Minimum wage versus house affordability
Pakistan is among those countries which have minimum wage law. Minimum wage is raised in the annual budget. In the current budget 2017-18, minimum wage has been increased from Rs. 14,000/- to Rs. 15,000/-. People who are living on minimum wages have also needs and definitely want decent living. But who can afford to buy a home with the minimum wage?
Minimum wage versus house affordability
The smallest homes in Pakistan are of size 2 Marla. The average price of 2 Marla house in Pakistan is approximately 30 LAC. A person on minimum wage can buy 2 Marla house in Pakistan after spending 16.6 years income. But world’s affordable house price to income ratio is 1:5 or a person can buy house if he spends 5 years income. Even if we see the rents, smallest houses like 2 Marla have rents of Rs. 10,000/- per month, which is unaffordable for the people on minimum wages. This is why the people on minimum wages are living in slum areas or renting single rooms.
The government has not included housing in national development policy
The government has allocated lot of funds for development projects. But unfortunately once again, government has not included the housing in its development policy. We need social housing or government housing revolution in Pakistan like the western countries. In UK, 67% housing is the government housing. UK government provides free homes to the people who are living on minimum wages or are jobless. On the other hand, there is no government housing for the homeless people in Pakistan. Due to sky high house price, homelessness is rising in Pakistan. Many people are forced to sleep on footpaths or live in slum dwellings. Unless we start the housing revolution in Pakistan, minimum wage people will be unable to buy or rent decent homes.