Salary deductions calculator
Gross is the easy number. The fight is always over what left it. Stack FBR tax, EOBI, provident fund, attendance penalties, loan EMI and advance recovery the way a StreamHCM payslip lists them.
Open the calculatorWhat comes off gross
Statutory items first, then company recoveries. Zakat is claimed on the annual return, not through payroll.
Deduction stack
- Income tax (FBR withholding)Annualised taxable salary against the selected slab year− Rs. 7,100
- EOBI employee share1% of Rs. 40,700 when EOBI is on− Rs. 407
- Provident fund8.33% of basic− Rs. 9,996
- Absent daysGross ÷ 26 × absent days− Rs. 6,154
- Late minutesHourly rate × time lost− Rs. 769
- Loan EMIScheduled installment for this cycle− Rs. 15,000
- Advance recoverySalary advance paid back this month− Rs. 5,000
- Take-homeRs. 115,574
Two families of deduction
Statutory: income tax, EOBI, and (where the province and wage band require it) social security. Company: provident fund under the trust deed, loan installments the employee signed, salary advances being recovered, and attendance rules the payroll engine is told to apply. Mixing the two on one “Misc. deduction” line is how a payslip becomes impossible to audit.
The Payment of Wages Act is the outer fence for what may be taken from wages at all. Absence deductions cannot exceed the share of the wage period the person missed. Fines need standing orders. “We deducted it because HR said so” is not a head of deduction.
Tax is a withholding, not a settlement
Monthly income tax on this page is the flat-year method: taxable month × 12, slab, divide by 12. Credits for Zakat, approved donations and VPS pension contributions are claimed when the employee files. They are not a payroll knob. Medical exemption (up to 10% of basic) is a salary-structure question, which is why the payroll calculator lets you split medical out.
EOBI and provident fund are different bases
EOBI is a percentage of a defined wage, often minimum wage, for covered staff. Provident fund is almost always a percentage of basic, matched by the employer. Using gross for both is two errors in one cell. StreamHCM computes social security from the company policy and PF from the employee deduction / earning setup so those bases cannot silently swap.
Attendance penalties belong on named lines
Absent days and late minutes should show as themselves, with the rate visible. StreamHCM stores the formula on the payslip breakdown (daily rate, hours, cap) so an employee can see why Rs. 2,000 left the net, instead of arguing with a round figure labelled “other”. Details of that arithmetic are on the attendance calculator.
Deduction questions
Payment of Wages Act lists permitted heads: absence, fines under standing orders, house accommodation, advances, loans, and other items approved in the statute. Income tax and EOBI sit under their own laws. A company cannot invent a penalty and take it from wages because a policy PDF says so.
Usually no. Statutory Zakat on bank accounts is a bank deduction in Ramadan. Section 60 lets you claim it on the annual return. Payroll withholding is Section 149 tax, not Zakat.
Where a recognised fund exists, both sides typically contribute a percentage of basic. Only the employee share reduces net. Employer contributions are a company cost and are exempt for the employee within Sixth Schedule limits.
Live payroll also applies branch-specific rules, caps, half-day types, and a tax ledger that already holds earlier months. This page is one employee, one month, starting from zero year-to-date tax.
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.
Payroll Calculator
Build a payslip from basic, allowances, overtime, EOBI, provident fund, loans, expense claims and FBR tax. The same stack StreamHCM runs on payday.
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.