not earn anything remotely close to the minimum wage set by the government. Raising the minimum wage offers benefits that reach beyond the individual worker. Higher wages lead to greater consumer spending which in turn can spur economic growth. A workforce that is better compensated tends to be more productive and innovative, creating wider economic advantages. Furthermore, equitable wages help enhance social stability and decrease dependence on government assistance, contributing to a more sustainable economic environment. This country runs on the sweat and blood of the working class and the least the government can do is to ensure they earn a respectable income.
