B-2: Living Wage for a Sustainable Pakistan: Bridging Gaps, Building Equity
The Government of Pakistan needs to:
- Establish that living wages are not just a philanthropic initiative but essential for the economic productivity of workers. A living wage contributes to a thriving economy and promotes a sustainable business environment.
- Set up effective and comprehensive data collection and analysis on living wages, particularly in rural settings, to guide policy formulation. This includes understanding wage disparities across different regions of Pakistan, such as rural versus urban settings.
- Implement policies to close the gap between minimum wage and living wage in Pakistan by introducing targeted social protection measures and gradually increasing minimum wage standards.
- Encourage collaborative effort between the government, private sector, and civil society to ensure that living wages are not only implemented by large organisations but also across supply chains. This includes working with smaller businesses and suppliers to ensure they meet fair wage standards.
- Develop a clear regulatory framework to ensure businesses are incentivised to pay living wages. This includes providing financial or regulatory incentives to companies that adhere to living wage standards, while disincentivising those that do not.
- Recognise that living wages should vary by sector and region, considering factors such as the cost of living, healthcare, transportation, and education. The government should allow for regional minimum wage boards to set local living wage standards.
- Strengthen labour unions and other worker representation bodies to negotiate living wages and ensure that employers and employees are in alignment on wage standards.
- Address the impacts of climate change on livelihoods, especially for vulnerable groups who are most at risk from environmental disasters, by incorporating climate resilience into wage policies.
- Support civil society advocacy of the long-term benefits of paying living wages, including higher employee productivity, lower turnover rates, and overall economic growth with examples where businesses have seen growth after implementing living wage policies.
- Align local wage policies with international standards and conventions on labour rights, such as those set by the European Union (EU), to ensure Pakistan’s competitive standing in global markets and improve export prospects.
