Pakistan Salary Calculator 2026–2027: FBR Tax Slabs, EOBI & Take-Home Pay Guide
Calculate your exact estimated net take-home pay in Pakistan using verified statutory payroll rules under the Federal Board of Revenue (FBR) First Schedule, Part I, Division I salaried tax schedule. This guide details contractual gross salary, statutory slab withholdings, mandatory EOBI contributions, and effective take-home pay.
How Gross-to-Net Salary Calculation Works in Pakistan
- Annual Gross Salary: Contractual monthly gross pay (basic salary + allowances) is annualized by multiplying by 12.
- EOBI Deduction: Mandatory employee EOBI of 1% on the statutory wage ceiling (PKR 37,000/month = PKR 370/month or PKR 4,440/year) is subtracted.
- Progressive Tax Slabs: Taxable income is evaluated against FBR progressive slabs (0% up to PKR 600k, 5% to PKR 1.2M, 15% to PKR 2.2M, 25% to PKR 3.2M, 30% to PKR 4.1M, and 35% on the excess).
- Monthly Take-Home: Total annual tax and EOBI deductions are divided by 12 and deducted from monthly gross salary to yield net spendable income.
Representative Salary Examples (Tax Year 2026–2027)
| Monthly Gross | Annual Gross | Annual FBR Tax | Annual EOBI | Monthly Take-Home |
|---|---|---|---|---|
| PKR 50,000 | PKR 600,000 | PKR 0 (0%) | PKR 4,440 | PKR 49,630 |
| PKR 100,000 | PKR 1,200,000 | PKR 30,000 (2.5% eff.) | PKR 4,440 | PKR 97,130 |
| PKR 250,000 | PKR 3,000,000 | PKR 380,000 (12.7% eff.) | PKR 4,440 | PKR 217,963 |
| PKR 500,000 | PKR 6,000,000 | PKR 1,365,000 (22.8% eff.) | PKR 4,440 | PKR 385,880 |
Statutory Provenance & Ruleset Details
- Provincial professional taxes (e.g., Punjab / Sindh professional tax schedules)
- Charitable tax credits under Section 61 and educational credits
- Advance adjustable withholding taxes (e.g., motor vehicle, electricity, banking)
Frequently Asked Questions (FBR Salary Tax & Payroll)
What is the tax-exempt salary threshold in Pakistan for Tax Year 2026–2027?
Under the First Schedule, Part I, Division I of the Income Tax Ordinance 2001 (as amended by Finance Act 2024), annual salaried income up to PKR 600,000 (PKR 50,000 per month) is taxed at 0%. Income above PKR 600,000 enters progressive tax slabs starting at 5%.
How is employee EOBI contribution calculated in Pakistan?
The Employees' Old-Age Benefits Institution (EOBI) mandates an employee contribution of 1% based on the statutory minimum wage (notified at PKR 37,000/month for statutory wage ceiling parity). The maximum employee deduction is PKR 370 per month (PKR 4,440 per year).
When does the 10% super-tax surcharge apply to salaried individuals?
Under Section 4AB of the Income Tax Ordinance, a 10% surcharge on total income tax liability applied to salaried individuals earning more than PKR 10,000,000 in Tax Year 2025. In Tax Year 2026–2027 statutory models, this surcharge structure is tracked specifically based on legislative notification.
What qualifies an individual as a salaried taxpayer in Pakistan?
An individual is classified as a salaried taxpayer under the Income Tax Ordinance if salary income constitutes more than 75% of their total taxable income for the fiscal year. If business or investment income exceeds 25%, the higher non-salaried tax slabs apply.
Are allowances like medical allowance and conveyance tax-exempt?
Under Clause 139, Part I of the Second Schedule, medical allowance provided in accordance with terms of employment is exempt from income tax up to 10% of basic salary, provided free medical treatment or hospitalization coverage is not separately reimbursed. Conveyance allowance is generally taxable unless provided exclusively for official duty performance.