On Labour Day 2025, Pakistan stands at a crossroads in its commitment to workers’ rights. Despite official proclamations of support, the reality for many workers remains grim. The government’s recent increase in the minimum wage to Rs37,000, announced in the federal budget, has yet to be enforced effectively. In Sindh, for instance, workers continue to earn below this threshold, with no formal notification issued to implement the new wage.
The informal sector, encompassing a significant portion of the workforce, remains largely unprotected. A joint study by the Small and Medium Enterprises Development Authority (SMEDA) and the International Labour Organisation (ILO) revealed that Pakistan’s informal economy is valued at $457 billion, nearly 64% larger than the formal economy. Workers in this sector often face exploitation without recourse to legal protections.
Trade unions, once a powerful force for workers’ rights, now struggle to operate effectively. Less than 1% of Pakistan’s formal workforce is unionized , and many unions face suppression from both employers and the state. The National Industrial Relations Commission (NIRC) has been criticized for creating hurdles for unions, with some arguing for its abolition to empower workers.
The government’s failure to enforce labour laws, such as the minimum wage, has led to widespread violations. In Rawalpindi, for example, only 30–40% of private organizations comply with the minimum wage law . Many workers continue to receive wages below the legal minimum, with extended working hours and no overtime compensation.
To address these issues, the state must take proactive steps to protect workers’ rights. This includes enforcing existing labour laws, strengthening trade unions, and ensuring that all workers, regardless of sector, receive fair wages and working conditions. Labour dignity should be upheld through satisfactory salaries, safe working environments, health coverage, and educational support for workers’ families.
As Pakistan observes Labour Day 2025, it is imperative that the government moves beyond rhetoric and takes concrete actions to improve the lives of its workers. Only through genuine reform can the nation honor the true spirit of Labour Day.
