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The common salary in Pakistan is 82,100 PKR (Pakistani Rupee) per 30 days, or around USD 296 in keeping with the exchange rates in August 2024.
The Pakistan average is significantly lower than the US average (USD 7,900) but comparable to India (USD 430), Ukraine (USD 858), and the Philippines (USD 884). It’s one in all the numerous explanation why Pakistan is a viable alternative to those popular outsourcing destinations.
Nevertheless, you’ll need a more comprehensive evaluation to grasp the whole expenditure on a Pakistani worker.
In this text, we’ll share vital figures and comparisons related to the typical salary in Pakistan. We’ll also explore the country’s payroll rules and top reasons to outsource there.
Table of Contents
Let’s start.
Average salary in Pakistan: Key figures
The common salary figure for a rustic is the sum of the salaries of the working population divided by the whole variety of employees. It may include advantages corresponding to housing, transport allowance, insurance, etc., on top of the worker’s basic salary.
The common salary will likely be a superb indicator of the standard income of a working citizen within the country.
Listed here are some key salary figures for Pakistan in keeping with Salary Explorer, a salary comparison website:
According to Salary Explorer, the typical remuneration in Pakistan may vary between 20,700 PKR per 30 days (average minimum salary) and 365,000 PKR per 30 days (maximum average). Please keep in mind that that is a mean salary range, and the actual maximum salary could also be higher.
The median salary in Pakistan is 70,700 PKR per 30 days.
If we sort the worker salaries in Pakistan in ascending or descending order, the median represents the central point within the distribution. In other words, half the Pakistani employees earn greater than 70,700 PKR per 30 days, while the opposite half earn less.
These national average salary figures may provide you with a general estimate and help compare expenditure on worker salaries amongst different countries.
Nevertheless it won’t enable you to determine the precise remuneration for every worker in your organization.
For that, you’ll need to contemplate other aspects like
- The sort of industry.
- Years of experience and qualification of the worker.
- The sort of work: entry level, skilled, etc.
- The mode of labor: full-time, part-time, distant, etc.
- The region where you’re operating.
- The associated fee of living within the country.
So let’s take a more comprehensive have a look at the salary information in Pakistan.
A. Average salary by industry
The common salary in a rustic may vary significantly with the sort of industry.
Pakistan is understood for its cotton, textile, and agriculture exports, and these industries have a big share within the country’s GDP. As a result of this reason, the manufacturing sector normally employs a big portion of the Pakistani workforce.
Here’s an industry-wise breakdown of the typical salaries in Pakistan:
| Industry | Average Monthly Salary |
| Energy | 76,700 PKR |
| Information Technology | 84,300 PKR |
| Healthcare | 122,000 PKR |
| Real Estate | 90,000 PKR |
| Media / Broadcasting | 77,300 PKR |
| Telecommunication | 76,400 PKR |
Source: salaryexplorer.com
B. Average salary by region
While the capital city of Islamabad is the executive center of the country, Karachi and Lahore are the foremost business hubs in Pakistan.
The common worker salary within the country relies on which city you’re operating in.
Here’s the salary report for major Pakistani cities:
| City | Average Monthly Salary |
| Karachi | 88,700 PKR |
| Lahore | 87,200 PKR |
| Islamabad | 76,700 PKR |
| Faisalabad | 85,700 PKR |
Source: salaryexplorer.com
C. Salary variations by education
As a general rule of thumb, a Pakistani worker with higher educational degrees gets the next pay scale than their peers with a lesser degree for a similar sort of work.
But how does the pay scale change with the education level?
In response to Salary Explorer:
- Employees with a diploma or certificate normally earn 17% greater than those fresh out of highschool.
- Employees with a bachelor’s degree have 24% higher average salaries than certificate and diploma holders.
- Professionals with post-graduate degrees enjoy a 29% salary gain over bachelor’s degree holders.
- Advanced degrees corresponding to a Ph.D. fetches 23% more income than those with a master’s degree.
D. Salary variations by experience level
The salary scale of a Pakistani worker also varies significantly with the years of experience they’ve.
Employees with experience between two to 5 years earn 32% more salary than freshers. The salary gain is even higher (36%) when employees reach the five-year experience mark.
The following salary hikes at ten, fifteen, and twenty-year milestones are about 21%, 14%, and 9%, respectively.
E. Annual salary increment rate
Employees in Pakistan are prone to get a salary increment of 8% every 19 months. In contrast, the world average is significantly lower at a 3% increment every 16 months.
The common annual salary increment rate is 5%.
1. Average annual salary increment by industry
IT and healthcare professionals generally get the best salary increments in Pakistan.
Here’s how the salary increase rate in Pakistan varies with industry:
| Industry | Average Annual Increment |
| Banking | 2% |
| Energy | 4% |
| Information Technology | 6% |
| Healthcare | 8% |
| Travel | 1% |
| Construction | 3% |
| Education | 5% |
Source: salaryexplorer.com
2. Average annual salary increment by experience
The common increment rate also varies with the years of experience an worker has.
| Experience Level | Average Annual Increment |
| Junior Level | 3-5% |
| Mid Level | 6-9% |
| Senior Level | 10-15% |
| Top Management | 15-20% |
Source: salaryexplorer.com
F. Minimum average wage
The minimum wage is the minimum remuneration that employers must pay to their hourly wage staff.
The minimum wage in Pakistan varies with its provinces and is regulated by their respective governments to safeguard the interest of a day by day wage employee.
Here’s the minimum wage data for every province:
| Province | Monthly Minimum Wage |
| Balochistan | 32,000 PKR |
| Islamabad Capital Territory | 32,000 PKR |
| Khyber Pakhtunkhwa | 32,000 PKR |
| Punjab | 32,000 PKR |
| Sindh | 25,000 PKR |
Source: wageindicator.org
So the bottom monthly minimum wage in Pakistan is 25,000, or about USD 90. In contrast, the bottom monthly wage within the USA stands much higher at USD 1,257.
Nevertheless, the Pakistani minimum wage could possibly be fairly compared with other Asian and Latin American offshoring hubs, corresponding to India (appr. USD 97), Mexico (appr. USD 450), and the Philippines (appr. USD 186).
G. Average salary for popular job Titles
IT and healthcare-related job titles corresponding to software engineer, programmer, dentist, etc., generally command a superb salary package in Pakistan.
Let’s take a have a look at the typical salary information for some popular jobs in Pakistan:
| Job Title | Average Monthly Gross Salary |
| Controls Software Engineer | 62,500 PKR |
| Graphics designer | 50,700 PKR |
| Chartered Accountant | 71,000 PKR |
| Electrical Engineer | 80,000 PKR |
| Human Resources Manager | 127,000 PKR |
| Dentist | 187,000 PKR |
| Business Development Manager | 124,000 PKR |
| Chef | 50,300 PKR |
Source: salaryexplorer.com
Disclaimer: The salary information mentioned within the article is taken from various external salary surveys. The actual figures may vary with location, worker experience, and the newest job trends.
Payroll rules in Pakistan
How does staying updated on payroll laws enable you to?
For overseas employers, it could help estimate the actual cost of an worker by summing up taxes, social security contributions, and other compensations they’re obliged to pay. It also helps them stay compliant with payment and other labor laws.
As for workers, they get a greater idea of their disposable income by factoring in income tax and other mandatory deductions over their base salary.
All Pakistani corporations with twenty or more employees must draw a proper employment contract with the workers, stating the salary, additional compensations, working hours, etc.
Employers must contribute 5% of the worker’s base salary towards the pension fund in comparison with the worker’s contribution of 1%. These deductions aren’t applicable for workers earning greater than PKR 400 a day or PKR 10,000 a month.
Moreover, profitable corporations with greater than 20 employees are required by law to share their profit margins with the workers. They need to pay a profit bonus to an worker who offered a minimum of 90 days of service in a 12 months.
How does average income in Pakistan compare with other countries?
It’s a superb practice to research and compare a rustic’s standard income from different perspectives to raised assess the way it applies to your small business.
As per the World Bank, the gross national income (GNI) per capita in Pakistan is around USD 1,470. For reference, the GNI per capita for India and the US is USD 2,150 and 70,930, respectively.
In response to Salary Explorer, the typical hourly wage in Pakistan is 470 PKR (USD 1.65). Compared, employees within the USA, India, and Ukraine earn USD 46, 2.43, and 4.83 per hour, respectively.
One other technique to gauge average income is to contemplate the earnings of a family within the country.
In response to CEIC data, the annual household income per capita in Pakistan is around USD 587. CEIC data states that the annual figure is calculated using the information for monthly average income and average household size provided by the Pakistan Bureau of Statistics.
The common household income for other Asian countries like Oman and Bangladesh is around USD 4,964 and 603, respectively.
3 reasons to outsource to Pakistan
Pakistan has been one in all the foremost exporters of textile and agri-products, besides other Asian competitors like China, Bangladesh, India, and Vietnam.
As a result of its strategic location, the country acts as a bridge between eastern and western Asia (and Europe), making it a cheap outsourcing and offshoring destination.
Lately, Pakistan can be witnessing a growing variety of foreign IT and ITES (Information Technology Enabled Services) corporations outsourcing their business processes to the country.
Let’s take a have a look at some major reasons behind this surge.
1. Alternative to over-saturated markets
Tech outsourcing has traditionally been a stronghold of nations like India, Ukraine, Poland, the Philippines, etc.
As a result of their popularity, these markets are sometimes overcrowded, resulting in high service costs. A startup may often find it hard to seek out a superb outsourcing vendor at reasonably priced rates.
They either need to overshoot their budget to rent a vendor of selection, limiting their bottom line. Or, they could need to accept an inexperienced vendor, which affects their production quality and quantity.
Pakistan offers a solid alternative to such corporations by broadly offering similar advantages as these markets while keeping the operating costs low.
2. Young and expert workforce
Around 65% of the Pakistani population is below the age of 30, making it one in all the youngest workforces on the earth. In 2024, the median age in Pakistan is 20.5 years.
Pakistan also has the third largest English-speaking population on the earth. It’s one in all the highest countries to send students to universities within the US and UK for higher education.
Furthermore, technical education within the country has taken some massive leaps in recent times. Over 80,000 IT-related educational institutions within the country make sure the regular availability of expert IT professionals.
Pakistani tech professionals are also highly sought-after on freelance platforms like Upwork for offering quality services at competitive rates. Job titles like web developer, graphic designer, software engineer, etc., are in great demand and fetch high salaries in Pakistan.
3. Fast-growing tech infrastructure
Pakistan is rapidly upgrading its technological infrastructure to fulfill the necessities of tech outsourcing corporations.
All major Pakistani cities now offer stable web connectivity through fiber optic and cellular networks. It helps teams stay connected and enhances collaboration.
Pakistan also has strong data protection and IP (mental property) laws to safeguard each the businesses and the purchasers.
Wrapping up
Pakistan is a viable outsourcing destination, especially when you’re operating with a limited budget and aim to maximise your profit margins.
Nevertheless, estimating the expenditure on a Pakistani workforce could possibly be tricky for foreign corporations.
You should utilize the salary information in this text to decide on an acceptable pay scale on your employees while staying compliant with payment laws in Pakistan.