Due to the nation’s failure to implement minimum wage legislation and a historic increase in inflation, Pakistanis are living in appalling conditions. The minimum wage of Rs25,000 per month, which was established ten months ago, is reportedly not being paid to 80% of unskilled workers, according to the Pakistan Institute of Labour Education and Research (PILER). A recent World Bank survey also revealed that 83% of Pakistani households do not receive the daily minimum of $2 needed to meet their basic necessities.
According to PILER Executive Director Karamat Ali, 80% of unskilled workers do not receive the minimum wage, and historically high inflation has made people’s suffering worse. The purchasing power was considerably impacted by the 35.4% inflation rate in March.
Although the Punjab government recently declared a rise in the minimum wage to Rs 32,000 per month, Ali claims there is no mechanism in place to oversee compliance of the government order or to verify which commercial and industrial establishments are paying their employees what. In order to finance necessities like food, clean water, education, and healthcare, he proposed that each worker receive at least Rs 50,000 per month.
Ali claims that 83% of households in Pakistan do not receive the required $2 per day, citing a World Bank (WB) survey. The WB study is 18 months old, and during that time, inflation has nearly doubled while the value of the rupee relative to the US dollar has fallen by more than half.
According to the executive director of PILER, “putting the WB report in the context, one can imagine how badly the people’s purchasing power has gotten impacted in the wake of six-decade high inflation and massive rupee devaluation.”
Although several governments have come and gone, the World Bank study has not yet been implemented. Since workers are essentially forbidden from organising under the auspices of trade unions, trade unions have likewise failed to respond to the report. Many employees lack the necessary documentation to file a lawsuit since their contracts do not automatically renew when they expire.
