Currently, over 80 million workers in Pakistan are employed in various sectors, a significant number of whom work in private companies. Unfortunately, the majority of these workers are not only deprived of many fundamental rights guaranteed by the prevailing laws of Pakistan but are also unaware of them.
If even a few of these laws were implemented, it could revolutionise the economic lives of these workers, as having knowledge of one’s rights is essential to claiming them. For example, under The Minimum Wages Ordinance 1961, a Minimum Wages Board has been established which annually decides the minimum wages for workers. Currently, the minimum monthly wage for a worker in Pakistan is 32,000 PKR, which is a basic right for every worker in the country.
Similarly, under The Industrial and Commercial Employment (Standing Orders) Ordinance 1968, it is mandatory for every employer to pay a bonus, in addition to the salary, within three months of the end of any profitable year to those workers who have been continuously employed for at least 90 days during that year. Moreover, under The Companies Profits (workers participation) Act of 1968, it is mandatory for every employer to deduct 5% amount from their gross profits and distribute this amount among workers affiliated with the institution who have at least 180 days of attendance per year, in a specific proportion.
There are numerous labour laws in place aimed at improving the economic lives of workers in Pakistan, granting them various entitlements and even post-retirement benefits. Here a question arises: why are these workers not thriving despite such entitlements?
In my perspective, two primary factors, among others, contribute significantly to this issue. Firstly, misgovernance has led to the inadequate implementation of numerous labour laws and the entitlements they guarantee for workers. Secondly, some employers, despite being aware of these labour laws, deliberately withhold or deny workers their rightful entitlements.
Consequently, the working class continues to suffer increasing impoverishment while industrial owners’ wealth surges dramatically. Ironically, there are many multinational companies operating in Pakistan right now with annual profits in billions, yet thousands of workers associated with these companies are deprived of these basic rights.
If the aforementioned labour laws are fully enforced, the minimum monthly income of workers could increase from 32,000 PKR to an average of 50,000 PKR, which could significantly ease the economic difficulties faced by the working class amidst the prevailing inflation in Pakistan. Additionally, the monthly income of workers should be income tax-free, as a large portion of their salaries is consumed by income tax, and they do not benefit from the taxes deducted from their salaries.
It is essential that the government of Pakistan not only ensures the implementation of labour laws but also makes the salaries of registered labourers’ income tax-free.
WAQAR AHMED RIZVI
ISLAMABAD
