Last month, the Punjab caretaker cabinet approved Rs32000 per month minimum wage for all workers in the province. However, given the rate of inflation and prices of essential goods, Rs32,000 is a meagre amount which does not fulfil the basic needs of any ordinary family. There is also the issue of whether even this modest increase will be consistently implemented and enforced as past experience shows us that this is always doubtful.
Amidst historically high inflation, the minimum wage can be a tool for achieving social justice and reducing poverty and inequality in society. We must take into account the inflation rate when fixing the minimum wage and ensure that it is enforced in both the formal and informal sectors.
Imtiaz Ahmed
Rawalpindi
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