Workers remain deprived of minimum wage

LAHORE:

Despite the legal declaration of a fixed monthly minimum wage in Punjab, full implementation remains elusive even within government departments as daily wage employees continue to be deprived of their full salaries.

According to sources of the Express Tribune, the Punjab government initially raised the minimum wage to Rs37,000 in April 2025, but due to rising inflation, increased it further to Rs40,000 in September 2025. This translates to Rs1,538 per day for an 8-hour work shift. However, there has been little to no enforcement due to manpower shortages and a lack of resources within the Labour Department.

Official records obtained by The Express Tribune revealed that the Labour and Human Resource Department faces several hurdles in enforcing the revised minimum wage law. The Labour Welfare Department currently has only about 200 inspectors to monitor millions of entities across the province.

Furthermore, there are no centralised records of wage registrations, employee identification, or financial documents in the private sector, making it nearly impossible for inspectors to trace violations. In major districts like Lahore, Faisalabad, Rawalpindi, Sialkot, Multan, Gujranwala, Chakwal, Kasur, Gujrat, Sheikhupura, and Jhelum, approximately 70 per cent of private institutions are not complying with the minimum wage law.

A private sector employee, Mushtaq Lodhi, reported being paid only Rs20,000 to Rs22,000 per month. “The government must establish a dedicated enforcement force,” implored Lodhi. Similarly, Usman Shaukat, an office boy at a local government office echoed Lodhi’s grievances. “The Rs40,000 wage is just on paper, while actual payments range between Rs22,000 and Rs24,000,” claimed Shukat. On the other hand, Ali Ahmed, a daily wage employee at a public hospital, stated that although his contract stipulated Rs40,000 as his wage, he only received Rs36,000, with Rs5,000 to Rs6,000 deducted under various pretexts.

Dr Qais Aslam, an economist, stated that although the government issued wage increase announcements, it failed to implement a comprehensive framework. “While orders for a Rs40,000 minimum wage have been issued, actual compliance is negligible. Many government institutions themselves are not paying the full amount while in the private sector, the contractor system and trade unions continue to suppress workers. Only ISO-certified organizations are reliably paying the full wage, but they are very few,” noted Dr Aslam.

Amna Malik, head of a labour rights organization, stated that increasing the staff in the Labour Department and expanding the inspection network was crucial. “Temporary financial support or incentives should be given to small businesses to help them transition to the new wage. There is also a need to review wages regularly in line with inflation and promote the concept of a “living wage.” Awareness campaigns via labour unions, civil society, and the media are also necessary to educate workers about their rights and to encourage reporting of underpayment,” said Malik.

Chaudhry Ghulam Ghaus, Secretary of the Punjab Civil Secretariat Employees Association, confirmed that although the government had announced a Rs40,000 minimum wage, many government departments paid only Rs30,000 to Rs35,000 to their daily wage staff. “Full salaries are only paid to employees whose salaries are transferred via bank accounts. Cash-paid employees continue to receive less,” informed Ghaus, who condemned the practice and demanded that all payments be made via bank transfers to ensure transparency.

Punjab Labour Minister Manshaullah Butt praised Chief Minister Maryam Nawaz Sharif’s "historic initiatives" for labour welfare and assured that field inspection systems will be strengthened to protect workers’ rights. Butt pledged to make field teams more efficient and accountable and affirmed that the Chief Minister had directed strict action against institutions failing to pay the legal minimum wage.