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Tools · Payroll

Salary increment calculator

Current monthly gross, then a percentage or a fixed rupee amount. The boxes open on Rs. 80,000 and 10 percent: new gross Rs. 88,000, Rs. 8,000 a month, Rs. 96,000 a year. Amounts are rounded to the nearest rupee.

Illustrative · 10%Salary Increment
New monthly grossRs. 88,000
  • Current grossRs. 80,000
  • Monthly difference+ Rs. 8,000
  • Annual difference+ Rs. 96,000
Rounded to the nearest rupee. Tax is separate.
Increment10%
BasisMonthly gross

New gross from a percent or a rupee amount

Opens on Rs. 80,000 and 10%. That is Rs. 88,000, which is Rs. 8,000 a month and Rs. 96,000 a year.

Use gross if the letter raises gross. Use basic if the letter raises basic only.

10 means ten percent of the current figure.

Shown on the result only. It does not change the rupee figures.

Worked example

New monthly grossRs. 88,000
  • Current monthly grossRs. 80,000
  • Monthly difference+ Rs. 8,000
  • Annual difference+ Rs. 96,000
  • Increment10%
  • New monthly gross, roundedRs. 88,000
New salary = current × (1 + percent ÷ 100), then round to the nearest rupee. Monthly difference = new − current. Annual difference = monthly difference × 12. Rupee amounts are rounded to the nearest rupee. No effective month selected. The month does not change the arithmetic. Tax is not included.
Illustrative · 10%How the number is worked out
  1. 1New salary = current × (1 + percent ÷ 100)
  2. 2Round the new salary to the nearest rupee
  3. 3Monthly difference = new salary − current salary
  4. 4Annual difference = monthly difference × 12
New monthly grossRs. 88,000

The formulas

  • Percentage. New salary = current × (1 + percent ÷ 100). Round to the nearest rupee.
  • Fixed amount. New salary = current + the rupee amount. Round to the nearest rupee.
  • From old and new salary. Monthly difference = new − current. Increment percent = monthly difference ÷ current × 100.
  • In every mode. Annual difference = monthly difference × 12. The optional effective month is a label for the letter. It does not change the figures.

Worked example

Current monthly gross Rs. 80,000. Increment 10 percent. 80,000 × 1.10 = 88,000, which is already a whole number of rupees. Monthly difference = 88,000 − 80,000 = 8,000. Annual difference = 8,000 × 12 = 96,000. The same rupees appear if you enter a fixed increment of Rs. 8,000, or if you enter an old salary of Rs. 80,000 and a new salary of Rs. 88,000 and ask for the percent. That third path returns 10 percent.

If a percentage does not land on a whole rupee, the new salary is rounded to the nearest rupee and the differences use that rounded salary. The result panel says when a figure was rounded, and it shows the unrounded amount.

Tax changes when the gross changes

This calculator stops at gross. Salary tax in Pakistan is withheld under Section 149 on the annual picture, so a raise in the middle of the year changes the remaining months. Run the new gross in the salary tax calculator. The certificate the employee needs at year end is described in the salary tax certificate guide. Payslip lines are in the salary slip format.

StreamHCM payroll applies the FBR slabs stored for the year, and the performance record keeps an increment history next to the review. See payroll software in Pakistan and performance management. The letter itself is a document you file. See employee documents.

An estimate of the gross change only. It is not a pay recommendation and it is not tax advice.

FAQ

Salary increment questions

No. A higher gross can move the FBR slab and the monthly withholding. Put the new gross into the salary tax calculator. This page only works out the new gross, the monthly gap, the yearly gap and the percentage.

Employee name, old monthly figure, new monthly figure, whether the change is a percent or a fixed rupee amount, the effective month, and who approved it. File it with the employee documents. It is a company letter.

That is a company decision. This calculator does not use a consumer price index and it does not assume an inflation rate. If you want a cost-of-living comparison, read the series the Pakistan Bureau of Statistics publishes and decide separately.

On the monthly figure you type. If the letter raises basic pay only, enter basic. If it raises gross, enter gross. The formula does not split allowances.

Every rupee amount is rounded to the nearest rupee, and the differences use those rounded salaries. The opening example is already exact: Rs. 80,000 plus 10 percent is Rs. 88,000, which is Rs. 8,000 a month and Rs. 96,000 a year.

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.