The amount an employee actually receives after all statutory and voluntary deductions.
Net Salary (also known as take-home pay) is the actual amount credited to an employee's bank account each month, calculated as Gross Salary minus all deductions: income tax (Section 149), employee EOBI contribution, employee PESSI/SESSI contribution (where applicable), employee provident fund, union dues, loan recoveries, and any other authorised deductions.
For a Pakistani salaried employee, typical deductions amount to 10% to 30% of gross salary, depending on the income tax slab. An employee earning PKR 150,000 gross might take home roughly PKR 120,000 to PKR 135,000 net after these deductions. The gap widens at higher salary slabs due to progressive income tax.
Net salary is what employees care about most because it's their usable income. However, comparing offers purely on net salary misses the picture: CTC includes employer contributions to retirement and insurance that add long-term value. Payslips should always itemise gross, each deduction, and net for transparency. IBFT salary files contain net amounts only.
His net salary of PKR 125,000 lands in his account on the 28th of every month via IBFT.
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