EFP resists minimum wage raise

KARACHI: A day after newly elected PM Shahbaz Sharif announced around 25 percent increase in minimum wage, Employer’s Federation of Pakistan (EFP) president Ismail Suttar on Tuesday said they could not afford the increase as they were recovering from impact of Covid-19.

“The Minimum Wage Board in provinces is the legal institution to decide minimum wage keeping in view inflation and other economic factors,” EFP office-bearers said.

Any increase in wage at the current stage without following mechanism provided in the law would be against the legal practice and would not be acceptable, they added.

They were of the view that increase in the minimum wages would also increase the cost of production and competitiveness of exporting industries.

They pointed that the Supreme Court had fixed Rs19,000 as minimum wage in Sindh and had clarified that the minimum wage could only be fixed by the minimum wage board as per minimum wage ordinance.

EFP urged the prime minister to revisit the decision and withdraw 25 percent increase in the minimum wage, saying any decision should be taken after consultation with stakeholders.