There have been several reports lately in the media telling us about the plight of the common man since the unprecedented and multiple increases in oil and energy prices and the rapid fall in the value of the rupee against to the US dollar.
There is absolutely no doubt that the already stressed poor have begun to suffer more as the prices of basic foodstuffs rise, threatening their already frugal family meals twice or sometimes even once a day.
Furthermore, the skyrocketing cost of every item in the lower middle class’ essential monthly shopping basket is also pushing them to a harder life and there is a genuine fear that this class will also be floating around or below the threshold. of poverty soon.
Although the budget did not address the concerns of the above two categories, I suggest that the corporate sector take the initiative to ease the burden on their low-income employees and partly address the problem of l income and wealth inequality by increasing the monthly salary of everyone who earns 100,000 rupees or less by 15%.
This is another widely covered topic in the media with no one visibly taking action.
The cost increase due to the above measure can easily be financed by decreasing the monthly salaries of all employees earning more than Rs1 million, Rs1.5 million, Rs2 million and Rs3 million per month by 5pc, 10pc, 15pc and 20pc, respectively.
While the above increase will only partially address inflation-related issues for low-income earners, the proposed decreases will not affect employees who are in higher income brackets, except in the extent to which their excess monthly income adds to their wealth will decrease to some extent.
The non-executive members of the boards of large companies will have to take the lead in this regard because the executive directors or senior managers concerned will not take any decision to reduce their own salaries. Surely it’s against human instinct for them to do that.
Posted in Dawn, July 5, 2022