Take-home Pay

Net Salary Calculator Pakistan

Go from gross salary to take-home pay with the exact deductions Pakistani payroll teams use: FBR Section 149 tax, EOBI, and Provident Fund — all in PKR.

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The Formula

Net salary = Gross salary − FBR income tax (Section 149) − EOBI employee contribution (1% of PKR 37,000 ceiling = PKR 370) − Provident Fund employee contribution (~8.33% of basic, if offered) − Other deductions (loan instalments, advances, etc.)

Employer-side contributions (EOBI employer 5%, PF employer 8.33%, social security PESSI/SESSI) are a company cost, not deducted from the employee's gross.

Worked Example

Example: PKR 150,000 monthly gross, basic PKR 90,000, PF enabled

Gross salaryPKR 150,000
Less: FBR tax (Section 149, approx.)− PKR 10,050
Less: EOBI employee contribution− PKR 370
Less: PF employee (8.33% of PKR 90,000 basic)− PKR 7,497
Approx. take-home = PKR 132,083 per month

Gross, taxable and net — don't mix them up

Gross salary is what the employer commits to pay. Taxable salary is gross minus statutory exemptions (like 10% medical allowance). FBR tax is computed on taxable salary. Net salary is gross minus all deductions. Pakistani offer letters often quote gross — make sure your employees understand the difference.

Province matters

Employer-side contributions differ by province: PESSI in Punjab, SESSI in Sindh, BESSI in Balochistan and KPESSI in KP. They are not deducted from the employee — but they are a real cost-to-company that some employers fold into negotiations.

Allowances and perquisites

Cash allowances (house rent, utilities, conveyance above the exempt limit, bonuses, commissions) are part of taxable salary. Benefits-in-kind like a company car, accommodation, or insurance may have a deemed taxable value. Peoplifi handles valuations per FBR rules.

When employees compare offers

The most useful number for an employee is net in-hand. We recommend employers share a structure-wise breakdown: gross, exempt allowances, projected tax, EOBI, PF and projected net. Peoplifi generates this as a one-click offer-letter annex.

Frequently Asked Questions

How is net salary calculated in Pakistan?

Net = Gross − FBR tax − EOBI employee − PF employee − other deductions.

What is the EOBI employee contribution?

1% of the prescribed wage ceiling — PKR 370 at the current PKR 37,000 ceiling.

Do all employers offer PF?

No — PF is voluntary but common. Smaller employers often run gratuity instead.

Skip the spreadsheets

Peoplifi runs these calculations automatically for every employee, every pay cycle — with FBR, EOBI and bank-sheet exports included.

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