MINIMUM WAGE:
A
minimum wage is the lowest remuneration that employers shall legally pay their
workers.
The
Minimum Wages are calculated so that an employee can reasonably maintain his
family for a month.
In
Pakistan Minimum Wages are Rs. 15,000/- this is far short of amount required to
maintain a family for a month.
Spartan Family
Budget for a family of 5 is Rs. 37,000/- (on the basis of cost of living in the
month of April 2016.) Copy attached.
Henry
Ford was founder of Motor Company, in January 5, 1914 he announced that he will
pay US $ 5 per day to his employees as
against the then prevailing wages of $ 2.34 per day.
His
friends tried to revise his decision. He hit the jackpot when he declared “I
want my workers to be my customer”. Thus he put America on the way to
consumer economy
The
logic is simple. Minimum Wage earners spend entire earning, increased wages
mean more spending. More spending mean more demand for goods and services
giving impetus to economy, resulting in more jobs and more taxes.
I
have no data, but my hunch is that increase in minimum, wages will increase
cost of production only marginally this can easily absorbed by curtailing other
expenses.
Now who will take the bold step and become
Henry Ford of Pakistan?
The
increase may be in two stages, at first an increase of Rs. 10,000/- to Rs.
25.000/-
Then
again another increase of Rs. 12,000/- to Rs. 37.000/- ;
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