Wage trends: Pakistan
Fair Labor member companies have been collecting data on the average monthly wages of workers in Pakistan since 2020. Despite increased wages in 2022 and 2023 in the two largest garment manufacturing provinces (Punjab and Sindh), this report shows that workers’ wages remain below living wage estimates.
Between 2021 and 2023, rising inflation and inadequate minimum wage-setting frameworks (including lack of effective worker representation) contributed to the growing living wage gap. While this report is not centered on a particular worker demographic, gender inequity may also play a role in wage trends.
The data in this report is drawn from FLA’s Fair Compensation Dashboard and is made publicly available as part of FLA’s efforts to promote legal adherence to minimum wages in Pakistan, ensure wage transparency, and support living wages for workers.
Recommendations for companies and suppliers
To drive progress on purchasing and production practices that support living wages for workers in alignment with GWLC estimates for Pakistan, FLA recommends that companies:
- Work with suppliers to take into account the challenges and recommendations outlined in FLA’s October 2025 issue brief on challenges in minimum wage compliance and wage deductions for garment and textile workers in Pakistan. Companies should ensure that costing and purchase orders enable suppliers to meet legal and fair wage requirements, including proper implementation of wage structures across skill levels and transparent, voluntary deductions for factory-provided services based on actual costs.
- Engage with costing colleagues to understand how wage progress in the Sindh and Punjab provinces can mitigate the company’s risk of human rights due diligence violations related to fair wages and poverty conditions. Buyers must improve their negotiation and pricing tactics to ensure legal and fair compensation for workers in Pakistan.
- Continue to verify with suppliers that they are implementing the updated minimum wage regulations for all workers.
- Ensure suppliers have effective grievance mechanisms and are supporting the right of workers to unionize and exercise collective bargaining without interference.
- Engage with suppliers to ensure that worker engagement, skills-training, and compensation systems continue to improve as wages and conditions improve in Pakistan, especially for women workers.
- Fair Labor Accredited companies and suppliers should update supply chain wage data analysis and actions taken to implement their company’s fair compensation blueprint. It is recommended that companies and suppliers report on their high-level fair compensation blueprints update publicly.