Let’s dive into the average salaries and outsourcing trends in Pakistan, providing insights into the average salaries in Pakistan in 2024 is 82,100 PKR per month which is 293.87 USD in February 2024.
The average income in Pakistan is notably lower compared to that of the United States (USD 7,900), yet it stands in line with figures from India (USD 430), Ukraine (USD 858), and the Philippines (USD 884). This aspect highlights Pakistan as an attainable option among these renowned outsourcing hubs.
Let’s take a look at how much people in Pakistan are earning on average in 2024, and we’ll also see how outsourcing is changing in that area, let’s find out the top reasons for your business to outsource to Pakistan.
In this article let’s dive into detail about all the salary ranges and minimum wages of Pakistani employees and let’s find out if the country is capable of outsourcing or not.
What is The Average Salary in Pakistan?
The average salary in Pakistan in 2024 is 82,100 PKR per month which is 293.87 USD. An average Pakistani employee earns around 25.1 lakh PKR per year which is 8,984.26 USD. The average hourly pay in Pakistan is 470 PKR which is 1.68 USD in February 2024.
The average salary in Pakistan may range from anywhere between 20,700 PKR, to 365,000 PKR, noting that the actual maximum may be even higher.
Minimum Wage
The Minimum Wage in Pakistan is 1,423 PKR per day which is 5.09 USD in August 2024 and the minimum salary in Pakistan is around 37,000 PKR per month which is 132.44 USD, which accumulates to the Minimum yearly wage in Pakistan is around 1,924,000 PKR which is around 6,886.74 USD.
In Punjab province, the minimum wage is 37,000 PKR per month,
Sindh province has a minimum wage guideline of 37,000 PKR per month,
Balochistan also has a minimum wage guideline of 37,000 PKR per month.
Note: Keep in mind that these minimum wages keep on varying depending on different factors like level of education, job role, job location, experience level, etc.
Median Salary
The median salary in Pakistan is 922,300 PKR which is 3301.27 USD in 2024.
This means half of the population of Pakistan earns more than 922,300 PKR and half of the population earns less than that.
Factors Affecting the Average Salary in Pakistan
Many factors affect the average salary in Pakistan, some of the factors you need to consider are:
1. Average Salary Based on Industry
The average salary in a country varies according to the type of industry, Pakistan is recognized for its exports of cotton, textiles, and agriculture, which contribute significantly to the country’s GDP. As a result, the manufacturing sector typically employs a substantial portion of the Pakistani workforce.
| Industry | Yearly Average Salary |
|---|---|
| Account Analyst | 1,878,535 PKR |
| Dentist | 3,910,769 PKR |
| Secondary School Teacher | 1,699,710 PKR |
| Pilot | 2,260,459 PKR |
| Personal Trainer | 1,230,778 PKR |
| Trained Nurse | 1,956,751 PKR |
| Police Officer | 5,523,71 PKR |
| Pharmacist | 2,757,241 PKR |
Source: salaryexpert.com
2. Average Salary based on Level of Education
The Average Salary in Pakistan varies depending on the employee’s level of education, The person with a higher educational degree will get paid higher than a person with a lower educational degree.
- Certificate or Diploma: A person with a certificate or diploma will get paid 17% more than a person with just a High School Fresher.
- Bachelor’s Degree: A person with a Bachelor’s degree in any department will get paid 24% more than a person with a certificate or diploma.
- Master’s Degree: A Master’s Degree holder with a degree in any field will get paid 29% more than a Bachelor’s Degree holder.
- PhD: An advanced degree holder such as a PhD will get paid 23% more than a Master’s Degree holder.
Source: salaryexplorer.com
3. Average Salary Based on Experience
According to a survey by salaryexplorer.com, the average salary will also change depending on the years of experience an employee has.
- An employee with experience between 2-5 years will earn 32% more than freshers.
- An employee with experience between 5-10 years will earn 36% more than freshers.
- An employee with experience between 10-15 and 15-20 years will earn 21% and 14% more than the employees with experience less than 10 years.
And lastly, an employee with experience above 20 years will earn 9% more than an employee with experience below 20 years.
Source: salaryexplorer.com
4. Average Salary Based on City
The average salary keeps varying according to different cities, each city has a different Average Salary rate.
| City | Average Salary (Yearly) |
|---|---|
| Lahore | 1,623,635 PKR |
| Karachi | 1,714,296 PKR |
| Islamabad | 1,837,924 PKR |
| Peshawar | 1,531,727 PKR |
| Rawalpindi | 1,611,275 PKR |
| Quetta | 1,549,462 PKR |
| Faisalabad | 1,526,430 PKR |
Source: salaryexpert.com
Annual Average Salary Increment
In Pakistan, employees can expect a salary increase of around 8% approximately every 19 months. This rate surpasses the global average, which typically sees a lower increment of about 3% every 16 months. The average rate of annual salary increment stands at 5%.
A. Increment by Industry
The salary increase rate varies depending on the type of Industry in Pakistan.
In Pakistan, IT and healthcare professionals typically receive the most substantial salary increases.
| Industry | Annual Average Increment |
|---|---|
| Information Technology | 6% |
| Healthcare | 8% |
| Banking | 2% |
| Education | 5% |
Source: Salaryexplorer.com
B. Increment by Experience
The Annual Average Salary Increment rate also varies depending on the years of experience an employee has.
| Experience | Annual Average Increment |
|---|---|
| Junior | 3-5% |
| Mid-level | 6-9% |
| Senior-level | 10-15% |
| Top Management | 15-20% |
Source: Salaryexplorer.com
Wage Difference
The wage difference is quite noticeable in Pakistan because men earn 83,731 PKR and women earn 81,024 PKR per month.
That’s a 3.3% gap, showing that workplace inequality is still a reality. The gap is smaller in cities but grows in rural areas, where women often face traditional barriers. Bridging this divide means focusing on better education, training, and fair policies so everyone gets a fair chance.
Wage guidelines in Pakistan
For international employers, it can be beneficial to calculate the total cost of an employee by including taxes, social security contributions, and any other mandated compensations. This approach aids in ensuring compliance with payment regulations and other labor laws.
Similarly, for employees, understanding their disposable income involves considering income tax and other obligatory deductions from their base salary.
Every Pakistani company with twenty or more employees is required to arrange formal employment contracts with their employees, specifying details such as salary structure, additional benefits, daily working hours, and other relevant terms.
Employers are required to contribute 5% of the employee’s base salary to the pension fund, while the employee contributes 1%. However, these deductions do not apply to employees earning more than 400 PKR a day or 10,000 PKR a month.
Furthermore, according to the law, profitable companies with more than 20 employees must share their profit margins with their employees. They are mandated to provide a profit bonus to any employee who has rendered at least 90 days of service in a year.
Cost of Living in Pakistan
The cost of living in Pakistan depends on the city one lives in and on one’s lifestyle. It is less compared to many Western states. Basic expenses like food, transportation, and accommodation are affordable as compared to the cost of living in developed countries.
For a family of four, the estimated monthly expenses amount to 94,038.8 PKR without considering rent. For a single person, the estimated monthly costs are 29,276.6 PKR excluding rent.
On average, the cost of living in Pakistan is 9.4% lower than in India. Similarly, rental costs in Pakistan are, on average, 41.0% lower compared to India.
1. Basic Transportation Costs
According to numbeo.com a one-way ticket for transportation in Pakistan costs 50 PKR (0.18 USD) PKR per person,
- A taxi ride per kilometer costs around 150 PKR (0.54 USD) per person.
- And 1 litre of gasoline costs around 273.68 PKR (0.98 USD).
2. Housing Costs
- A single-bedroom apartment in the city Centre will cost you around 31,881.58 PKR which is 114.12 USD and a single-bedroom apartment outside of the city Centre will cost you around 19,192.66 PKR which is 68.70 USD.
- A 3-bedroom apartment in the city Centre will cost you around 75,848.16 PKR which is 271.49 USD and a 3-bedroom apartment outside of the city Centre will cost you around 45,357.63 PKR which is 162.35 USD.
3. Healthcare Costs
Pakistan spends approximately 10,616.34 PKR which is 38 USD per capita for healthcare, a figure considerably lower than that of many other developing nations.
4. Income Tax
If your total annual income surpasses PKR 60,000, your salary becomes subject to taxation as per the government of Pakistan’s budget for the fiscal year 2023-2024.
The minimum tax in Pakistan is 1.25%. The tax rate in Pakistan fluctuates between 5% and 35%, depending on the income bracket of the individual or company. Taxable income, defined as the income earned after deducting expenses and exemptions is used as the foundation for income tax calculation.
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Sign Up for FreeBook DemoIs Pakistan a Good Destination for Outsourcing
Pros of Outsourcing to Pakistan
1. Financial Benefits
One of the biggest reasons companies consider Pakistan is its cost advantage. The country has a large supply of qualified personnel, and the cost of labor is considerably lower than in developed countries of the West. For companies that seek to reduce their expenses while maintaining the quality of employees, this financial bonus is quite tempting. Additionally, Pakistan’s growing tech ecosystem and skilled workforce make it an attractive option for outsourcing and offshoring.
2. Increased Efficiency
Pakistani professionals, particularly in IT, software development, and customer support, are known for their technical expertise and problem-solving capabilities. As the emphasis on quality education in the technical and business disciplines increases, the workforce can contribute to enhancing the general organizational performance by achieving the objectives in the shortest time and at a lower cost. With their growing adaptability and skill set, they are also well-positioned to drive innovation and keep pace with global industry trends, further strengthening the competitiveness of the organizations they work for.
3. Working Around the Clock
The time zone difference can really work to your advantage. Businesses in Europe and North America can benefit from round-the-clock productivity when partnering with teams in Pakistan. While your in-house staff sleeps, your outsourcing team can continue handling tasks, ensuring projects are completed faster. This means you’re not only meeting deadlines but potentially beating them, giving you a competitive edge. Plus, this continuous workflow can help reduce bottlenecks, keeping your operations smooth and your clients satisfied.
The Cons of Outsourcing to Pakistan
1. Inadequate Infrastructure and Service Delivery
Despite its progress, Pakistan’s infrastructure remains a problem even today. Some of the challenges include frequent power blackouts, poor internet connectivity, and restricted access to modern technology. When outsourcing critical operations, these problems can worsen unless businesses put reliable backup strategies in place. Without such precautions, companies could face disruptions that affect service delivery and productivity. Addressing these gaps is essential for smooth operations in the long term.
2. Threats to Privacy and Security
Outsourcing usually involves the sharing of important information belonging to the company. However, the issues of data privacy and security are not very far from reality in Pakistan. The laws regarding cybersecurity are still developing in the country and some companies may be reluctant to share their data with service providers in this country. As a result, businesses must weigh the potential risks and rewards when considering outsourcing to Pakistan, ensuring that strong data protection measures are in place to safeguard sensitive information.
Finally, if you are looking to outsource to a country with good infrastructure, security, and stability then you can consider other Asian countries.
If you are looking just for low financial benefits then, you might take Pakistan into consideration.
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What is Time Champ?
Time Champ is an employee monitoring and productivity tracking software that helps businesses to continuously track and monitor employee activities and keep track of employee productivity.
Time Champ tracks all the activities of employees during working hours and categorizes those activities for easy analysis.
Key Features of Time Champ
1. Employee Monitoring
Time Champ’s Employee Monitoring feature is widely known for both remote and hybrid monitoring. This employee monitoring feature works both in remote and hybrid working locations and provides accurate information.
This feature provides detailed information about your employee activities such as working time, break time, and idle time from the employee work shift.
2. Task Management
This Task Management feature allows Employees to view how much time they consumed to complete each task assigned to them and how many tasks they have completed in a day. You can also schedule tasks and get notified timely.
3. Project Management
The Project Management feature helps businesses assign projects to employees and view the progress through multiple time sheets generated based on employee performance. Through the Sprint Management feature, you can insert a project title and estimate the time required to complete the project and work accordingly. You can also view the number of days left to complete a specific project.
4. Employee Productivity
With the help of the Employee Productivity feature, you can track the productivity levels of your employees and take measures to efficiently increase employee productivity if needed. This feature displays all the apps and websites your employees have visited along with and for how long they stayed on each website.
You will get the analysis report categorized as productive time, non-productive time, and neutral time and for how long the employee was productive.
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Sign Up for FreeBook DemoConclusion
In conclusion, Pakistan presents a unique blend of affordability and capability as an outsourcing destination. With average salaries significantly lower than those in Western nations, a growing pool of skilled professionals, and a cost-effective living standard, it’s an attractive option for businesses seeking financial efficiency. The country’s strengths in IT, software development, and customer support, coupled with its time zone advantage, make it a competitive outsourcing hub.
However, challenges like infrastructure limitations and evolving cybersecurity laws require careful consideration. By understanding the economic landscape and leveraging Pakistan’s advantages while addressing its limitations, businesses can unlock substantial benefits.
Frequently Asked Questions
Yes, the Pakistani government offers incentives like tax benefits, export rebates, and initiatives under the Pakistan Software Export Board (PSEB) to encourage outsourcing. These initiatives aim to make Pakistan a competitive outsourcing destination globally. Programs like DigiSkills also provide training to enhance the workforce’s technical capabilities.
PayPal is not currently available in Pakistan, but alternatives like TransferWise, Payoneer, and direct bank transfers are commonly used. Some companies also accept payments via cryptocurrencies, adding flexibility for international clients. This ensures secure and timely transactions for all parties.
Pakistan has a growing pool of professionals skilled in AI, machine learning, and data science, supported by local universities and global certifications. Many professionals have experience with leading AI tools and platforms like TensorFlow and PyTorch. Continuous learning programs and boot camps further enhance their skill set.
Pakistani professionals are known for adaptability, problem-solving, and teamwork. They often excel in customer-facing roles due to strong interpersonal skills. Additionally, they are culturally adaptable, making them a good fit for global teams.
Yes, especially those trained in outsourcing firms or global companies, Pakistani professionals adhere to international work ethics and standards. Punctuality, accountability, and a focus on quality are often prioritized. Many also undergo specialized training to meet client expectations
