Payroll Deduction Calculator Pakistan (EOBI + Social Security)
Calculate total monthly payroll deductions for an employee, including income tax, EOBI (employer 5% + employee 1%), and provincial social security (employer ~5% of minimum wage). Useful for HR and payroll processing
Introduction
Payroll processing in Pakistan involves multiple statutory deductions beyond income tax. Employers must deduct and remit EOBI contributions, provincial social security, and income tax under the PAYE system [citation:18]. Failing to calculate these correctly can result in penalties and compliance issues. This calculator brings all major deductions into one place.
What is this calculator?
The Payroll Deduction Calculator Pakistan computes an employee's total monthly deductions and net take-home pay. It covers income tax (based on current FBR slabs), EOBI (employee 1%), and shows employer-side contributions for EOBI (5%) and provincial social security (~5%) [citation:18].
Formula
Net Salary = Gross Salary − Income Tax − EOBI (Employee 1%)
Employer Contributions = EOBI (5%) + Social Security (~5%)
Important terms
- EOBI： Employees' Old-Age Benefits Institution. Employer contributes 5%, employee contributes 1% of minimum wage [citation:18].
- Provincial Social Security： Employer contribution to PESSI, SESSI, etc. (~5% of minimum wage) [citation:18].
- Minimum Wage： Currently PKR 37,000 per month at federal level [citation:18].
- PAYE： Pay-As-You-Earn income tax withholding system.
How to use the calculator
- Enter the monthly gross salary (PKR).
- Click Calculate Payroll Deductions.
Practical Pakistan-specific example
Example： Monthly salary Rs. 100,000
- Income tax: approximately Rs. 2,500
- EOBI employee: Rs. 370 (1% of Rs. 37,000)
- Net take-home: approximately Rs. 97,130
- Employer EOBI: Rs. 1,850 (5%)
- Employer social security: approximately Rs. 1,850
Who can use the calculator
- HR professionals： Processing payroll deductions.
- Business owners： Understanding total employment costs.
- Employees： Verifying payslip deductions.
Disclaimer
This calculator provides an estimate based on current statutory rates. Actual deductions may vary based on provincial rules, salary structure, and applicable exemptions. Consult a payroll specialist for precise calculations.