Minimum Wage Vs. Cost of Living: Workers Fight For Survival

In Pakistan, the minimum wage is Important for millions of workers. It is a matter of human dignity and survival for them. In Pakistan, Inflation has reached 38%, and food prices have risen to 48%.

This drastically reduces workers’ purchasing power. The existing minimum wage does not cover the workers’ and their families’ basic living costs, especially in cities like Islamabad, Karachi, and Lahore.

Many workers struggle to afford essentials like food, shelter, and healthcare. This economic pressure keeps them trapped in poverty. A fair wage is essential for workers to meet their basic needs and improve their quality of life.

Despite government policies, enforcing the minimum wage is weak in Pakistan. Many industries, especially in the informal sector, ignore these rules. They pay workers much less than the required minimum wage.

A significant portion of Pakistan’s workforce is employed in the informal sector, where minimum wage laws are frequently ignored. Workers in agriculture, brick kilns, Domestic Workers, and small businesses face even tougher conditions. This lack of enforcement leaves many workers vulnerable and struggling to make ends meet.

In Karachi, the estimated monthly expenses for a single person are about Rs44,000 without rent, while a family of four may spend around Rs150,000.

In Lahore, a single person spends roughly Rs42,000 per month, and a family of four may need about Rs145,000.

Rent prices in both cities vary depending on location, but a one-bedroom apartment in the city centre typically costs Rs25,000 to Rs30,000 per month.

The case for a strong and enforced minimum wage goes beyond social justice; it’s also an economic necessity. A well-paid workforce supports a healthy economy. When workers earn a living wage, they have more money to spend. As businesses thrive, the economy grows. In short, fair wages create a positive cycle that benefits everyone.

Trade unions in Pakistan play a vital role in holding the government and employers or management accountable. Announcing 36,000-PKR wage increases is not enough; we must ensure they are implemented. Unionized workers are more likely to receive their rightful wages because they can negotiate with employers. For those in the informal sector, unions act as their voice, pushing for legal reforms and better enforcement of wage laws.