How to read your Pakistani payslip
A payslip starts with gross salary: basic pay plus house rent, utilities, medical and conveyance allowances. Income tax is calculated on the taxable part of that package, then withheld monthly by the employer. After tax come other deductions such as provident fund, EOBI contributions, staff loans or advances, leaving the net salary that reaches your bank account.
Because the slab system is progressive, a raise does not shrink your take-home pay; only the extra amount is taxed at the higher rate. A bonus is usually the part that surprises people: when a lump sum pushes annual income into a higher slab, the employer adjusts tax in the month it is paid. This calculator spreads the bonus over twelve months so you can compare average monthly pay between offers.
How to use it
- Enter your gross monthly salary as written in your offer letter.
- Add any yearly bonus you expect, such as Eid or performance bonus.
- Enter pre-tax deductions (for example an approved provident fund contribution) and post-tax deductions separately.
- Compare the net monthly figure across job offers, remembering that medical insurance and other benefits are not cash.
Negotiating a salary in Pakistan
Ask for the figure on a gross basis and ask what part is a taxable allowance versus reimbursed expenses. A package of Rs 250,000 with a fuel card and medical cover can be worth more than a Rs 270,000 package without benefits. Use the calculator for both scenarios and compare the net result, not the headline number.
Example: comparing two job offers
Offer A pays Rs 250,000 a month with no benefits. Offer B pays Rs 230,000 plus medical cover and a yearly Rs 300,000 bonus. For A the annual income is Rs 3,000,000 and tax is Rs 116,000 + 20% of Rs 800,000 = Rs 276,000, so take-home is about Rs 227,000 a month. For B the annual income is Rs 3,060,000 and tax is Rs 288,000 (Rs 116,000 plus 20% of Rs 860,000), so take-home averages about Rs 231,000 a month plus the value of medical cover. B is better once benefits are counted, even though its monthly salary looks lower.
What affects your take-home pay
- Taxable allowances. House rent, utilities and conveyance allowances are usually part of taxable salary.
- Provident fund. Contributions can change taxable income depending on your employer's approved scheme.
- EOBI and loans. These come off after tax in most payslips.
- Timing of bonuses. The tax is adjusted in the month the bonus is paid, which can make that month look unusual.
Using take-home pay in your budget
A simple rule is to split net pay into needs, savings and wants, and keep loan instalments below roughly 40% of take-home. Check a possible loan with the loan EMI calculator, and see how tax is calculated line by line in the income tax calculator. Estimate your power bill with the electricity bill calculator to complete the monthly picture, and if you pay zakat, the zakat calculator helps you plan the yearly amount.
Frequently asked questions
How is net salary calculated in Pakistan?
Gross salary plus bonus gives annual income; income tax is calculated on taxable income using the FBR slabs, and other deductions are subtracted. Dividing by twelve gives the net monthly pay.
Does a bonus increase my tax rate?
A bonus adds to annual income, so part of it may fall into a higher slab. Only that part is taxed at the higher rate, not your whole salary.
Is EOBI included?
EOBI contributions depend on the employer and wage ceiling. Enter your actual EOBI amount in the post-tax deductions field.
Why does my payslip differ from this result?
Employers may treat allowances differently, apply tax credits, or adjust tax over the year. Use this tool for planning, not payroll.
Which tax year does it use?
Tax Year 2027, covering 1 July 2026 to 30 June 2027.