Pakistan’s average monthly wages have increased sharply over the past four years, rising by about 62 percent from Rs24,028 in 2020–21 to Rs39,042 in 2024–25, according to the Labour Force Survey.
Workers in the formal sector saw higher earnings, with average monthly pay reaching Rs54,038. In comparison, people working in the informal sector earned an average of Rs30,834 per month. This shows a clear gap between formal and informal jobs, with formal employment offering better pay and more stability.
However, economists say these wage increases do not tell the full story. High inflation during the same period has reduced the real value of these earnings. Inflation peaked at around 29 percent in 2021–22, meaning the cost of basic items such as food, fuel, housing, and utilities rose much faster than incomes. As a result, many low- and middle-income households are still struggling to cover daily expenses despite earning more in nominal terms.
The survey also highlighted differences between provinces. Balochistan recorded the highest average wages, followed by other regions, reflecting variations in job types, skill levels, and economic activity across the country.
Experts stress that rising wages alone do not automatically improve living standards. To understand whether people are truly better off, income growth must be compared with inflation. Without strong control over prices and better job quality, higher salaries may not translate into real improvements in purchasing power or overall quality of life.
