MINIMUM WAGE COMPLIANCE IN PAKISTAN: A DEMOGRAPHIC ANALYSIS

Abstract

This research study explores compliance with minimum wage legislation in the context of the Pakistan labor market. Despite the laws governing the enforcement of minimum wages, compliance varies among demographic and occupational groups. Based on data from the 2018-19 and 2020-21 Labor Force Surveys, our study shows that compliance is lowest among young and old workers, while noncompliance tends to be greater among female workers, those with lower education levels, contractual employees, and those working in the informal sector. These findings highlight the challenging nature of minimum wage enforcement in Pakistan, the need for targeted policy interventions.