New PBS Labor Force Survey 2025: Despite nominal wages increasing , real wages fell by 10%.

PBS released the latest Labor Force Survey 2025, reporting that the average monthly wage has increased from Rs 24,000 in 2021 to Rs 39,000 in 2025.

On paper, that is a 62.5% increase — and it sounds like strong wage growth.

But is life actually easier for the average Pakistani worker?

To answer that, we must look at real wages, not nominal rupees.

According to PBS’s own CPI (base 2015–16):
Prices increased from 154.9 in 2021 to 280 in 2025,
meaning the cost of living rose by about 81% over the same period.

When we adjust wages for this inflation, the picture changes dramatically:

➡️ The real wage has actually fallen by around 10% since 2021.

➡️ This means today’s Rs 39,000 buys less than what Rs 24,000 bought in 2021.

This explains why so many households report feeling financially squeezed despite “higher salaries”.

Nominal income is up — but purchasing power is down.

A simple comparison makes it clear:

+62.5% increase in salary (nominal)
–10% decline in real, inflation-adjusted income

In other words, salaries have gone up, but life has become harder.

As policymakers interpret the new LFS results, it is essential to distinguish between money income and real income. What matters to households is not the number printed on the payslip — but what that income can actually buy.

A bit unfortunate that PBS in its analysis has till now not given the real wage decrease value. It would have been more professional for them to do so.