Living Wage in Pakistan: Estimates,Adoption and Policy Challenges

Working Paper
Written By Anker Research

Anker Research Institute Working Paper Series | Number 12

Kabeer Dawani and Asad Sayeed

ABSTRACT

How much does it cost for a worker and their family to live a basic but decent life in Pakistan? This paper explores this question using the concept of a living wage. The paper provides consolidated and updated living wage estimates for two rural regions and one urban region of Pakistan. We then contextualize the living wage estimates with respect to other poverty and wage indicators and highlight gaps between these indicators and our living wage estimates. The paper then examines the existing policy framework on returns to labour in general and minimum wages in particular and demonstrates its shortcomings in ensuring decent wages for workers. Finally, we conclude by discussing possible policy choices within the prevailing political economy milieu of Pakistan.

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