THE ‘admission’ of the Sindh Employees’ Social Security Institution that over 80pc of industries had not implemented the officially notified minimum wage of Rs37,000 per month in the province highlights the widespread violation of the law at the expense of millions of workers.

However, this breach is not limited to the industrial sector or Sindh. The situation in the services sector, where few are paid minimum wages, is more alarming. Women work for less wages than their male colleagues though they put in an equal number of hours and do the same job.

At Wednesday’s post-budget press conference, Finance Minister Muhammad Aurangzeb himself admitted that industry in particular and the private sector in general are not willing to pay minimum wages. The lame explanation was that the government had not announced increased minimum wages in the new budget. His response underlines the helplessness of the state before employers who do not give a hoot about the law.

The large-scale informality in the economy due to the lack of any credible attempt to document unregistered businesses has deepened the challenge of enforcing the minimum wage, leaving workers vulnerable to exploitation. But the main reason for non-compliance is the systematic annihilation of trade unions by the state at the behest of employers over the last four decades. Thus it is foolish to expect toothless and corrupt provincial employees’ social security organisations to force wealthy employers to implement the minimum wage.

Enforcement of the latter across the board is also linked to implementing other labour laws and active labour unions putting pressure on delinquent employers. Overall, the lack of enforcement of laws, including those related to minimum wages, is contributing to poverty and inequality.

If the authorities can seek punitive legislation for tax compliance, they can also draft a similar bill for implementation of the minimum wages rather than ceding to employers’ diktat.

Published in Dawn, June 13th, 2025