Here are Pakistan’s statutory updates for 2024.
Effective July 2024
Monthly Contribution towards Employees’ Old-Age Benefits and Minimum Wage Increases
In the Budget 2024–2025, the Pakistani government announced raising the minimum wage for unskilled workers from PKR 32,000 to PKR 37,000 per month in all provinces—Punjab, Sindh, Balochistan, Khyber Pakhtunkhwa, and the Islamabad Capital Territory region.
As a result, the updated minimum salary will be used to determine both the employer’s and the employee’s monthly payment to Employees’ Old-Age Benefits (EOB):
Employer’s contribution is equal to 5% of the minimum salary, or 37,000 * 5% = PKR. 1,850
Employee contribution portion is equal to 1% of minimum pay. 37,000 * 1% = 370 PKR
Source: FBR
Changes in Income Tax Rate
The Budget has proposed a revised tax rate table for salaried individuals as follows:
| Financial year 2024 | ||
|---|---|---|
| Annual taxable income (in PKR) | Tax Amount (in PKR) | Tax Rate on Excess Income |
| 0-600,000 | – | 0.00% |
| 600,001-1,200,000 | – | 5.00% |
| 1,200,001-2,200,000 | 30,000 | 15.00% |
| 2,200,001-3,200,000 | 180,000 | 25.00% |
| 3,200,001-4,100,000 | 430,000 | 30.00% |
| >4,100,000 | 700,000 | 35.00% |
Source: FBR
