Mohammed Islam’s Post

Every few years this question arises and we see the same old arguments. This particular mindset of policymakers (decisionmakers) is one indicator of why the accounting industry is not growing in Pakistan. One big four does not exist in Pakistan while another has significantly downsized its operations. There is a need to seriously rethink how the industry is being run!

It’s disappointing to see a partner at RSM Pakistan supporting underpaying trainees by calling it a “stipend.” He overlooks the financial needs of trainees who significantly contribute to the firm’s operations. Mr. Haque’s advice for trainees to seek part-time jobs ignores the stressful nature of firms’ training, with late hours and weekends making additional employment impractical as well as it’s not allowed by ICAP to persue part time job while training. This practice is a sophisticated form of bonded labor in Pakistan. Accounting firms are businesses, not charities. They earn substantial profits from the hard work of their employees, including trainees. Fair pay and reasonable working hours are essential for their well-being and professional development. This mindset within RSM Pakistan’s leadership needs to change. #FairPayForTrainees

To ensure an unbiased understanding of the situation, it's imperative to independently evaluate the following key aspects: - Comparative analysis of how other chartered accountancy bodies, such as The Institute of Chartered Accountants of India & Institute of Chartered Accountants in England and Wales (ICAEW) are addressing the matter of stipends in relation to minimum wage standards in their respective countries. - The mandatory articleship period should be viewed as an investment in oneself , my fellow trainees, rather than a period for earning. Firms offer invaluable training that yields lifelong benefits. - During the articleship, focus should solely be on learning and passing examinations. Pursuing part-time earnings at the expense of these priorities is counterproductive. - Accusations of firms earning unjustly lack merit, especially considering the comparatively low compensation in Pakistan's audit and assurance sector on a global scale. Ultimately, respect for the profession and The Institute of Chartered Accountants of Pakistan (ICAP) is paramount. Constructive dialogue, not finger-pointing, is the path to resolving issues. Waqas Bukhari Inam ul Haque FCA !!!

I partially agree with Inam's view, but only because firms would curtail hiring if they are asked to pay more. We all know that industry experience is no alternative for firm experience. So more students would miss out. It also means even more workload on fewer trainees. ICAP should instead provide relief by regulating tution fees and forcing firms to cut down on working hours. Further, if we treat trainees like normal minimum wage employees, it means no more long exam leaves. Only 7-10 days leaves and that too if circumstances permit, like normal jobs. If trainees are not willing, firms would hire accas instead who are nearing completion of their qualification.

My younger brother sent me a screenshot of Mr. Haque’s outdated views on audit trainees’ stipends, so I decided to share my thoughts on LinkedIn. The idea that trainees shouldn’t ask for stipend increases and that comparing it to the minimum wage is disgraceful is absurd. This outdated thinking persists because trainees fear career repercussions for demanding fair conditions. It’s disappointing to see RSM Pakistan’s partner support underpaying trainees and suggesting part-time jobs, which are impractical given their demanding schedules and ICAP regulations. This is modern bonded labor. Accounting firms profit from trainee labor, so fair pay and working conditions are essential for their well-being. ICAP’s leadership needs a mindset overhaul. People Justifying exploitation due to past hardships is absurd. Trainees deserve fair compensation and respect for their contributions. A shift in perspective and fair policies are necessary for a sustainable work environment. #fairpayfortrainees #RSMPakistan #ICAP

Disgraceful comparisons to the minimum wage and the assumption that trainees shouldn't seek raises for their stipends are ridiculous. Due to trainees' fear of career consequences for requesting equitable circumstances, this out-of-date attitude continues to be practiced. Part-time work isn't feasible for trainees due to their busy schedules and ICAP restrictions, and it's disheartening to learn that RSM Pakistan's partner supports underpaying them. This is the service system of today. Accounting organizations rely on trainee labor, therefore, it's crucial to ensure that they receive fair compensation and work in safe settings for their well-being. A paradigm shift is required within ICAP's leadership. People It is ridiculous to use previous suffering as an excuse for exploitation. Trainees should be recognized and compensated fairly for their work. A sustainable work environment requires a change in mindset and equitable policies. Inam ul Haque FCA CA Pakistan

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Mostly #CA_Firm_Partners_start_weeping in Pakistan when they heard a minute increase in trainee's stipend rate #modernslavery 💡💡 🤔Let us learn from a simple example: on Average Small level firm in Pakistan = 30 trainees (assuming) Stipend increased (17%) from (Rs 19300 to 22600) in 2024= Rs 3300/Month increase Incremental Cost to Firm= Rs3300* 30 Trainees = Rs 99000/Month (356 US$ only 😂). 👉Solution: (Use Value added technique) Charge from the client or just build 1 new client on retainership simple. Or just put 1 dose injection 💉to clients as firms mostly do. Firm Partners started weeping that trainee labour cost (Stipend) increased and start try not to increase and raise voices as they are the representatives and major influencers of the institute. Firms on the other hand are charging millions from their clients. Stipend rates just cost firms a very very minute figure against their service prices due to modern slavery. As a result, trainees have been bestowed a stipend increase rate (17%) lower than the inflation rate (24.8%) in Pakistan causing trainees financial damage. This is called #modernslavery 💡🔑 Firms should follow a maximum band of stipend rather than be stuck with the minimum band as in ICAP training policies there is no restriction on the upper band and the firms who pay more than the minimum band are called #Social and #ethical firms who care about their labor in true sense to grow. #modernslavery #icap #stipend #ca #cacommunity #zahidmunir #castudents #minimumwage #Labour

I’m happy to share that I’ve obtained a new certification: Trainee Accountant from Botswana Institute of Chartered Accountants! WHAT DOES IT MEAN TO BE A TRAINEE ACCOUNTANT? A Trainee Accountant at BICA is an individual who is enrolled in BICA’s professional qualification program and is undergoing practical training to become a Chartered Accountant. It means the person is both studying for professional exams and gaining work experience in an accounting or finance role, typically under the supervision of qualified accountants. 1. Professional Development: • The trainee is working towards completing the Chartered Accountant qualification, which is a globally recognized professional designation. • They are learning technical accounting, auditing, taxation, and financial management skills. 2. Practical Experience: • Trainees are required to gain hands-on experience in a structured work environment (such as in accounting firms or financial institutions). • This experience helps bridge the gap between academic knowledge and real-world application. 3. Mentorship: • As part of the program, trainees are typically mentored by senior accountants or chartered professionals, providing guidance and support. 4. Competence Building: • The role focuses on building core competencies like problem-solving, analytical thinking, and ethical decision-making in accounting practices.