Govt violates minimum Rs37,000 wage policy

In a startling disclosure at the forum of a parliamentary committee on the eve of International Labour Day, a few government departments and contractors of the Parliament cafeteria are not paying the minimum guaranteed wage of Rs37,000 per month to their employees.

This disclosure was made at the forum of the National Assembly Standing Committee on Finance on the eve of May 1 2025, which is celebrated world-wide to promote the cause of the labour class.

The evelation about the violation of the minimum wage policy prompted the Finance Minister Muhammad Aurangzeb to promise to take up the issue with Minister for Human Resources and Overseas Pakistanis Chaudury Salik Hussain. Ironically though, the Human Resource Minister's ministry is violating the minimum wage, which Aurangzeb announced in his first budget speech.

Hussain's ministry is also one of those violators that are not paying the minimum wage, said Member of National Assembly (MNA) Agha Rafiullah who brought up the issue in the committee.

According to a written reply submitted before the National Assembly, MNA Agha Rafiullah revealed that the Overseas Pakistanis Foundation working under the control of the Ministry of Overseas Pakistanis, is paying Rs28,000 monthly to its employees working in various education institutions. This translated to Rs9,000 or 24% less than the minimum guaranteed wage of Rs37,000.

The Finance Minister had demanded the names of the violators and upon learning the details, he promised to take up the matter with the Overseas Minister. Additional Secretary Finance Ministry Amjad Mehmood informed the standing committee that upon inquiry, the overseas ministry claimed that it was paying the minimum wage of Rs37,000.

"When the government is not honouring the minimum wage commitment, then how can we expect it from the private sector?" remarked committee chairman Syed Naveed Qamar.

Agha Rafiullah further disclosed that among the other government departments that were not paying minimum wage were the Ministry for Inter-Provincial Coordination, the National Counter Terrorism Authority, and the National Bank of Pakistan working under control of the Ministry of Finance and Export Processing Zones.

He went on to say that even the employees working at the Parliament's cafeteria are not being paid the minimum wage of Rs37,000 by the contractors.

According to a list submitted in the NA Committee by MNA Rafiullah, the Pakistan Sports Board and Federal Land Commission were not paying the minimum wage either. Additionally, the National University of Technology under the Ministry of Science and Technology, and Pakistan Television (PTV), were found not complying with minimum wage requirements.

He said that the federal directorate of education has also entered into a contract with a non-governmental organisation to pay Rs12,000 to Rs15,000 per month to teachers, which is a violation of the government's policy. Likewise, the Ministry of Interior's licensed private security companies were not paying minimum Rs37,000 wage to their security guards.

In his Labour Day message, Prime Minister Shehbaz Sharif has "reaffirmed Pakistan's unwavering commitment to promoting safe, healthy, and dignified conditions for its workers - the real driving force behind our nation's growth and resilience." "The protection of fundamental labour right is enshrined in our Constitution and fully aligns with the International Labour Organiation's (ILO) core conventions, to which Pakistan is a responsible signatory," according to the Prime Minister.

He stated that Pakistan has taken significant legislative and administrative reforms to further strengthen workers' protections.

Our government has taken important steps to broaden the coverage and impact of institutions such as the Employees' Old-Age Benefits Institution (EOBI) and the Workers Welfare Fund (WWF), ensuring that the fruits of our labour protections are shared more equitably across all segments of the workforce, he added.

"On this important day, I urge all stakeholders, including employers, workers, civil society, and government to join hands in building a culture that respects labour, upholds their rights, and creates opportunities of decent work for all," affirmed PM Sharif.