Tax on Rs 40,000 a month — the Punjab minimum wage, at Rs 0 a year
This is the one salary page on the site where the tax answer and the wage-law answer meet: Rs 40,000 a month is exactly the minimum wage Punjab notified for industrial and commercial establishments, and it still sits Rs 10,000 a month below the point where income tax begins.
Salary
For estimation only. Verify with FBR or a tax professional.
Estimated annual tax
- Estimated annual tax
- Rs 0
- Estimated monthly tax
- Rs 0
- Monthly take-home pay
- Rs 40,000
- Annual take-home pay
- Rs 480,000
- Effective tax rate
- 0%
- Marginal tax rate
- 0%
Effective rate is total tax divided by gross annual income, not by taxable income.
Annual income comparison
Gross annual income is the full figure before tax; the tax and take-home bars are measured against the same scale.
Tax slab breakdown
| Taxable income | Fixed tax | Rate | Tax in this slab |
|---|---|---|---|
| Rs 0 – Rs 600,000 | Rs 0 | 0% | Rs 0 |
| Rs 600,000 – Rs 1,200,000 | Rs 0 | 1% | Rs 0 |
| Rs 1,200,000 – Rs 2,200,000 | Rs 6,000 | 11% | Rs 0 |
| Rs 2,200,000 – Rs 3,200,000 | Rs 116,000 | 20% | Rs 0 |
| Rs 3,200,000 – Rs 4,100,000 | Rs 316,000 | 25% | Rs 0 |
| Rs 4,100,000 – Rs 5,600,000 | Rs 541,000 | 29% | Rs 0 |
| Rs 5,600,000 – Rs 7,000,000 | Rs 976,000 | 32% | Rs 0 |
| Rs 7,000,000 – ∞ | Rs 1,424,000 | 35% | Rs 0 |
Take-home pay at this salary
| Salary | Per month | Per year |
|---|---|---|
| Gross salary | Rs 40,000 | Rs 480,000 |
| Income tax | Rs 0 | Rs 0 |
| Take-home after tax | Rs 40,000 | Rs 480,000 |
Effective tax rate: 0% · Marginal tax rate: 0%
Take-home is gross pay less the tax this schedule produces. It is not a payslip: provident fund, social security and any other deduction an employer makes come out separately, under their own rules.
How this salary is taxed
The Punjab notification fixes Rs 40,000 a month for 26 working days, which works out at Rs 1,538.46 a day for eight hours and Rs 192.31 an hour. It was signed by the Secretary of the Labour and Human Resource Department on 08.09.2025 and takes effect from 01.07.2025, superseding the notification of the same series dated 05.09.2024.
Read against the tax table, the two systems say different things about one payslip. Wage law sets a floor an employer may not go below; the income tax table sets a ceiling below which no tax arises. At Rs 40,000 they have not met — the taxable line is Rs 600,000 a year, which is Rs 50,000 a month — so a minimum-wage earner in Punjab pays Rs 0.
The notification carries detail most summaries drop, and it changes what forty thousand means on a real slip. Paragraph 2 permits deductions in lieu of facilities — food at Rs 100 a meal, transport at Rs 1,800 a month, accommodation at Rs 2,000 a month — and only against an agreement with the worker. Paragraph 3 forbids reducing a wage already above the notified floor, and paragraph 4 requires equal pay for a woman worker doing work of equal value.
Neither schedule reaches this wage with a charge. The bill is Rs 0 in 2026-27 and Rs 0 in 2025-26, because the zero-rate band runs to Rs 600,000 in both — a threshold the 2026-27 budget left alone while it rebuilt everything above Rs 2,200,000.
What this page states, and what it rests on
Notified minimum wage for adult and adolescent workers in all industrial and commercial establishments in Punjab: Rs 40,000 a month for 26 working days, Rs 1,538.46 a day, Rs 192.31 an hour, effective 01.07.2025.
Source: Punjab Gazette (Extraordinary) 09.09.2025, p. 1207 — Notification No. SO(L&P) MW/2024
The salaried table begins charging at Rs 600,000 of taxable income a year — Rs 50,000 a month — so this wage is Rs 120,000 a year short of the first rupee of tax.
No verified source was found for how many salaried taxpayers fall inside this band. The FBR documents read here give collection totals, not a per-band count of filers, so the figure is left out rather than guessed.
Nothing verified — not published in a checkable form — No source was found for this figure, so it is shown as a gap rather than used in the estimate.
What to check on your payslip
- Whether the establishment is inside the notification at all. It is issued under the Punjab Minimum Wages Act 2019 for industrial and commercial establishments; federal employees and the other provinces work from their own instruments.
- Whether deductions for food, transport or accommodation are being taken without the agreement paragraph 2 requires.
- Whether 26 working days is what the month actually contains. The notified monthly figure is built on that count, so a month of more days paid pro rata is a different calculation.
Frequently asked questions
Is Rs 40,000 a month the legal minimum wage in Pakistan?
It is the notified figure for industrial and commercial establishments in Punjab from 01.07.2025. Minimum wage is a provincial subject, so this is not a national floor and it does not reach every employer.
What income tax is due on Rs 40,000 a month?
None. Rs 480,000 a year is below the Rs 600,000 threshold, so the estimate shown here is Rs 0 and the effective rate is 0%.
Does the minimum wage figure include tax?
The notification fixes a wage, not a figure net of tax. Because the wage is under the taxable line no income tax comes out of it; the deductions it does allow are the in-kind ones listed in paragraph 2.
What changes if the pay goes to Rs 50,000 instead?
Nothing in tax. Rs 50,000 a month is Rs 600,000 a year, which is the last rupee the zero-rate band still covers, so the bill stays at Rs 0 and the whole increase arrives.
Tax year
More calculators
Sources for the 2026-27 schedule
- Finance Bill 2026 — Division I salaried table
- Salient Features of Budget 2026-27
- Finance Act 2026 (gazette copy)
How far this check goes. Checked on 2026-10-10 against the Finance Bill 2026 and the Salient Features, both live on that date. The Finance Act 2026 is the enacted counterpart; its gazette PDF is a scanned image, so the band figures were confirmed from the text-bearing FBR documents above rather than extracted from the scan.
Last verified: 10 October 2026 · Source: FBR