The threshold for salary payment through cash in Pakistan has been increased to Rs 32,000 per month. This is in line with the increase in the minimum wage.
Previously, salary payments exceeding Rs 25,000 per month were not allowed as an admissible deduction while computing income from business if they were paid otherwise than through the banking channel.
The increase in the threshold is aimed at promoting the use of formal banking channels for salary payments and discouraging the practice of paying salaries in cash.
