Average Salary in Pakistan in 2024

The average salary in Pakistan in 2024 is PKR 985,000 per year, which is 3,531 USD.

This article will look at how average salaries in Pakistan vary by industry, region, gender and age in Pakistan to help you understand the overall economic situation and what people can expect to earn in different areas and jobs.

Key takeaways

• Average annual salary in Pakistan: PKR 985,000
• Average salary per month: PKR 82,100
• Median monthly salary: PKR 70,700
• Minimum monthly wage: PKR 37,000
• Minimum hourly wage: PKR 470 PKR
• Gender pay gap: 82%
• Pakistan’s average income is lower compared to countries like the United States, making it an attractive destination for outsourcing due to cost-effective labor.

Median salary in Pakistan

The median wage in Pakistan is PKR 70,700 per month. This figure represents the middle value of all salaries in the country, meaning half of the population earns less than this amount, while the other half earns more.

The median is often considered a more accurate measure of typical earnings than the average salary, as it is not distorted by extremely high or low incomes.

(Source: SalaryExplorer)

Minimum wage in Pakistan

Minimum wage in Pakistan is the lowest amount an employer can pay an employee to meet their basic needs. As per the actual figures, minimum monthly wage in Pakistan is PKR 37,000 (Source) and minimum hourly rate is 470 PKR (Source).

In Pakistan minimum wage is set at provincial level not national. Each of the four provinces – Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan – has the authority to set its own minimum wage rates as per local economy. However, federal government often provides guidelines or sets a baseline which provinces can follow or exceed. 

This decentralized approach allows provinces to adjust minimum wage as per their region’s needs and economic realities. For example Sindh has set higher minimum wages than other provinces sometimes to reflect its more urban and industrial economy.

Average household income in Pakistan

In Pakistan, the average monthly income per household varies significantly with household size.

• For individuals living alone, the average income is PKR 10,086.
• In households with 2-4 people, the average monthly income drops to PKR 4,467.
• For families of 5-7 people, it further decreases to PKR 3,191, while those with 8-10 people earn an average of PKR 2,721.
• The lowest income is seen in larger households with more than 10 people, averaging PKR 2,397 per month.

Factors affecting the average salary in Pakistan

Next to inflation rates and working hours, there are several things affect the average salary in Pakistan including regional differences, education, age and gender.

• Regional differences: Salaries in Pakistan vary based on the region, with urban areas generally offering higher pay due to industry concentration. Cities like Karachi and Quetta have higher salaries compared to rural areas like Punjab. The capital city, Karachi, stands out for its high salaries, influenced by its economic prominence. Local economic conditions and cost of living affect these salary differences.
• Education: Higher education levels result in higher salaries as advanced degrees mean specialized skills. However there is a significant gender gap, men earn more than women even at same education level. This shows unequal distribution of education benefits across genders.
• Age: Earnings increase with age as experience and skills accumulate. Young workers especially those 15-24 years old face high unemployment and generally lower starting salaries. Salaries peak in 45-54 age range and decline slightly as workers approach retirement.
• Gender: Gender pay gap is a big issue, women earn less than men in most sectors and education levels. Cultural norms, limited access to high paying jobs and lower workforce participation contribute to this gap, affecting actual earnings and salary expectations of women.
• Market demand: External economic factors such as industry trends and outsourcing opportunities create varying demands for specific skill sets in the labor market. This market demand influences average salary levels across different sectors in Pakistan.

Average salary in Pakistan by region

The average salary in Pakistan varies greatly depending on the job location, with a clear distinction between rural and urban areas, smaller towns, and bigger cities.

Urban areas generally offer a higher employee’s base salary compared to rural areas due to more job opportunities, better economic conditions, and a higher cost of living. This trend is evident in the national average salary, which serves as a benchmark for understanding income disparities across different regions and industries within the country.

Among the provinces, Balochistan has the highest average monthly salary of PKR 27,659, which is higher compared to Sindh at PKR 24,664, Khyber Pakhtunkhwa at PKR 24,168, and Punjab with the lowest average of PKR 23,367.

These figures illustrate that regions with major cities, like Sindh and Balochistan, generally command higher average salaries than rural areas, such as Punjab.

Average salary by education

In Pakistan, people with higher education levels generally expect to earn more, contributing to a higher average wage. However, there is a notable gender gap in salary expectations at all education levels.

As educational qualifications increase, so do salary expectations. For example, individuals with advanced degrees (bachelor’s degree or master degree) expect higher salaries compared to those with less education. Despite this trend, men consistently expect higher salaries than women, even with similar levels of education.

This disparity becomes more pronounced with higher education. At the highest education levels, men’s expected salaries are, on average, 27% higher than those of women with the same qualifications. This indicates that while higher education typically leads to a better average wage, women still face a significant gap in salary expectations compared to their male counterparts.

Average salary by age

How much people in Pakistan earn changes with age. Generally, older workers earn more, but younger people face lower wages and higher unemployment. The average salary in Pakistan reflects these variations and has significant implications for the country’s economy and global competitiveness.

• For those aged 10-14, the average salary per month is PKR 9,999, with a median of PKR 8,820. This shows that younger workers often earn very little.
• When people move into the 15-24 age group, their average salary increases to PKR 16,895, with a median of PKR 15,000. However, this age group has high unemployment rates, especially among young women, making it hard for them to find good-paying jobs.
• For workers aged 25-34, the average salary goes up to PKR 24,087, with a median of PKR 20,000. Despite this, unemployment remains a problem, with 7.3% of people in this age group out of work, and women facing higher rates.
• Salaries keep rising as people get older, reaching an average of PKR 33,075 and a median of PKR 23,000 for those aged 55-64.
• After age 65, average salaries drop to PKR 21,027, with a median of PKR 17,640, as many retire or take on less demanding jobs.

Average salary by occupation

Average salaries in Pakistan vary significantly by occupation, with managers earning the highest, while those in elementary roles earn the least.

• The 2020-21 Labour Force Survey reveals that managers have the highest average salary per month at PKR 68,214, with a median of PKR 60,000.
• In contrast, skilled professionals in various specialized job roles earn an average of PKR 41,815 and a median of PKR 35,000.
• Technicians average PKR 33,553 with a median of PKR 30,000, while clerical support workers earn an average of PKR 34,259 and a median of PKR 32,000.
• The manufacturing sector and service industry workers, such as those in sales and elementary roles, earn significantly less, with an average of PKR 20,770 and a median of PKR 18,000 for services and sales workers.
• Skilled agricultural and forestry workers average PKR 24,917, craft and related trade workers earn PKR 20,091, and plant and machinery operators make PKR 21,721.
• The lowest salaries are found in elementary occupations, averaging PKR 16,238 with a median of PKR 15,000, highlighting the disparity in pay within the Pakistani workforce.

Highest paying professions:

1. Managers
2. Professionals
3. Clerical Support Workers
4. Technicians

Lowest paying professions:

1. Elementary Occupations
2. Services and Sales Workers
3. Craft and Related Trade Workers
4. Plant and Machinery Operators

The gender gap in Pakistan

Although women make up nearly 50% of Pakistan’s population, their workforce participation is significantly lower than men’s, revealing a stark gender gap (Source: Government of Pakistan). This disparity is reflected in the average salary in Pakistan, where the gender pay gap stands at 82%, highlighting the economic challenges women face.

The 2024 Global Gender Gap Report ranks Pakistan 145th out of 146 countries, largely due to limited economic opportunities for women.

Several factors affect this gender disparity, including cultural norms and economic barriers, which lead women to expect lower salaries than men.

For instance, 32% of women expect to earn less than PKR 20,000 per month, compared to 16% of men. These expectations are a result of entrenched cultural attitudes and economic constraints.

In response, the government policies such as the Protection Against Harassment Act, 2022, and the National Gender Policy Framework have been introduced to address these issues.

Despite these efforts, the persistent wage gap and cultural barriers indicate that more effective enforcement and comprehensive reforms are needed to bridge the gender gap and improve economic growth for all segments of the Pakistani population.

Hallmarks of the labor market in Pakistan

1. Many informal jobs

Many people in Pakistan work in informal jobs like agriculture, small shops, and construction where they have no official contract, job security, or benefits like health insurance.

These jobs pay lower and irregular wages because of no regulation, no labor laws, no legal protection and no formal wage structure. Employers in informal sector pay whatever they can or whatever they think the worker will accept.

2. Agriculture is a big employer

Agriculture is one of the biggest sources of jobs, especially in rural areas. Many people work on farms or with livestock. Agricultural work is low-skilled and seasonal, so workers earn less and may not have steady income throughout the year.

Also these jobs have no employee benefits like social security contributions so overall compensation and financial stability of agricultural workers is impacted. This keeps average salaries low, especially in rural areas.

3. Young population, high unemployment

Pakistan has a growing number of young people entering the workforce but job opportunities are limited and often mismatched with their education.

This mismatch leads to intense competition for available jobs and many accept lower wages just to get employed. High youth unemployment further reduces the pressure on employers to offer higher wages as there is a large pool of applicants.

4. Low female participation

Not many women work outside the home compared to other countries. Cultural norms, lack of education and safety concerns are some of the reasons why female workforce participation is low.

When women do work, they often have lower-paying and less secure jobs, especially in sectors where women are more employed, like textiles or education.

5. Child labor

Despite laws prohibiting it, child labor is prevalent in Pakistan, especially in farming, domestic work, and small factories, due to the financial needs of families.

Child labor keeps wages low in these sectors as children are paid very little, which depresses overall wage levels, and employers prefer cheaper child labor over adults.

Comparison of the average salary in Pakistan with other countries

Pakistan is far behind many developed countries in terms of earnings, especially when compared to Western countries. Even in the region, Pakistan lags behind countries like India, where the average salary is around 5,000 USD.

While the cost of living is lower in Pakistan, the employee base salary remains relatively low due to broader economic challenges. These include high inflation, limited industrial growth, and significant youth unemployment.

Furthermore, global economic trends influence these issues, as they affect housing costs and overall purchasing power, leading to reduced quality services and lower salaries in comparison to those in more developed economies.

Sources:

• Government of Pakistan: https://www.finance.gov.pk/survey/chapter_24/12_population.pdf
• SalaryExplorer: https://www.salaryexplorer.com/average-salary-wage-comparison-pakistan-c164
• https://pakobserver.net/pakistan-raises-minimum-wage-to-rs37000-in-budget-2024-25/
• Pakistan Labour Force Survey: https://www.pbs.gov.pk/sites/default/files/labour_force/publications/lfs2020_21/LFS_2020-21_Report.pdf
• World Economic Forum, Global Gender Gap 2024: https://www3.weforum.org/docs/WEF_GGGR_2024.pdf
• Gender, Growth, and Labour Markets in Low-Income Countries Programme: https://g2lm-lic.iza.org/wp-content/uploads/2021/02/GLMLIC-Policy-Brief_035.pdf
• https://www.pbs.gov.pk/sites/default/files/labour_force/publications/lfs2020_21/tables/Table_35.pdf

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