Pledging parity for minimum wage and cost of living to alleviate poverty in Pakistan.
In Pakistan, minimum wage only provides 68% of the estimated actual living cost for a typical family, leaving nearly a quarter of the population to live below the poverty line.
This is further exacerbated by high inflation rates and skyrocketing food costs, plunging low-income families further into poverty, hunger and malnutrition.
Outlining the Issues
Low wages coupled with the increase in costs of petrol, electricity units, transport and food are leading low-income workers and their families to become marginalized, with little-to-no access to the resources needed to live a full, productive life.
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Pakistan has grappled with extreme inflation for months. In January, the country’s consumer price index rose to 13 percent—the highest in two years, according to the Pakistan Bureau of Statistics.
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Minimum wage compliance in Pakistan is weak. In 2014-15, an ILO study found 53.4% of workers received less than the statutory minimum wage in the textile, garment, and footwear sectors. Minimum wage non-compliance is more prevalent in smaller factories and factories in lower tiers, which are not directly being monitored by brands/retailers.
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The low wage is creating a vicious cycle: food insecurity and hunger leads to a lack of strength and energy needed to work; the immune system weakens, leaving them more susceptible to illness, causing them to miss work and fall further below the poverty line.
What's at Stake
If a mother is malnourished during pregnancy, that can be passed on to her children, leading to stunting. Child stunting, both physical and cognitive, can lead to a lifetime of impacts. Adults who were stunted as children earn, on average, 22% less than those who weren’t stunted. In Ethiopia, stunting contributes to GDP losses as high as 16%.
Poverty threatens education as it creates many barriers to education including a lack of money for uniforms and books. Education can be a great equalizer and can open the door to jobs and other skills that a family needs to survive and thrive.
It's time to do better.
It's time to do better. It's time to do better.Become a Responsible Business Alliance Member
Make the pledge to alleviate poverty and become an agent of change for our country’s workforce. We ask that you pledge to increase your minimum wage to Rs 50,000/- month.
We are the Responsible Business Alliance (RBA), a coalition of individual people, small businesses and large companies working together to alleviate poverty and improve quality of life for the workforce of Pakistan by advocating a higher minimum wage that is more in line with today’s cost-of-living standards.
Member Organizations
Why Join the RBA
Amir Wain
CEO, i2c Inc
Naveed Ali Baig
CEO, Innovative Pvt Ltd
Tanveer Karamat
President, Avanceon
Usman Sheikh
CEO, xiQ
Raza Ali Khan
Partner Architect, Wasif Ali Associates
Responsible Business Alliance (RBA) Members are changing lives
Happy employees lead to higher productivity and quality. By implementing minimum wage of Rs 50,000/month not only are RBA members helping their hardworking staff earn a living wage, but they are also benefiting by having a more productive, committed, and happier workforce.
The RBA members are seeing the benefits already. Take the pledge and join the other RBA members in alleviating poverty from Pakistan.