T HE minimum wage of the unskilled workers has been increased and fixed at Rs25,000 per month by the federal and provincial governments. The revised wage hasbeenincreasedby25percentandis justified. The fact is that even the revised pay may not enable the employees to counter the hike in the prices of items of daily use.

There is another aspect to the matter which is equally critical and may in the end hurt the very people who are being provided the cushion. The responsibility to pay the revised minimum wage lies with the employers of industrial and commercial establishments irrespective of their paying capacity. Besides, there is anotherexpenselinked to theincreasein minimum wage, which these employers will also have to bear. Most of the employers have been registered by the respecdve provincesunderthe provincial social security schemes. The amount of monthly contribution, which the corporate entities pay on behalf of their secured employees, will increase significantly.

They have been paying the monthly contribution to the social security institution at the rate of Rs1,200 per employee per month, which will now increase to Rs1,500.

Prior to the devolution of labour laws to the provinces in April 2010, the corresponding amount was fixed at six per cent of Rs10,000, or Rs600.

Thereafter, it was fixed at 6pc of the prevailing minimum wage. Till July 2019, the increase in minimum wage was gradual and steady, but since July 2021, the linkage of social security contribution with the minimum wage is causing hardship to the employers. And their hardship can only mean more trouble for the employees; not less.

To provide some relief to the employers, the provincial governments may consider going back to the practice of contributing 6pc of a fixed amount, or 5pc of the prevailing minimum wage. This will provide some financial space to all concerned.

Parvez Rahim Karachi