EFP files petition against hike in minimum wage

01 Sep, 2021

KARACHI: Employers Federation of Pakistan (EFP) and others on Tuesday filed a petition in Sindh High Court (SHC) against the minimum wage of Rs.25000 in Sindh.

Khalid Mahmood Siddiqui, representing EPF and more than 100 industrial units and companies, filed the petition in court, which is already seized with the petitions of same nature, filed by Karachi Chamber of Commerce & industry and other trade bodies.

A division bench of SHC headed by Justice Salahuddin Panhwar hearing the petition ordered to club all the petitions by observing that hearing of all petitions separately can cause complications. The court fixed September 02 for the hearing. Sindh Government and Minimum Wage Board have been made respondents.

Petitioners submitted that Sindh Government announced an increase in minimum wage of the workers from Rs17500 to Rs25000 per month without even initiating statutory requirements as contained in the Sindh Minimum Wage Act and stated that as many as 43 percent increase in minimum wage was irrational and without any legal consideration, which would have consequential effect in terms of variable cost on account of allowances, leave bonuses and gratuity, etc.

The petitioners said the EFP after consultation with the members, informed the government that they were agreed to increase the minimum wage from Rs17500 to Rs19000 per month, but instead of considering the employers' offer, the Sindh government had issued an impugned notification by fixing the minimum wage of Rs25000 per month for unskilled workers.

The petitioners pleaded the court to declare the impugned notification as unlawful and requested to suspend the implementation of notification.

Copyright Business Recorder, 2021

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