- Symbolic welfare cannot replace justice — workers need fair wages, not temporary cash transfer schemes
In the recently announced Federal Budget 2025–26, the Government of Pakistan has once again left private sector workers in the cold by maintaining the minimum wage at Rs 37,000 per month. This decision comes at a time when inflation continues to erode the real incomes of ordinary citizens, and the cost of living is becoming unmanageable for working-class families across the country.
While federal government employees from BPS-1 to BPS-22 have been granted a 10 percent increase in their basic salaries along with additional allowances, private sector workers have received nothing in comparison. This widening pay gap reflects an unequal economic policy that disproportionately benefits the salaried elite in the public sector while ignoring the needs of millions who labour in the private and informal economy.
The budget also allocated a record-breaking Rs 716 billion to the Benazir Income Support Programme (BISP). While cash transfer schemes like BISP are necessary for short-term poverty alleviation, they cannot and should not replace the fundamental right of a worker to earn a living wage. Charity cannot substitute for justice.
The harsh reality
In today’s economic climate, Rs 37,000 is far from adequate. A modest household in a city like Lahore, Karachi, or Islamabad incurs unavoidable monthly expenses including rent, food, transport, electricity, and basic healthcare. Rent alone for a one-room portion often exceeds Rs 12,000 to Rs 15,000. Monthly food and grocery bills for a small family can cross Rs 15,000. Add to that the costs of utilities, school fees, medicines, and transportation, and it becomes clear that Rs 37,000 is barely enough for survival — let alone for living with dignity.
When wages do not match the basic cost of living, workers are forced to cut corners, incur debt, or take on multiple jobs just to make ends meet. This situation contributes to a cycle of poverty, stress, and exploitation that saps productivity and undermines national morale.
Inflation continues, but wages don’t
Inflation has remained stubbornly high in Pakistan, with prices of essential goods and services rising steadily. Yet, minimum wages have not kept pace with this economic reality. Year after year, workers are told to be patient, to bear the burden of inflation, while government officials and legislators continue to enjoy increased perks and allowances.
By freezing the minimum wage yet again, the state is effectively transferring the cost of inflation onto the poorest segments of society — those who can least afford it.
Role of provinces and missed opportunity
After the 18th Constitutional Amendment, wage-setting authority technically rests with the provinces. However, the federal government’s stance heavily influences provincial policies. Sadly, no provincial government this year has stepped forward to raise the minimum wage independently, missing a critical opportunity to support their constituencies.
In past years, provinces like Sindh had taken bold steps to increase wages above the federal level. Such leadership is sorely missing this year.
Moving ahead
It is time to move beyond symbolic welfare and towards meaningful economic justice. The government must:
— Raise the minimum wage to reflect the true cost of living in Pakistan. A realistic adjustment would place the monthly minimum wage between Rs 45,000 and Rs 50,000 at the very least.
— Develop a transparent system that links wages to inflation, ensuring automatic adjustments each year.
— Enforce existing minimum wage laws. In many cases, employers do not even pay the current legal minimum.
— Reform and empower Minimum Wage Boards by including independent economists, labor rights advocates, and worker representatives.
Conclusion
Pakistan’s workers — whether they are factory workers in Faisalabad, domestic staff in Rawalpindi, or construction labourers in Gwadar — deserve more than symbolic sympathy. They deserve fair wages, legal protections, and basic human dignity.
The 2025–26 federal budget was an opportunity to signal a new direction —towards fairness, inclusion, and respect for labour. That opportunity has been missed. But the struggle for a living wage must continue. It is not just an economic demand — it is a moral imperative.
The Author is a socio-political analyst and researcher affiliated with Pakistan & Gulf Economist, Daily The Spokesman, the Pakistan Africa Institute for Development and Research (PAIDAR), and the Pakistan Institute for Development and Research