This paper explores the living wage in Pakistan by providing consolidated and updated living wage estimates for two rural regions and one urban region of Pakistan. It contextualizes the living wage estimates with respect to other poverty and wage indicators and highlight gaps between these indicators and living wage estimates. The paper then examines the existing policy framework on returns to labour in general and minimum wages in particular and demonstrates its shortcomings in ensuring decent wages for workers. Finally, it concludes by discussing possible policy choices within the prevailing political economy milieu of Pakistan.