Salary Calculator

A Salary Calculator is a tool that converts your gross salary into the actual amount you receive in your bank account each month, commonly called net salary or take-home pay. Gross salary is the total amount your employer agrees to pay you before any deductions, including your basic salary, house rent allowance, medical allowance, and other benefits. Net salary is what remains after mandatory deductions like income tax, EOBI, and provident fund are removed. The difference between these two figures can be significant, and many employees in Pakistan only realise how much is deducted when they see their first payslip.

Understanding the gap between gross and net salary matters because it affects every financial decision you make. When you negotiate a salary, plan a budget, apply for a loan, or set savings goals, you should always work with your net income, not the gross figure in your offer letter. Employers often quote gross salary because it sounds more impressive, but what actually lands in your account determines your real purchasing power. This calculator helps you see that number instantly, so you can plan with confidence.

The calculator first converts your salary to an annual figure if you entered a monthly amount. It then applies the current FBR progressive income tax slabs for the 2026-27 fiscal year. Each portion of your income falls into a specific slab with its own tax rate, and the calculator sums the tax across all slabs to find your total annual income tax liability. This annual tax is divided by 12 to estimate the monthly deduction your employer withholds.

In addition to income tax, several other deductions can appear on a Pakistani payslip. EOBI (Employees Old-Age Benefits Institution) contributions are mandatory for employees in eligible organisations. The employee contributes 1% of their minimum wage, which is typically around Rs. 370 per month, while the employer contributes 5%. Some employers in Sindh may also deduct SESSI or PESSI for social security.

Provident fund is another common deduction, particularly in government and large private organisations. It is usually 8.33% of your basic salary, though some employers use 10%. This is not a tax — it is a forced savings scheme that you receive back when you retire or leave the organisation. The calculator focuses on income tax because the other deductions vary widely by employer and location, but you should subtract them manually for the most accurate net salary estimate.

A typical Pakistani payslip contains several line items that can be confusing if you are seeing them for the first time. The top section usually shows your gross salary broken down into basic salary, house rent allowance (HRA), medical allowance, conveyance allowance, and any other benefits. These added together form your gross pay before deductions.

The deductions section is where your take-home pay shrinks. The first and usually largest deduction is income tax, calculated by your employer using the FBR slabs and shown as monthly tax or withholding tax. Below that you may see EOBI contribution, typically Rs. 370 per month for employees. If your organisation runs a provident fund, you will see PF contribution at 8.33% or 10% of your basic salary. Some payslips also list professional tax, insurance premiums, or advance salary recoveries.

At the bottom of the payslip, you will find your net salary, which is gross salary minus all deductions. Some employers also include year-to-date figures showing your total earnings and deductions since the start of the tax year. Always verify that the income tax deduction matches what our calculator shows. If there is a large discrepancy, speak to your HR or payroll department, as errors in tax deduction are common and can usually be corrected.