Net salary after income tax and employee EOBI.
Annual take-home
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Income tax
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Employee EOBI
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Worked example
Suppose your gross package is PKR 2,400,000 a year, which is 200,000 a month. Income tax under the FY 2025-26 salaried slabs comes to 162,000: the first 600,000 is free, the next 600,000 at 1% is 6,000, the 1,000,000 in the 1,200,001 to 2,200,000 band at 11% is 110,000, and the final 200,000 above 2,200,000 at 23% is 46,000, which adds up to 162,000. The employee EOBI contribution is not 1% of your salary, it is 1% of the prescribed minimum wage of 37,000, so it is 370 a month, or 4,440 across twelve months. Subtracting 162,000 of tax and 4,440 of EOBI from the 2,400,000 gross leaves a net of 2,233,560 a year, which is about 186,130 a month in hand. EOBI is deliberately tiny because it is a flat levy on the minimum wage, not on your actual pay.
| Item | Annual (PKR) |
|---|---|
| Gross salary | Rs 2,400,000 |
| Less income tax | Rs 162,000 |
| Less employee EOBI (1% of Rs 37,000 x 12) | Rs 4,440 |
| Net annual take-home | Rs 2,233,560 |
| Net monthly take-home | Rs 186,130 |
How it is calculated
Take-home pay starts from gross salary and removes two statutory deductions. The first is income tax under the progressive salaried slabs, with the 9% surcharge added if taxable income exceeds 10,000,000. The second is the employee Employees Old-Age Benefits Institution contribution, which is 1% of the prescribed minimum wage rather than of your salary, so it is a small fixed amount of roughly 370 a month for almost everyone. The employer separately pays 5% of the same minimum-wage base, but that does not reduce your pay and is not shown here. The tool computes annual tax and twelve months of employee EOBI, subtracts both from gross, and divides by twelve for the monthly figure. Provident fund deductions, voluntary pension contributions and any allowances that are exempt are not modelled by default, so treat the result as the baseline before company-specific items.