Estimate monthly salary tax withholding under Section 149 using the current FY 2025–26 salaried slabs — the same way Peoplifi computes it for thousands of Pakistani employees every month. Built for HR teams, payroll accountants, CFOs, and employees who want a clean second opinion on what's being deducted from their paycheck.
✓ Last verified: FY 2025–26 slabs verified against the Finance Act 2025
Estimate Section 149 monthly withholding. For guidance only — your actual tax depends on allowances and mid-year adjustments.
Slab rates used: 0% to 600k · 1% to 1.2M · 11% to 2.2M · 23% to 3.2M · 30% to 4.1M · 35% above. Bonus, commission, arrears, and provident fund adjustments are not modeled here — Peoplifi handles those automatically in live payroll.
Slabs for FY 2025–26 (salaried individuals, illustrative): 0% up to PKR 600,000; 1% between 600,001–1,200,000; 11% between 1,200,001–2,200,000; 23% between 2,200,001–3,200,000; 30% between 3,200,001–4,100,000; 35% above 4,100,000 per year. Non-salaried slabs are different — this calculator is for salaried employees only. Always confirm the live Finance Act and any SROs issued during the year.
Example: PKR 150,000 monthly gross salary (PKR 1,800,000 annual)
See how the calculation changes across different salary bands and tenures — use these to benchmark your own numbers.
This calculator and its explainers are grounded in the following statutes, ordinances and official circulars. Always confirm against the latest gazette notification before filing.
Salaried slabs for FY 2025–26 are: 0% up to PKR 600,000; 1% from 600,001 to 1,200,000; 11% from 1,200,001 to 2,200,000; 23% from 2,200,001 to 3,200,000; 30% from 3,200,001 to 4,100,000; and 35% above 4,100,000 per year. These apply to annual taxable salary, not monthly. Always confirm against the latest Finance Act before filing.
You project annual taxable salary, apply the slabs to get annual tax, then divide by 12. On every pay change (increment, bonus, arrear) you redo the projection and spread the remaining liability over the remaining months of the tax year.
Medical allowance is exempt up to 10% of basic salary under the Second Schedule, provided it's paid as a distinct medical allowance and not wrapped into a flat gross. Above 10% of basic it becomes fully taxable.
Yes, fully taxable under the salary head. They're added to projected annual salary when computing withholding. If the employer absorbs the tax ("net bonus"), gross up first, then deduct.
No. Employer contributions to EOBI and to a recognised provident fund (up to the statutory cap) are excluded from taxable salary. The employee's own EOBI contribution comes out of their net, it does not reduce taxable salary.
Recompute projected annual salary at the new rate. Subtract tax already deducted. Spread the residual over the remaining months. This YTD correction is a common source of errors in manual payroll.
Gratuity from an approved fund is exempt up to PKR 300,000 under Clause (13) of Part I of the Second Schedule. Above that, it's taxable as salary in the year of receipt. Unapproved gratuity has different limits — check the scheme's approval status.
Tax withheld in a month must be deposited by the 15th of the next month. The monthly statement (Form 149 / Annex-C) is filed on IRIS within 15 days after month-end. Annual statements are due by 31st July for the prior tax year.
No. Non-salaried individuals fall under a different, higher slab table. This calculator is for salaried employees only — the salary slabs in the First Schedule, Part I, Division I.
For Section 149 purposes, employers only withhold on salary income. The employee consolidates all heads on their own annual return on IRIS. They may owe additional tax there; Section 149 does not cover it.
No — this is an independent reference calculator built by Peoplifi. For statutory filings always use IRIS and consult a tax advisor for edge cases.
The Income Tax Ordinance 2001 and the latest Finance Act are published on the FBR website. Section 149 sits in Chapter X, Division III. The salary slabs sit in the First Schedule, Part I, Division I.
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