What it costs to hire a developer in Lahore: a 2026 breakdown
Salary is only the start. Here is everything that sits on top of a Lahore developer's pay, with three worked examples and the costs most comparisons leave out.
Published 5 November 2026
The short answer
A developer in Lahore costs their gross salary plus roughly 3% in statutory employer costs, plus a gratuity provision of 8.33% if you provide it, plus your employer-of-record or staffing fee. Income tax is withheld from the developer's salary, so it is not an extra cost to you. The examples below use round salaries to show how the numbers work; actual pay depends on stack, seniority and the market at the time you hire.
Three worked examples, per month
| Line | Junior (PKR 150,000) | Mid-level (PKR 300,000) | Senior (PKR 500,000) |
|---|---|---|---|
| Gross salary | 150,000 | 300,000 | 500,000 |
| Employer EOBI | 2,000 | 2,000 | 2,000 |
| Employer PESSI (where covered) | 2,400 | 2,400 | 2,400 |
| Gratuity provision (8.33%) | 12,495 | 24,990 | 41,650 |
| Total cost of employment | 166,895 | 329,390 | 546,050 |
| Income tax withheld from the developer | 6,000 | 34,667 | 92,000 |
| Developer take-home | 143,600 | 264,933 | 407,600 |
All figures in PKR per month, using Punjab rates and tax year 2027 salary slabs. EOBI and PESSI are calculated on the PKR 40,000 minimum wage, not on salary, which is why they stay flat as pay rises.
What else to budget
Employer-of-record or staffing fee: TechKoders starts from USD 249 per employee per month, falling from the second employee. Workspace: a managed seat in our Johar Town facility, or a company laptop for home working. Recruitment: two to four weeks to shortlist and hire if you do not already have a candidate. Annual increments: most Lahore developers expect a review every year.
How to keep the cost honest
Ask any provider to show the gross salary, every statutory line and its own fee separately, with no currency margin. Compare total monthly cost, not just the headline fee, and check whether gratuity is provisioned or left as a surprise at exit. If you already pay a developer as a contractor, read contractor misclassification in Pakistan before you scale the team.
Questions we hear
How much does it cost to employ a developer in Lahore?
Gross salary plus about PKR 4,400 a month in EOBI and PESSI, an 8.33% gratuity provision if provided, and your provider's fee. A PKR 300,000 salary comes to about PKR 329,390 a month before the fee.
Is income tax an extra cost for the employer?
No. It is withheld from the developer's gross salary and deposited with FBR.
Why do EOBI and PESSI stay the same at higher salaries?
Both are calculated on the provincial minimum wage, PKR 40,000 in Punjab, not on actual salary.
How long does it take to hire a developer in Lahore?
Usually two to four weeks to shortlist and hire, then about a week to complete the employment contract and registrations.
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