How to Read Your Salary Slip in Pakistan 2026 — Every Deduction Explained
Every month millions of Pakistani salaried employees receive a salary slip they never fully understand. You see a gross salary that sounded great in your offer letter — and a net amount that lands in your bank account weeks later that is Rs. 10,000 to Rs. 40,000 less. Where did that money go? This guide explains every single line on a Pakistani salary slip — EOBI, PESSI, income tax withholding, provident fund, medical allowance — in plain language, with real PKR examples for 2026. By the end, you will know exactly what you are being paid, what is being deducted, and whether the numbers on your slip are correct.
Need a professional salary slip for a bank loan or visa?
Generate Your Salary SlipGross Salary vs Net Salary vs CTC: The Three Numbers That Confuse Everyone
In Pakistan, the #1 cause of workplace frustration is the difference between the "Package" and the "Take-Home."
CTC (Cost to Company)
The total annual amount the employer spends on you. This includes your gross salary PLUS employer contributions to EOBI, provident fund, health insurance, and any other benefits. CTC is the number quoted in offer letters — it is NOT what you receive.
Gross Salary
Your total monthly salary before any deductions. Includes basic pay plus all allowances (house rent, medical, conveyance, utilities). This is what your employment contract states.
Net Salary (Take-Home Pay)
The actual amount deposited in your bank account after all deductions have been subtracted. This is always less than your gross salary.
Net Salary = Gross Salary − Employee Deductions
Real Example — Lahore office employee, Rs. 120,000 gross:
Note: Not all companies have PESSI enrollment or provident fund. The exact deductions vary by employer.
Anatomy of a Pakistani Salary Slip
A standard Pakistani salary slip has two sides: Earnings (what you are owed) and Deductions (what is subtracted).
Earnings Side
Basic Pay
The core pay (40-60% of gross). Used to calculate EOBI and Provident Fund.
House Rent Allowance (HRA)
Typically 45% of basic. Tax-exempt up to certain limits under FBR rules.
Medical Allowance
Usually 10% of basic. Completely tax-exempt if structured correctly.
Deductions Side
Income Tax
Withheld by the employer based on your annual income projection.
EOBI
Your contribution to the national pension fund.
Provident Fund
Voluntary long-term savings matched by your employer.
EOBI Explained: What It Is and What You Get
EOBI stands for Employees' Old-Age Benefits Institution. It is Pakistan's national pension system for private sector workers. Any employer with 5+ employees must register them.
| Party | Contribution | Amount (2026) |
|---|---|---|
| Employee | 1% of Min Wage | Rs. 370/month |
| Employer | 5% of Min Wage | Rs. 1,850/month |
Your Legal Right
Many employers deduct EOBI but don't deposit it. Visit eobi.gov.pk and enter your CNIC to verify your record. If your employer is deducting but not depositing, they are committing a crime.
PESSI / SESSI / KPESSI Explained
These are provincial social security schemes. Unlike EOBI (pension), these provide immediate healthcare benefits.
What you pay:
Typically 3% of your basic wage (if you earn below the provincial threshold, usually ~Rs. 30,000).
What you get:
Free specialist treatment, medicines, and surgeries at provincial social security hospitals for you and your family.
Provident Fund (PF): Your Secret Wealth Builder
Provident Fund is a voluntary savings scheme where both you and your employer contribute (usually 8.33% of basic salary).
The Matching Rule
If you contribute Rs. 5,000, your employer must also contribute Rs. 5,000. That is an immediate 100% return on your money before interest.
Check the Vesting Schedule!
You always get your own contributions back. However, you might only get 100% of your employer's match after 5 years of service. Check your PF rules before resigning.
Income Tax Withholding on Your Salary Slip
Your employer projects your annual income and divides the tax by 12 to deduct it monthly. This calculation uses the latest FBR Tax Slabs.
Quick Tax Projection (Rs. 150k Gross)
Is your employer deducting too much tax?
Check with Tax CalculatorOther Deductions You May See on Your Slip
Loan / Salary Advance
Repayment for money already received. Verify installments against your agreement.
Group Life Insurance
A small premium (Rs. 200-500) for a death benefit policy (usually 2-3 years of salary).
Penalty / Disciplinary
Only legal if documented with a written show-cause notice first.
Your Rights as a Salaried Employee in Pakistan
Salary Slip is Mandatory
Refusing to provide one is a violation of provincial labour laws.
Payment by 7th
Wages must be paid before the 7th of the following month.
Overtime Compensation
Beyond 9h/day or 48h/week must be paid at 2x normal rate.
50% Deduction Limit
Employers cannot deduct more than 50% of your wages in any month.
How to Generate a Professional Salary Slip
If your employer does not provide slips, use our professional generator. It includes all Pakistani fields (EOBI, PESSI, PF) and is acceptable for bank loans and visas.
Generate PDF Salary Slip in 2 Minutes
Start GeneratorWorked Example: Salary Slip May 2026
| Earnings Component | Amount (PKR) |
|---|---|
| Basic Salary | 80,000 |
| Gross Salary | 135,000 |
| Deductions | Amount (PKR) |
|---|---|
| Income Tax | 6,200 |
| EOBI | 370 |
| Net Take-Home Pay | 119,366 |
Frequently Asked Questions
Why is my take-home less than my offer?▼
Offers usually quote Gross or CTC. Net salary is what remains after statutory deductions (tax, EOBI) and voluntary ones (Provident Fund). Always ask for the Net figure during negotiations.
Is EOBI compulsory?▼
Yes, for all private companies with 5+ employees. It ensures you have a monthly pension after retirement.
What happens to PF when I resign?▼
You get 100% of your own contributions plus interest. Employer match vesting depends on company policy (usually 3-5 years).
Validate Your Earnings Today
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