Punjab’s Minimum Wage Boost: Effective or Empty?

Asem Mustafa Awan
Islamabad: The Punjab government’s recent announcement of increasing the minimum monthly salary of laborers to Rs 37,000 is nothing more than a hollow promise in a country where laws often exist only on paper.

According to the notification, which comes into effect on July 1, 2024, the daily wage for laborers will be Rs 1,423.

Although the announcement was issued by the Labour and Human Resources Department with an emphasis on equal pay for women and men, it is an illusion of progress that hides the grim reality faced by millions of workers in Pakistan.

For the country’s working class, this decree is yet another example of empty rhetoric that fails to address the systemic inequalities entrenched in Pakistan’s labor landscape.

The truth is that laborers in Pakistan are subjected to severe exploitation, unsafe working conditions, and wages that barely cover basic needs. The government’s increase to Rs 37,000 may sound like a positive development, but it barely scratches the surface of the deep-rooted issues facing the country’s workforce.

With inflation skyrocketing and basic necessities like food, housing, and healthcare becoming more expensive by the day, even the newly announced minimum wage will do little to uplift workers from the clutches of poverty. Food prices, utilities, and other essential services have become increasingly unaffordable, and the gap between the rich and the poor continues to widen.

The bigger problem is that many laborers may never actually see this wage increase. Employers across various sectors, especially in informal and semi-formal workplaces, routinely flout labor laws. Whether it is garment factories, construction sites, or brick kilns, laborers are often paid far less than the legal minimum wage, and violations of labor rights are rampant.

The vast majority of these workplaces lack oversight and inspections, allowing employers to operate above the law. The Labour Inspectorate, the body responsible for enforcing these laws, is chronically understaffed, underfunded, and often compromised by corruption. Thus, the new wage rate is unlikely to change anything for millions of workers who remain trapped in a cycle of exploitation.

Beyond wage theft, the exploitation of labor in Pakistan involves several other serious issues. Child labor is a chronic problem in sectors like agriculture and domestic work. Workers are often subjected to abuse, harassment, and unsafe conditions, and attempts to organize for better rights are met with threats or outright violence.

Women workers, despite promises of equal pay, frequently face discrimination and lack access to any form of justice. The government’s announcements fail to address these systemic issues, making the new wage declaration more about optics than real change.

The core of the problem lies in the power dynamics within Pakistan’s economy, which is dominated by a few wealthy families, landlords, and industrial interests. These elites have no incentive to empower the working class and have built their fortunes on the backs of exploited laborers.

The government’s notification is thus more about creating a façade of a pro-labor stance rather than challenging these deeply rooted power structures. Real change requires not just policy announcements but a committed overhaul of the system that enables such widespread exploitation.

Furthermore, labor laws in Pakistan are poorly publicized and even more poorly enforced. Most workers, especially those in informal sectors, are unaware of their rights and lack the power to demand them. Without a robust mechanism to ensure compliance, the recent wage increase will likely be ignored by employers and the government alike.

This notification risks becoming just another unfulfilled promise in a long line of labor policies that have failed to deliver on their objectives. The lack of effective enforcement and monitoring ensures that such laws remain on paper, serving as mere symbolic gestures rather than instruments of actual reform.

The consequences of this exploitation extend beyond the labor force to the very fabric of society. Families living on meager wages cannot afford proper education, healthcare, or even basic nutrition, perpetuating a cycle of poverty that affects future generations.

This underinvestment in human capital not only diminishes economic productivity but also fosters broader socio-economic problems such as crime and instability. The government’s failure to address these issues holistically undermines any progress that could be made through such wage increases.

The disconnect between policy announcements and ground realities presents a stark challenge to Pakistan’s future stability and growth. A nation cannot prosper while neglecting the rights and welfare of the majority of its workforce.
Genuine reform must involve more than mere proclamations; it requires establishing independent and empowered labor courts, a properly funded and non-corrupt labor inspectorate, and the political will to confront entrenched business interests that thrive on the backs of exploited workers. Laborers must be educated about their rights and supported to claim them without fear of retaliation or job loss.

The international community can also play a significant role by holding Pakistan accountable for its labor rights record. Trade agreements and foreign aid should be contingent upon measurable improvements in labor rights and enforcement.
Civil society, labor unions, and human rights organizations must work together to demand more than just empty promises from the government; they must demand systemic change that addresses the roots of labor exploitation.

Ultimately, Pakistan’s progress depends on how it treats its most vulnerable citizens. The increase in minimum wage to Rs 37,000 should have marked a significant step towards a fairer society.
Instead, it serves as a stark reminder of the government’s failure to tackle the core issues of exploitation and inequality.

It is time for the people to rise and demand not just wages, but justice, equity, and dignity for all. Only then can Pakistan truly move forward towards a more just and prosperous future.

Asem Mustafa Awan has extensive reporting experience with leading national and international media organizations. He has also contributed to reference books such as the Alpine Journal and the American Alpine Journal, among other international publications.