The official all-employee figure comes from the Pakistan Bureau of Statistics Labour Force Survey, which puts the average monthly wage for paid employees at approximately PKR 39,000, with a median around PKR 33,600. That is the honest national number, and it is low because roughly 72% of non-agricultural employment in Pakistan is informal, which drags the all-employee average down.
That is not the number you hire against. Salary aggregators cite a much higher average of around PKR 82,100 and a median near PKR 70,700, and those reflect the formal, urban, professional market where international employers actually recruit. Both are “correct” for what they measure. The practical takeaway: ignore the single headline figure and price against the specific industry, city, and seniority band, because the gap between the informal-economy average and a formal professional salary is enormous.
Here is how gross monthly pay breaks down by seniority for formal professional roles in 2026.
USD conversions use an approximate rate of PKR 280 to the dollar in early 2026. This is the single biggest caveat in any Pakistan salary guide: the rupee has been highly volatile, moving from around PKR 100 to the dollar in 2017 to roughly PKR 280 in early 2026. Always structure offers in rupees, because a USD-pegged figure can misstate real local pay badly.
Wages have been rising fast in nominal terms but often falling in real terms, because inflation ran 20% to 30% annually through 2023 to 2025. Nominal salary increases in that range have frequently failed to keep pace with the cost of living, so budget for regular adjustments to preserve purchasing power.
Average salary in Pakistan by industry
Industry is the biggest single driver of pay in Pakistan, and the spread from top to bottom sectors is severalfold. The table below covers the industries where international employers hire most, drawn from 2026 salary data.
Technology is where foreign hiring concentrates. Pakistan has 300,000 to 400,000 IT professionals and produces 25,000+ IT graduates a year, and it ranks among the top five countries on global freelancing platforms. Senior developers working for international clients regularly clear PKR 500,000 a month, many times the local average, which is still a fraction of equivalent Western salaries.
Average salary in Pakistan by city and region
Where you hire shifts the number by roughly 10% to 15%. Karachi and Lahore, the two largest commercial hubs, sit at the top; Islamabad pays slightly less on average but pairs it with a different cost base.
Karachi commands the highest salaries, followed closely by Lahore, with both anchoring the country’s finance, corporate, and export sectors. Islamabad runs a little lower on headline pay but is strong for international-organisation, consulting, and senior remote roles. For most foreign employers, the professional talent concentrates in these four cities, so offers should benchmark to the city rather than the national figure.
Minimum wage in Pakistan (2026)
Pakistan sets its minimum wage at the provincial level, so the correct floor depends on where the employee works. Following the 2025-26 budget cycle, the rates are PKR 40,000 per month in Punjab, Sindh, and Khyber Pakhtunkhwa, and PKR 37,000 in Balochistan and the Islamabad Capital Territory, effective 1 July 2025. These apply to unskilled adult workers; semi-skilled and skilled categories carry higher provincial floors.
The framework sits under the Minimum Wages Ordinance 1961, with each province operating its own Minimum Wage Board that reviews and notifies the binding rate. Two things matter for budgeting. First, always apply the higher of the applicable provincial rates for the employee’s location. Second, enforcement is uneven, and the ILO estimates 30% to 40% of formal-sector workers earn below the legal minimum despite formal contracts, so compliant employment is a genuine differentiator rather than a given. The employment framework in Pakistan also sets a 48-hour work week and requires payslips detailing gross pay, deductions, and taxes.
What does it actually cost to employ someone in Pakistan?
This is where Pakistan stands apart. The mandatory employer contributions are calculated on the minimum wage, not on the employee’s actual salary, which makes them extremely cheap for professional hires.
A few points that matter. The EOBI employer contribution is 5% of the minimum wage, not the employee’s salary, so it is fixed at roughly PKR 2,000 per month whether the worker earns PKR 40,000 or PKR 500,000. Provincial social security (PESSI in Punjab, SESSI in Sindh, and equivalents) is around 6% but also capped at the provincial insurable-wage ceiling, so it tops out near PKR 2,400 a month. Both apply only to Pakistani nationals in establishments with five or more workers. The result is an effective employer multiplier of just 1.07 to 1.12x for a professional hire, one of the lowest statutory burdens of any major hiring market.
For context on the employee side: Pakistan’s income tax is progressive, running from 0% up to 35% on the highest salaried incomes, with no tax below PKR 600,000 of annual income. The employer withholds and remits this to the Federal Board of Revenue, but it is the employee’s tax, not an employer cost. There is no mandatory 13th-month salary.
The low cost comes with a compliance load, not a light one. EOBI, provincial social security, and FBR tax withholding each have their own registration, filing, and monthly deadlines, and Pakistan’s rules vary by province. Misclassifying an employee as a contractor exposes you to back taxes and retroactive contributions.
Get the exact employer cost for your role with the employee cost calculator →
How to hire in Pakistan without setting up a local entity
Pakistani law requires employees to be paid under a compliant contract, with the employer registered with the FBR, EOBI, and the relevant provincial social security institution. A foreign company cannot employ someone directly without a registered local entity, and setting one up means incorporation, tax registration, and a local payroll function before your first hire can start.
An employer of record removes that requirement. The EOR becomes the legal employer of your worker in Pakistan, handling the contract, FBR tax withholding, EOBI and provincial social security registration, and payroll, while you direct the person’s day-to-day work. That turns a multi-month entity setup into a hire measured in days.
The structural point when you choose a provider: Multiplier owns its entity rather than routing your employment through a third-party local partner. One accountable team holds the statutory liability, payroll changes happen inside the same cycle instead of waiting on a partner relay, and pricing is a flat monthly fee with FX and all statutory costs disclosed before you sign. Multiplier operates through more than 160 owned entities across 150+ countries, so the same accountability carries to the next market you hire in. You can compare the two routes in the benefits of choosing an EOR vs local entity, see the full scope of employer of record services, or read how Multiplier handles payroll in Pakistan.
Book a Multiplier demo to hire compliantly in Pakistan →
Frequently asked questions
What is the average salary in Pakistan in 2026?
The official average gross monthly salary in Pakistan is approximately PKR 39,000 (around USD 140) for all paid employees, per the Pakistan Bureau of Statistics Labour Force Survey, with a median near PKR 33,600. That national figure is low because the large informal economy pulls it down. For the formal, urban professional market where international employers hire, salary aggregators put the average closer to PKR 82,100 and the median near PKR 70,700.
What is the minimum wage in Pakistan?
Pakistan sets minimum wage by province. As of 2026, it is PKR 40,000 per month for unskilled workers in Punjab, Sindh, and Khyber Pakhtunkhwa, and PKR 37,000 in Balochistan and the Islamabad Capital Territory, effective 1 July 2025. Semi-skilled and skilled workers have higher provincial floors. Employers must pay at least the rate set for the employee's province.
How much does it cost to employ someone in Pakistan?
Employer costs in Pakistan are unusually low. Mandatory contributions are EOBI (5% of the minimum wage, roughly PKR 2,000 per month, capped) and provincial social security (around 6% of wages, also capped at the provincial ceiling). Because both are calculated on the minimum wage rather than actual salary, the effective employer add-on for a professional hire is only about 1% to 2% of gross pay. Use Multiplier's employee cost calculator for an exact figure.
What is a good salary in Pakistan?
A gross salary above PKR 100,000 per month is comfortably above-average in Pakistan and supports a solid urban lifestyle for a single professional. For a family of four in a major city, PKR 100,000 to PKR 150,000 allows comfortable living with savings, and PKR 200,000+ enables an upper-middle-class lifestyle. In Karachi and Lahore, professional roles typically pay above the national average.
Can I hire employees in Pakistan without setting up a company there?
Yes, through an employer of record (EOR). An EOR like Multiplier employs workers in Pakistan on your behalf, handling the contract, payroll, FBR tax withholding, EOBI, and provincial social security. You direct the employee's work while the EOR carries all legal obligations. Multiplier operates through its own owned entity in Pakistan rather than a third-party partner.
