How gross to net salary works in Pakistan
Your gross salary is what your contract states before deductions. Your net, or in-hand, salary is what reaches your bank account after income tax, and after other deductions such as provident fund or EOBI if you have them. This calculator handles the income tax step: net = gross − income tax − any surcharge.
Because tax rises with income, going from net to gross is not a simple percentage. The calculator solves it by finding the gross salary whose take-home equals your target under the 2026-27 slabs. That answers the question negotiators ask most: what gross salary do I need to ask for to take home a given amount?
Examples for 2026-27
Computed from the slabs used by the calculator:
- A gross salary of Rs 1,00,000 a month: Rs 500 monthly tax (Rs 6,000 a year), Rs 99,500 take-home, Rs 0 more per month than in 2025-26.
- A gross salary of Rs 2,00,000 a month: Rs 13,000 monthly tax (Rs 1,56,000 a year), Rs 1,87,000 take-home, Rs 500 more per month than in 2025-26.
- A gross salary of Rs 3,00,000 a month: Rs 34,667 monthly tax (Rs 4,16,000 a year), Rs 2,65,333 take-home, Rs 4,167 more per month than in 2025-26.
- A gross salary of Rs 5,00,000 a month: Rs 92,000 monthly tax (Rs 11,04,000 a year), Rs 4,08,000 take-home, Rs 14,750 more per month than in 2025-26.
- A gross salary of Rs 10,00,000 a month: Rs 2,64,500 monthly tax (Rs 31,74,000 a year), Rs 7,35,500 take-home, Rs 42,608 more per month than in 2025-26.
What in-hand salary excludes
- Provident fund, EOBI and other payroll deductions.
- Allowances that are exempt or taxed differently.
- Tax credits and rebates you may claim on your return.
- Any income other than salary.
How to use it
- Pick Gross → net, or Net → gross.
- Choose monthly or annual and enter the amount.
- Read the take-home or the gross salary you need, and open the breakdown to verify it.
Frequently asked questions
How do I calculate take-home salary from gross?
Enter your gross monthly salary. Take-home pay is gross salary minus income tax (and any surcharge), divided over twelve months. The gross-to-net page also works backwards, from the take-home you want to the gross salary you would need.
Does this calculator include allowances, provident fund or EOBI?
No. It treats the whole gross salary as taxable and covers salaried income only. Exempt allowances, provident fund and EOBI contributions, tax credits and rebates, and other income such as rent or business profit are not modelled, so your payslip can differ. It is not tax advice.
How is salary tax calculated in Pakistan?
Tax is charged on annual taxable income in slabs. Each slab has a fixed amount, which is the tax on all lower slabs, plus a percentage of the income above the slab’s lower limit. Your employer deducts it monthly based on your estimated annual salary. This calculator adds the slabs up one by one and shows each step so you can check it.
What is the tax-free salary limit in Pakistan for 2026-27?
The first Rs 600,000 of annual taxable income is taxed at 0%, which is Rs 50,000 a month. That threshold is the same in 2026-27 as in the two tax years before it, and above it tax starts at 1%.
Where do the slabs come from?
They are read from the law itself as published by the Federal Board of Revenue: Finance Bill 2026 (published by FBR), First Schedule Part I Division I clause (2) and section 4AB. The verification date and a link to the source are shown next to the slab table (last verified 24 September 2026).
Covers salaried income tax only, not other deductions. Slabs verified on 24 September 2026. Not tax advice.