In recent years, there has been a concerted effort to increase wage levels across the country. This has been complemented by a significant increase in minimum wage nationally. However, in the backdrop of an inflationary economic environment, there is a significant opportunity and responsibility for businesses to ensure that their workers can be protected and better compensated, at least to the extent of a living wage or income.
While building the value of a living wage standard in our extended value chain for the benefit of our partners and suppliers, we had the opportunity to learn about the lived experiences and challenges of many in our larger ecosystem. Managing the many elements of a decent standard of living, including food, water, housing, education, healthcare, transportation, clothing and other essential needs such as provision for unexpected events, without a living wage is no longer possible.
Case in Point: The Plight of Pakistan's Working Class
With the escalating cost of living, despite working full time, millions struggle just to make ends meet. These workers dream of providing their children with quality education to secure a brighter future for them. Yet, the current economic conditions coupled with the responsibility of their larger families make this aspiration unattainable.
This reality is not unique, it is a shared plight among many in Pakistanis who strive daily to provide a decent life for their families against increasingly insurmountable odds. It is essential to take steps towards advocating for wages that reflect the realities of rising inflation and living costs, whilst enabling more equitable and effective economic growth and contribution for all.
The importance of a living wage cannot be overstated. Firstly, it directly impacts the wellbeing of employees. Financial security allows them to focus on their jobs without the constant stress, which in turn, leads to increased productivity and job satisfaction.
This translates to a more stable and efficient workforce, reducing turnover rates and the associated costs of training new employees. For countries like Pakistan, where economic instability is a persistent issue, implementing a living wage could be a step towards greater economic growth and resilience.