Commission is how many salons reward the people who actually do the work: the stylist who builds a loyal following, the beautician who is booked out every Saturday, the receptionist who sells a treatment package. Done well, it keeps good staff motivated and makes your payroll grow only when your sales grow.
This year there is an extra reason to look at how you pay. Sindh and the Islamabad Capital Territory have both notified higher minimum wages that apply from 1 July 2026, and Sindh's Labour Department has made clear that the minimum wage is a guaranteed floor. If any of your staff are paid mostly or only through commission, now is the right moment to check your numbers. This guide explains the new rates, the common ways to structure commission, and a simple process you can set up before the busy winter months.
The minimum wage in 2026: where things stand
Pakistan does not have one national minimum wage. Each province notifies its own rate, and the federal government notifies the rate for Islamabad. Here is the position for unskilled adult workers, as reported in official notifications and news coverage:
- Sindh: Rs 43,000 a month from 1 July 2026. Dawn reported on 6 August 2026 that the Sindh cabinet approved a 7.5 per cent increase, raising the monthly wage for unskilled workers from Rs 40,000 to Rs 43,000, applying to workers in notified industrial and commercial establishments. Rates for semi skilled, skilled and highly skilled workers were also raised. The Employers' Federation of Pakistan published the notification on 18 August 2026.
- Islamabad Capital Territory: Rs 40,700 a month from 1 July 2026. The ICT notification dated 19 August 2026 fixes Rs 1,565 a day for 8 working hours and Rs 40,700 a month for 48 working hours a week with one day off, for unskilled workers in industrial and commercial establishments. A separate ICT notification sets Rs 18,700 a month for part time workers working four hours a day.
- Punjab: Rs 40,000 a month, still the latest notified rate. Dawn reported on 10 September 2025 that Punjab notified an increase from Rs 37,000 to Rs 40,000 a month for 26 working days, which works out to Rs 1,538.46 for an eight hour day. We could not find a new Punjab notification for 2026 to 2027 at the time of writing. If one is issued, check whether it applies from an earlier date, so you can plan for any arrears.
Rates for Khyber Pakhtunkhwa and Balochistan should be confirmed with the provincial labour department before you set pay.
Why this matters for commission based pay
The key question for a salon is simple: can commission count towards the minimum wage?
In Sindh, the answer leans firmly towards no. In June 2026, a group of international brand and worker organisations wrote to the Sindh government asking for a clear rule that bonuses and allowances cannot be counted towards the minimum wage. According to their public statement, the Labour and Human Resource Department replied that "the minimum wage notified under Section 6 of the Act constitutes the guaranteed wage floor, and any arrangement which effectively results in payment below such notified rates would be inconsistent with Section 9 of the Act and liable to legal consequences." The same statement notes that the July 2025 Sindh notification for unskilled workers already included an anti adjustment clause.
For a salon owner, the practical reading is this: treat the minimum wage as a base that every eligible staff member receives, and pay commission on top of it, not instead of it. A slow month for a new stylist should not push their pay below the legal floor.
This is general information, not legal advice. Labour law details, such as which workers and establishments a notification covers, can be specific, so confirm your situation with your provincial labour department or an adviser.
Four common ways to structure salon commission
There is no single right model. What matters is that the rules are written down, easy for staff to check, and paid on top of a lawful base.
1. Base salary plus a flat service commission
Each staff member receives a fixed monthly salary at or above the minimum wage, plus a set percentage of the services they personally perform. This is the easiest model to explain and to calculate.
2. Base salary plus tiered commission
The percentage rises once a staff member passes a monthly sales target. For example, one rate up to a target and a higher rate above it. Tiers reward your strongest performers without overpaying on ordinary months.
3. Different rates for services and retail
Many salons pay one rate on services and a separate rate on products sold, such as shampoos, serums or home care kits. A separate retail rate encourages honest recommendations without turning every visit into a sales pitch.
4. Team or shared commission
Some services involve more than one person, such as a bridal package where a makeup artist, a hairstylist and an assistant all work on the same client. Decide in advance how the commission is split, so nobody feels shortchanged after a long wedding day.
A worked example
The figures below are example numbers to show the calculation, not a recommended rate.
Imagine a stylist in Karachi on a base salary of Rs 43,000, with a commission of 10 per cent on services above Rs 100,000 of monthly service sales.
- In a month with Rs 180,000 of services, commission is 10 per cent of Rs 80,000, which is Rs 8,000. Total pay is Rs 51,000.
- In a quiet month with Rs 90,000 of services, no commission is earned, and the stylist still receives the Rs 43,000 base.
The base protects the stylist, and the commission rewards the busy months. Before you pick your own percentages, check them against your service prices, product costs and rent, so the plan works for the business too.
Questions to settle before you start
Write your answers down and share them with your team:
- Gross or net? Is commission calculated on the full bill, or after discounts, vouchers and any tax shown on the receipt? Most disputes start here.
- Who gets credit? When a client is booked with one stylist but served by another, whose sale is it?
- What about redos and refunds? If a colour has to be corrected for free, does the original commission stay?
- Discount weeks. If you run a November or wedding season offer, is commission paid on the discounted price?
- Payment day and method. Sindh's notification requires wages to be paid through banking channels, such as a bank transfer or crossed cheque, according to coverage of the notification. Keeping a record of every payment helps everywhere.
Track commission from the bill, not from memory
The fairest commission plan still fails if the numbers are worked out at the end of the month from scraps of paper. Staff lose trust quickly when they cannot see how their figure was reached. The simplest fix is to tag every service and product to the staff member who delivered it at the moment the bill is made, so the commission report builds itself through the month.
How SalonFlow helps with staff commission
SalonFlow is salon management software built for beauty businesses in Pakistan, and staff commissions are included from the very first plan. Starter Flow (PKR 8,000 a month) brings together daily billing and POS, appointment booking, staff commissions, loyalty points, customer profiling and reporting dashboards, so each bill can be linked to the person who did the work and your reports show how each team member is performing.
As your salon grows, Pro Flow (PKR 15,000 a month) adds inventory management and SMS and WhatsApp messages, and Elite Flow (PKR 28,000 a month) adds stock control plus payment vouchers and accounting. Every plan comes with free support and owner and staff mobile app options. You can see the full plan details on the SalonFlow pricing section or message the team on WhatsApp at +92 309 230 8279 to book a demo using your own commission rules.
Frequently asked questions
What is the minimum wage for salon staff in Pakistan in 2026?
It depends on the province. For unskilled workers, Sindh's rate is Rs 43,000 a month from 1 July 2026, Islamabad's is Rs 40,700 a month from 1 July 2026, and Punjab's latest notified rate is Rs 40,000 a month for 26 working days, in force since 1 July 2025. Higher categories, such as skilled workers, can have higher rates, so check the notification for your province.
Can I pay my salon staff commission only, with no salary?
Be very careful. Sindh's Labour Department has said the notified minimum wage is a guaranteed wage floor and that any arrangement resulting in payment below it would be inconsistent with the law. The safer approach is a base salary at or above the minimum wage, with commission paid on top. Confirm the rules for your province with the labour department or an adviser.
What is a good commission structure for a salon?
There is no single standard. Common models are a base salary plus a flat percentage of services, a tiered rate that rises after a monthly target, separate rates for services and retail products, and a shared split for team services like bridal packages. Choose a model you can explain in one sentence and test it against your margins.
Should salon commission be calculated before or after discounts?
That is your decision, but write it down. Calculating on the amount the client actually paid, after discounts and vouchers, protects your margins during offer periods. Whatever you choose, apply it the same way for everyone.
Does Punjab have a new minimum wage for 2026 to 2027?
At the time of writing, we could not find a new Punjab notification. The latest notified rate is Rs 40,000 a month from 1 July 2025. Keep an eye on the Punjab Labour and Human Resource Department for updates.
Which SalonFlow plan includes staff commissions?
Staff commissions are included in every SalonFlow plan, starting with Starter Flow at PKR 8,000 a month, along with billing, appointment booking, loyalty points, customer profiling and reporting dashboards.
Sources
- Dawn, Minimum wage raised to Rs43,000 per month, 6 August 2026: https://www.dawn.com/news/2020852
- Employers' Federation of Pakistan, Sindh Minimum Wages Notification 2026, 18 August 2026: https://efp.org.pk/sindh-minimum-wages-notification-2026/
- Ethical Trading Initiative and partner organisations, Statement on minimum wage compliance in Sindh (quotes the Sindh Labour and Human Resource Department): https://www.ethicaltrade.org/sites/default/files/shared_resources/Sindh%20minimum%20wage%20statement.pdf
- Employers' Federation of Pakistan, ICT Minimum Wages Notifications 2026, 20 August 2026: https://efp.org.pk/ict-minimum-wages-notifications-2026/
- Galaxy World, transcription of ICT notifications No. ADLW 8(20)-ICT/2024-934 dated 19 August 2026: https://www.glxspace.com/notification-of-daily-wage-rates-and-minimum-wage-rates-2026-islamabad/
- Dawn, Notification for minimum wage raise issued (Punjab), 10 September 2025: https://www.dawn.com/news/1940817
- Radio Pakistan, Punjab Govt fixes minimum wage for workers at Rs40,000 per month, 10 September 2025: https://www.radio.gov.pk/10-09-2025/punjab-govt-fixes-minimum-wage-for-workers-at-rs40000-per-month
- SalonFlow, plans and features: https://salonflowpos.com/, checked 30 October 2026