The total pre-tax salary, including basic pay and all allowances, before any deductions.
Gross Salary in Pakistan refers to an employee's total monthly or annual pay before any deductions, comprising basic salary plus all fixed allowances (house rent, conveyance, medical, utility, dearness, special) and any fixed bonuses. It excludes variable components (performance bonus, commission, overtime) unless they are structurally fixed.
Gross salary is the basis for calculating Section 149 income tax withholding, EOBI contributions, and most loan eligibility assessments by Pakistani banks. It is distinct from CTC (which adds employer costs the employee doesn't see) and Net Salary (which subtracts tax, EOBI, PF, and other deductions).
Typical gross-salary structures in Pakistan allocate 50% to 60% as basic salary, with the balance spread across allowances. The basic-salary portion drives several downstream calculations (gratuity, provident fund contribution, EOBI wages), so employers sometimes adjust the basic/allowance split for tax or benefit optimisation. Offer letters should always specify the gross salary monthly and annual figures, along with the CTC breakdown.
Her gross salary of PKR 150,000 breaks down as PKR 90,000 basic + PKR 60,000 allowances.
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