Payroll calculator Pakistan
One screen for the stack that actually produces a Pakistani payslip: earnings, FBR tax, EOBI, provident fund, attendance cuts, loan EMI, advance recovery and expense reimbursement. The order matches StreamHCM's payroll run.
Open the calculatorBuild a sample payslip
Same order StreamHCM uses: earnings, taxable income, statutory deductions, then net.
Earnings
Exempt up to 10% of basic if the employer does not also reimburse medical bills.
Attendance, claims & recoveries
Paid at 2× ordinary hourly rate on gross ÷ 26 ÷ 8.
In StreamHCM, non-taxable claims (the default) hit net without entering the tax slab.
FY 2026-27 payslip
- Gross (incl. OT & taxable claims)Rs. 160,000
- Taxable income this monthRs. 150,000
- Income tax withheld− Rs. 6,000
- EOBI (employee)− Rs. 407
- Provident fund− Rs. 0
- Absent deduction− Rs. 0
- Loan + advance− Rs. 0
- Total deductionsRs. 6,407
Gross is a sum of lines, not a single field
StreamHCM starts from salary distributions (basic and other earning types) plus recurring allowances. Encashment of leave, authorised overtime and taxable expense claims are added after that. A mid-month joiner or leaver is multiplied by a prorated factor so the structure is not paid for days the person was not employed. Daily-wage labour is a different contract: rate × days present. This calculator is the monthly-salaried path.
EOBI is not 1% of gross
Covered employers contribute 5% and employees 1% on a wage base the policy defines, frequently a fixed notified minimum, currently Rs. 40,700 at federal level after the 2026-27 increase, pending provincial gazettes. Applying those percentages to full gross is how a spreadsheet quietly over-deducts every month. In StreamHCM the social-security policy holds the base type, rates and ceiling; a payroll rule named “EOBI” is skipped if that policy is already on, so the contribution is not charged twice.
Employer EOBI is stored on the run and never subtracted from net. The employee share is. Provincial social security, where it applies, is a separate percentage on its own wage threshold.
Expense claims on the same payslip
Companies either reimburse claims as a separate payment or fold them into payroll. StreamHCM snapshots taxability at approval: a later settings change cannot rewrite a claim already signed. Non-taxable claims (the default) are added to gross and net after percentage rules have run, so they do not inflate EOBI or income tax. Taxable claims join the wage base. That is the difference between a travel receipt and a taxable allowance dressed up as a claim.
Loans and advances are recoveries, not tax
An approved loan installment and a salary-advance recovery reduce net. They do not reduce taxable income. Mixing them into “deductions” on a spreadsheet without labelling them is why employees argue that “tax went up” when it was the EMI. The breakdown on a StreamHCM payslip keeps those lines named.
For the tax step itself see the salary tax calculator. For late and absence rupees see the attendance calculator.
Payroll questions
Gross = basic + allowances + authorised overtime + taxable reimbursements. Deductions = income tax + employee EOBI + provident fund + loans + advances + attendance penalties. Net = gross − deductions. Employer EOBI is a company cost and does not reduce net.
Covered establishments contribute 5% (employer) and 1% (employee) on a defined wage base, often the notified minimum wage, not the full gross. Using full salary as the base is the usual spreadsheet mistake. Finance Act 2026 lifted the national minimum wage to Rs. 40,700.
If the company reimburses via payroll, StreamHCM adds the approved claim to the payslip. Non-taxable claims (the default) increase net without entering the FBR slab. Taxable claims join gross and taxable income so % rules and tax apply.
Payment of Wages Act: for factories and commercial establishments, pay before the expiry of the tenth day after the wage period. Many employers target the 7th. Tax withheld from that run is a separate FBR deposit clock.
Other HR tools on StreamHCM
Tax Slab Calculator
Run your monthly salary against the current FBR salaried slabs and see monthly tax, yearly tax and take-home. Updated for FY 2026-27.
Salary Tax Calculator
How employers withhold tax under Section 149: annualise taxable salary, match the slab, then convert the annual bill into a monthly deduction.
Attendance Calculator
Turn present days, absences, late minutes, half-days and overtime into rupees using the same daily-rate and hourly-rate logic StreamHCM uses in payroll.
Deductions Calculator
Stack income tax, EOBI, provident fund, loan EMI, advances and attendance penalties to see what actually comes off gross before net pay.
Run this in live payroll, not a spreadsheet
StreamHCM applies the same FBR slabs, attendance rules, EOBI and expense-claim logic across every employee, then generates the payslip.