Fixation of minimum wages for unskilled workers: SHC directs govt to publish notification

KARACHI: The Sindh High Court on Friday directed the Sindh government to immediately publish a notification on fixation of minimum wages for unskilled workers.

The court however ordered that since the grievance of the employers about fixation of minimum wages has come on record that rate is inequitable, therefore, the government regardless of the notification must refer the matter to Sindh Minimum Wages Board for reconsideration under section 6 (5) of the Sindh Minimum Wages Act 2015.The direction came on petitions of employers federation and others that challenged fixation of minimum monthly wage of Rs25,000 for unskilled workers by the Sindh government.

They submitted that Sindh government in order to score political mileage announced during the budget session that minimum wage of workers was being increased from Rs17,500 to Rs25,000 per month without even initiating statutory requirements as contained in the Sindh Minimum Wages Act.

The employers had earlier objected recommendation of the minimum wages board on various legal and factual grounds, they said.

The government instead of considering employers’ offer issued impugned notification by fixing the minimum wage Rs25,000 per month, though the secretary labour did not sent reference to the board proposing Rs25,000 per month to be minimum wage.

They submitted that 43% increase in minimum wage was irrational and without any legal basis which will have consequential effect in terms of variable cost on account of allowances, leave bonus and gratuity, etc.