Average Salary in Pakistan: Full Breakdown by Job, City & Trends

The average salary in Pakistan are important to know for candidates searching for jobs and potential employers or businesses that want to make informed career and hiring decisions. Salaries in Pakistan can vary dramatically by industry, education, experience, and location. This blog will describe those characteristics to help understand the range of salary levels in Pakistan currently.

The salary situation in Pakistan is a rapidly developing and changing topic. When you are approaching a new career, looking for a raise, or finding talent, the average salary in Pakistan helps make sense of the complicated world of salary ranges. Companies look at salary in order to build competitors pay packages, while professionals refer to salary information to assess their own level of pay. Also, for a company considering outsourcing, understanding, the salary trends is an important part of the cost planning.

This blog will cover the basic average salary information by sector, the role of education and experience on salary, alternative by city, and the forecast for salary potential.

What Is the Average Salary in Pakistan?

January 2023 brought an average Salary in Pakistan number, which is the average monthly wage workers have made across all industries and professions each month in Pakistan, of roughly PKR 82,000 (about USD 290- regardless, at best you do have an idea), roughly translating to close to one million PKR annual income.

It’s also worth noting, that you can have an average and a median salary. The average can be affected by a few very high earners, while half of the population’s earnings will result in a very distinct measure of middle salary- median. In Pakistan the median salary is somewhere close to PKR 70,000 a month, and it can be inferred that the median is a slightly lower number than the average.

We can see that there is variation in salaries depending on roles and industries, so this number is intended only as an average guideline, not a set number.

Salary Breakdown by Industry

Industries represent an influential role in defining average salary levels in Pakistan. Some industries shift the average salary upward based on skill requirements, growth in the market, or profit margins while other sectors shifted the overall rate of wage lower.

Industries with High Average Salaries

Healthcare: Medical professionals earn the most. Doctors, pharmacists and specialists make an average monthly salary well above PKR 120,000.

• Information Technology: The IT industry is the fastest-growing, with average monthly salaries approaching PKR 84,000 monthly as demand for technology increased as a direct result of digitalization.

• Real Estate: Sales, marketing, and development roles average monthly salaries of approximately PKR 90,000.

• Telecommunications and Media: Average salaries in the telecommunications sector or Media typically averaged between PKR 75,000 and 80,000 monthly.

Industries with Low Average Salaries

• Education: Teachers and academic staff typically make the lowest salary for their positions, averaging between PKR 60,000 to PKR 70,000 on a monthly basis.

• Fitness and Personal Training: Salaries in this industry seem modest given this sector is rarely in demand and does not reach larger markets.

Industries also experience differences with respect to annual salary increments, with healthcare opportunities and IT careers allowing the possibility of better raises than banking or education.

Impact of Education on Salary

Educational attainment forms a significant part of the average salary for people in Pakistan. Generally, the more education you complete, the greater employment and salary level opportunities you will have.

Most high school graduates earn a baseline salary level, whereas vocational or diplomas will have about a 17% increase. Vocational training will allow for specialty skills they have been trained in.

An undergraduate-degree level will see the salary level go up by about 24% compared to a diploma. This is a big jump because you will be in another set of employment opportunities in professional and management companies.

Master’s candidates typically receive an increase of about 29% above their undergraduate candidates. Master’s students have advanced training and greater responsibility with their learning.

Ph.D. candidates make about 23% above their master’s student candidates. Ph.D. candidates have advanced training, expertise and will represent them for senior levels or academic learning programs.

In general, each education opportunity will increase a person’s employment average salary in Pakistan significantly. This emphasizes the value of investing in the learning opportunities, and qualifications.

Effect of Work Experience on Salary

Experience has one of the largest impacts on average salary in Pakistan. As you develop skills and expertise, your overall value increases and translates into increased value to employers, which would generally mean more pay for you.

Typically, the salaries of entry-level employees with less than 2 years or experience will hover around the national average. Once you build between 2 to 5 years, your average salary would grow closer to 32% because of your increased competence and responsibility.

Individuals with 5 to 10 years of experience again typically, see about a 36% anual salary increase comparatively to the entry level professionals in the initial segment. This period generally includes a transition into mid-level or specialized roles with better average salaries.

After about 10 years of value-building professional experience, salary growth is generally slower. With 10 to 15 years of worked experience salary growth will only grow about 21% from Segment 2. Employees with 15-20 years will further slow defensive growth rate per annum: 14% effectively.

In summary, gaining work experience steadily increases the average salary in Pakistan, rewarding professionals who build skills and expertise over time.

Salary Variations by City/Region

The average salary in Pakistan varies across geographic areas, due to differences in levels of economic growth and the cost of living, between city and rural environments.

Karachi offers the largest salaries, around PKR 89,000 per month, because it is the financial and commercial capital with a large number of industries, corporate offices, and central business districts, contributing to these higher wages.

Lahore, the second largest city, offers an average salary around PKR 87,000 reflecting its developing industrial and technology sectors.

Islamabad is also at PKR 77,000 on average, however salaries here reflect the nature of the economy which is predominantly government focused with service industries also taking up a decent portion of salaries.

Faisalabad, with an industrial economy behind it, primarily textiles, has average salaries at around PKR 86,000, with many industries in health care, and food processing, salaries range from PKR 62, 000 to PKR 92,000.

The province of Khyber-Pakhtunkhwa with Peshawar showing average salaries between PKR 70,000 and 75,000, typically the lowest from our analysis, citing major sectors with very few major companies, and no other higher paying jobs in the service industries or high -tech would arguably be the factor in the seemingly lower wages.

Overall wages in Pakistan are defined by major city salaries to adjust for higher costs of living, with rural and smaller areas reflecting pay levels that generally offer less.

Gender Pay Gap in Pakistan

In Pakistan, meanwhile, like most countries, the average salaries show a clear distinction on the basis of gender because of the wage gap between what men and women earn. On average men are earning about PKR 84,000 per month and women about PKR 81,000, creating a 3.3% pay gap.

Gender pay gap may seem small at first, but this illustrates much deeper structural issues. In rural areas, the gap widens and becomes significantly larger due to lack of jobs for women, cultural restrictions, and lack of access to quality education.

The gap in urban areas is narrow, but still exists in every sector. The continual stagnation of this wage gap creates a major barrier to average salary in Pakistan as more women go into work as females are gaining a larger presence across the sectors.

There are many different initiatives to close this gap, including social initiatives to access equitable education, skill building programs and employment policies that encourage fair pay. It’s important to not only see this as a gender objective but also an objective that is required for a more inclusive and productive economy.

Cost of Living & Employer Obligations

When researching what the average salary is in Pakistan, it is crucial to consider the cost of living here and what employers legally must provide in addition to base pay for salary. These figures will tell us if an average salary provides an acceptable living standard.

Living Costs

Cost of living in Pakistan can vary by city, family size, and lifestyle; for example:

• A family of 4 spends around PKR 94,000 a month on groceries, transport, clothes and utilities – but that does not include rent.

• A single person may need around PKR 29,000 per month to cover the same basics as before – without paying rent, however.

• Rent can have a significant impact, a one bedroom apartment in a city center averages around PKR 32,000 in rent, and if you live suburban or out of the city you may be able to get the same place for around PKR 19,000.

Therefore if someone was to earn the average pay in Pakistan, you can see how earning an income and the cost of living – particularly on a salary alone in an urban area – may make it difficult to survive without the help from other monetary perks which employers may provide.

Employer Responsibilities

In order to prevent the mistreatment of employees, it is important that employers remain accountable for a variety of obligations in Pakistan. They are a systematic part of the overall benefits structure or compensation packages for employees:

• Pension Contributions: Employers, along with the employee contribute a total of only 6% of the employee’s salary into a pension funds, the employer contributes 5% and the employee contributes 1% which indicates some form of future financial security.

• Profit Sharing: Employees who have worked at least 90 days are entitled to profit-sharing bonuses providing extra performance incentives to an average salary structure in Pakistan.

• Employment Contracts: Employers with 20 or more employees are required to have formal contracts which about some worker rights and benefits such as health, leave, job security and some forms of legal protection.

These universal employer obligations and rights.
Employer obligations create clear consequences regarding the real value of a job in Pakistan and how they compare to an average salary. Employers should see the importance of explaining these components when they negotiate clear compensation for employees.

Pakistan’s Salary Competitiveness in Outsourcing

One of the main reasons Pakistan is an increasingly appealing outsourcing destination is due to their relatively low average salary compared to most developed nations. This means that if you are an international business and you consider offshore operations, the wage disparity provides a competitive advantage when locating the work.

• In countries like the US, Canada and the UK, the average salary exceeds USD 7,900 annually, and when you factor in higher labor costs, there is significant pressure on your business.

• In Pakistan, the average salary is highly feasible. This means foreign-based companies can have access to services and skilled workers at a fraction of the costs charged in its home countries.

• When compared to regional competitors like India and the Philippines, Pakistan is in a solid position. There are competitive salaries while offering benefits such as a growing digital economy, a significant youth population, and increasing English and technology skills.

Furthermore, Pakistan has an entrenched and growing pool of educated workers, particularly in high-demand skill sets such as information technology (IT), customer support, design, digital marketing, and software development. With continuing improvements in the internet infrastructure, internet access, and technology literacy, Pakistan is working towards becoming an international destination for remote work and outsourcing.

This mix of comparative low average salary in Pakistan and an advancing workforce ability, has created an effective and scalable approach to offshoring, where the costs of running your operation are lowered via outsourcing to Pakistan as a BPO, or as developers, or as creatives, with quality of service.

Future Salary Trends and Predictions

In the future, we can expect to see a consistent rise in the average salary in Pakistan, corresponding with changes in the economy and workforce. Watch closely for several micro and macro-level factors, consumer price index (inflation), supply and demand (market forces), and industry shifts that will all to a greater or lesser degree affect salary progression in the near future.

• Experts have varying opinions on US salary growth rates. Salary growth forecasts indicate between 2% – 5% growth, with higher growth rate forecasts primarily targeting urban areas where there is sufficient interaction and economic activity.

• Fast-growth, high paid sectors that will offer emerging above average salaries are information technology (IT), renewable energy, digital marketing, healthcare and e-commerce as well as technology/engineering.

• Automation, artificial intelligence (AI), and digital platforms are expected to disrupt a wide range of job roles and career paths into the future. Consequently, workers are required to reskill and upskill to maintain their relevance in the job market. Future pay structures must adapt accordingly to align with the changing priorities of employers and businesses.

Such developments mean future professionals must remain adaptable and aware of how industries are changing so they can craft the best career paths and negotiations. Likewise, businesses that wish to retain talent must adapt their policies for pay and incentive systems to remain competitive to prospective talent in terms of salary and emerging average salaries in Pakistan.

Overall, while challenges remain, the outlook is positive—signaling better financial prospects for workers and a more dynamic job market across the country.

Conclusion

It’s important for job seekers and employers to understand average salary in Pakistan in order to enable informed decision-making. Average salaries in Pakistan can be impacted by a variety of important factors such as industry, education, work experience, and location. As these factors evolve, what is clear is that we are now entering a more dynamic, and subsequently more optimistic, jobs market.

For employees, staying aware of average salary trends in Pakistan is useful in regards to their career trajectories, and salary expectations, and to negotiate better salaries. In contrast, businesses, particularly those seeking to outsource, can use salaries as data to build an acceptable, and competitive remuneration package to attract local talent.

As the economy changes and evolves salaries are changing.  Staying up to date with changing salary patterns in Pakistan maintains alignment on acceptable letting both job seekers and employers understand market expectations. So, as the pace of change accelerates in today’s job market, understanding average salary in Pakistan is definitely an intelligent choice anyone who is part of the workforce.

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