PennyCompass

Pakistan Gross-to-Net Salary Calculator

Break a gross package into income tax, EOBI, and net pay, monthly and annually, for FY 2025-26.

Published

Gross package split into tax, EOBI, and net pay.

Net annual pay

Income tax

Employee EOBI

Net monthly

Your breakdown

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Worked example

Start with a gross annual package of PKR 3,000,000, which is 250,000 a month. Income tax under the FY 2025-26 salaried slabs is 300,000: 6,000 from the 1% band, 110,000 from the 11% band, and 184,000 from the 23% band on the slice between 2,200,000 and 3,000,000. The employee EOBI contribution is 1% of the 37,000 minimum wage, so 370 a month or 4,440 for the year, not a percentage of the 3,000,000 salary. Subtracting 300,000 of tax and 4,440 of EOBI leaves a net of 2,695,560 a year. Divided by twelve, a gross of 250,000 a month becomes about 224,630 net in hand. Tax does almost all the work here, while EOBI barely registers because it is pegged to the minimum wage.

Component Annual (PKR)
Gross packageRs 3,000,000
Income taxRs 300,000
Employee EOBIRs 4,440
Net annualRs 2,695,560
Net monthlyRs 224,630

How it is calculated

Gross-to-net splits your full package into the parts that leave your pay and the part that reaches your account. The tool first computes income tax on the gross figure using the progressive FY 2025-26 salaried slabs, adding the 9% surcharge if taxable income passes 10,000,000. It then subtracts the employee EOBI contribution, which is a flat 1% of the prescribed minimum wage rather than of salary, so it is the same small amount for most employees. Net pay is gross minus tax minus EOBI, and the monthly figures are simply those annual numbers divided by twelve. This is a baseline view: it excludes provident fund deductions, voluntary pension scheme contributions, and any tax-exempt allowances your employer may structure, all of which can shift the final number. For a deduction-by-deduction payslip you would layer those company specifics on top of this result.

Frequently asked questions

What is the difference between gross and net salary in Pakistan?
Gross salary is your full package before deductions. Net salary is what reaches your account after income tax under the slabs and the employee EOBI contribution of 1% of the minimum wage are removed. This calculator splits a gross figure into those components and shows monthly equivalents for FY 2025-26.
How is the EOBI deduction calculated on a Pakistan salary?
The employee EOBI contribution is fixed at 1% of the government-prescribed minimum wage, not 1% of the employee's actual salary. Because the minimum wage is relatively low, the EOBI deduction is a small flat amount, currently around PKR 370 per month, and it is the same whether you earn PKR 50,000 or PKR 500,000. Income tax does almost all the deduction work at higher salaries.
What gross monthly salary gives a PKR 200,000 net salary in Pakistan?
Use the related net-to-gross calculator for an exact reverse calculation. As a rough guide, at gross levels where the marginal slab rate is 23%, you need roughly 130% of the target net in gross to cover tax, plus the small EOBI flat amount. At lower gross levels near PKR 100,000 per month the gap is much smaller because the 1% and 11% bands carry low rates. The gross-to-net tool can be used iteratively to bracket the answer.
Does gross-to-net in Pakistan include provident fund deductions?
This calculator covers the two statutory deductions: income tax and employee EOBI. Provident fund contributions, voluntary pension scheme payments, and any company-specific deductions are not included because they vary by employer. If your employer deducts a provident fund contribution from your pay, your actual net will be lower than the figure shown here. Layer those amounts on top of this result manually.

Related calculators

Sources

  1. FBR — Income Tax Rates for Salaried Individuals, Federal Board of Revenue, Pakistan
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