How much tax is deducted from a Rs. 200,000 salary in Pakistan?

On Rs. 200,000/month (Rs. 2,400,000/year) a salaried person pays Rs. 180,000 + 25% of Rs. 200,000 = Rs. 230,000/year, or about Rs. 19,167/month — an effective rate of 9.6%.

Is EOBI compulsory in Pakistan?

For private-sector establishments with five or more employees, yes. The employee pays 1% of wages (capped at Rs. 500/month) and the employer pays 5%.

Does provident fund reduce my income tax?

Recognised provident fund contributions can qualify for tax credit within limits, and the fund grows tax-deferred. The main point is that it's your own savings, not a tax.

What's the difference between gross and net salary?

Gross is your total package before deductions. Net (take-home) is what reaches your account after income tax, EOBI, provincial social security and provident fund.

Pakistan6 min readUpdated 12 September 2026

How to Calculate Your Take-Home Salary in Pakistan (Gross to Net)

Net pay is gross salary minus income tax, EOBI (1%), provincial social security and any provident fund. Tax is the big one; the rest are small and mostly fixed.

Skip to the Pakistan Salary Calculator — Gross to Net 2025-26

Net salary = gross − income tax − EOBI − PESSI/SESSI − provident fund. Income tax uses the Finance Act 2025 salaried slabs. EOBI is 1% of wages capped at Rs. 50,000 insurable (so max Rs. 500/month). PESSI/SESSI is a flat Rs. 40/month in Punjab/Sindh. Provident fund, if you're enrolled, is usually 8.33% or 10% of basic salary.

The deductions, one by one

Income tax — the FY2025-26 salaried slabs, applied to annual gross then divided by 12. This is by far the largest deduction at higher salaries. See the income tax on salary guide for the slab table.
EOBI — 1% of wages, but capped: anyone earning above Rs. 50,000/month pays a flat Rs. 500. Your employer adds 5% on top, which doesn't come out of your pay.
PESSI (Punjab) / SESSI (Sindh) — a nominal Rs. 40/month employee contribution. KPK and Balochistan have no equivalent employee deduction.
Provident fund — only if your employer runs one. Typically 8.33% or 10% of basic salary (not gross). It's your own retirement savings, usually matched by the employer.

Why the basic-salary percentage matters

Gross salary is basic + allowances (house rent, medical, conveyance). Provident fund and some benefits are calculated on basic only, which is typically 60–70% of gross in the private sector. A lower basic means a smaller PF deduction now but also a smaller PF balance later.

Worked examples

Rs. 150,000/month gross, no provident fund

Private-sector employee, EOBI applicable, outside Punjab/Sindh.

Annual gross (×12): Rs. 1,800,000
Annual income tax (15% slab): Rs. 120,000
Monthly income tax: Rs. 10,000
EOBI (1% of the Rs. 50,000 cap): Rs. 500
Total monthly deductions: Rs. 10,500

Net take-home about Rs. 139,500/month — an effective tax rate of 6.7%.

At this salary, tax is almost the entire deduction — EOBI is a flat Rs. 500.

Rs. 300,000/month gross, 8.33% provident fund, Punjab

Basic 60% of gross, EOBI applicable, PESSI (Punjab).

Annual income tax (30% slab): Rs. 550,000
Monthly income tax: Rs. 45,833
EOBI: Rs. 500
PESSI (Punjab): Rs. 40
Provident fund (8.33% of Rs. 180,000 basic): Rs. 14,994
Total monthly deductions: Rs. 61,367

Net take-home about Rs. 238,633/month.

The provident fund isn't lost money — it's your retirement savings, usually matched by your employer.

Common mistakes

Assuming allowances are tax-free — most cash allowances are part of taxable salary
Confusing the slab rate with the effective rate — you don't pay your top slab rate on the whole salary
Calculating provident fund on gross instead of basic
Forgetting that a non-filer faces higher withholding on unrelated transactions — being on the ATL is worth it

Calculate your exact net salary

Enter your gross, basic percentage, provident fund option and province for a full monthly breakdown.

Open the PK Salary calculator

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The deductions, one by one

Income tax — the FY2025-26 salaried slabs, applied to annual gross then divided by 12. This is by far the largest deduction at higher salaries. See the income tax on salary guide for the slab table.

EOBI — 1% of wages, but capped: anyone earning above Rs. 50,000/month pays a flat Rs. 500. Your employer adds 5% on top, which doesn't come out of your pay.

PESSI (Punjab) / SESSI (Sindh) — a nominal Rs. 40/month employee contribution. KPK and Balochistan have no equivalent employee deduction.

Provident fund — only if your employer runs one. Typically 8.33% or 10% of basic salary (not gross). It's your own retirement savings, usually matched by the employer.