How the Pakistan salary after tax calculator is verified

Inputs

Input	Field	Type
Gross monthly salary (PKR)	`grossMonthly`	number
Bonus for the tax year (PKR)	`annualBonus`	number
Insured with EOBI (employee share 1% of the minimum wage)	`eobiInsured`	boolean
Minimum wage EOBI charges on (PKR / month)	`eobiMinimumWage`	number

The formula

Each derived value below is computed by the Valem engine from the expression shown, in this order. Nothing else runs — there is no hidden code path.

Derived value	Field	Formula (JSONata)
Taxable salary for the year	`grossAnnual`	`$round($n(grossMonthly) * 12 + $n(annualBonus), 2)`
Income tax for the year	`incomeTaxAnnual`	$round($bandedCharge(grossAnnual, [{"upTo": $const.salariedBand1, "rate": $const.salariedRate0}, {"upTo": $const.salariedBand2, "rate": $const.salariedRate1}, {"upTo": $const.salariedBand3, "rate": $const.salariedRate2}, {"upTo": $const.salariedBand4, "rate": $const.salariedRate3}, {"upTo": $const.salariedBand5, "rate": $const.salariedRate4}, {"upTo": $const.salariedBand6, "rate": $const.salariedRate5}, {"upTo": $const.salariedBand7, "rate": $const.salariedRate6}, {"upTo": null, "rate": $const.salariedRate7}]), 2)
Income tax / month	`incomeTaxMonthly`	`$round(incomeTaxAnnual / 12, 2)`
EOBI 1% / month	`eobiMonthly`	`eobiInsured ? $round($n(eobiMinimumWage) * $const.eobiEmployeeRate, 2) : 0`
Net / year	`netAnnual`	`$round($max([0, grossAnnual - incomeTaxAnnual - eobiMonthly * 12]), 2)`
Net / month	`netMonthly`	`$round(netAnnual / 12, 2)`

Rates and thresholds

The expressions above read these as $const. They are the figures the annual refresh replaces, so they live as data rather than being written into the formulas — which is what makes a year-on-year change a one-line diff instead of an edit to arithmetic.

Constant	Value
`salariedBand1`	600000
`salariedBand2`	1200000
`salariedBand3`	2200000
`salariedBand4`	3200000
`salariedBand5`	4100000
`salariedBand6`	5600000
`salariedBand7`	7000000
`salariedRate0`	0
`salariedRate1`	0.01
`salariedRate2`	0.11
`salariedRate3`	0.2
`salariedRate4`	0.25
`salariedRate5`	0.29
`salariedRate6`	0.32
`salariedRate7`	0.35
`eobiEmployeeRate`	0.01

Test vectors (8)

Every case is executed against this model on each build, by the Java engine and independently by a JavaScript one. A mismatch of a single cent fails the build, so the page cannot ship advertising a figure the model no longer produces.

Case 1 — N1 Rs200,000 a month: Rs2,400,000 taxable, income tax Rs156,000, EOBI Rs407

given `grossMonthly`	200000
given `annualBonus`	0
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `grossAnnual`	2400000
expect `incomeTaxAnnual`	156000
expect `incomeTaxMonthly`	13000
expect `eobiMonthly`	407
expect `netMonthly`	186593

Case 2 — N1b Rs200,000 a month: net for the year

given `grossMonthly`	200000
given `annualBonus`	0
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `netAnnual`	2239116

Case 3 — N2 Rs50,000 a month: Rs600,000 does not exceed the nil band

given `grossMonthly`	50000
given `annualBonus`	0
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `incomeTaxAnnual`	0
expect `netAnnual`	595116

Case 4 — N3 Rs100,000 a month: 1% of the Rs600,000 above Rs600,000 = Rs6,000

given `grossMonthly`	100000
given `annualBonus`	0
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `incomeTaxAnnual`	6000

Case 5 — N4 Rs150,000 a month and a Rs300,000 bonus: Rs6,000 + 11% of Rs900,000 = Rs105,000

given `grossMonthly`	150000
given `annualBonus`	300000
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `grossAnnual`	2100000
expect `incomeTaxAnnual`	105000

Case 6 — N5 Rs7,000,000 for the year: the table’s Rs1,424,000 at the top band edge

given `grossMonthly`	500000
given `annualBonus`	1000000
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `incomeTaxAnnual`	1424000

Case 7 — N6 Rs1,000,000 a month: Rs1,424,000 + 35% of Rs5,000,000, no surcharge on salary

given `grossMonthly`	1000000
given `annualBonus`	0
given `eobiInsured`	yes
given `eobiMinimumWage`	40700
expect `incomeTaxAnnual`	3174000

Case 8 — N7 not insured with EOBI: no contribution

given `grossMonthly`	200000
given `annualBonus`	0
given `eobiInsured`	no
given `eobiMinimumWage`	40700
expect `eobiMonthly`	0
expect `netAnnual`	2244000

Sources

Income Tax Ordinance 2001 (FBR, amended to 30 June 2026), First Schedule Pt I Div I(2) · checked 2026-11-01
Finance Act 2026 (Gazette, 26 June 2026): new salaried table, s.4AB surcharge withdrawn · checked 2026-11-01
EOBI Act 1976 s.9B: insured person pays 1% of wages · checked 2026-11-01
Finance Division OM, 21 Aug 2026: federal civil employees’ pay floor Rs40,700 (not an EOBI wage) · checked 2026-11-01

Check it yourself — and reuse it

The whole model as JSON — inputs, outputs, formulas, vectors and sources in one re-runnable document.

This model is published under CC BY 4.0: use it, adapt it, build on it, with attribution. The licence covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds are law, and nobody licenses those; the sources above are where they come from.

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