Income tax gets most of the attention, but several other deductions commonly reduce a Pakistani employee's take-home pay. Here's what to look for on your payslip.
Income Tax
The largest deduction for most mid-to-higher earners, calculated based on your projected annual income against current tax slabs. See our tax calculator to verify your own deduction.
Provident Fund Contribution
If your employer offers a Provident Fund scheme, your contribution (commonly a percentage of your basic salary) is deducted each month, typically matched by an equal employer contribution that you don't see on your payslip but that still accumulates for you.
EOBI Contribution
A relatively small, often-overlooked deduction for employees at formal-sector employers registered with EOBI — see our EOBI explainer for details.
Loan Repayments
If you've taken a salary advance or personal loan through your employer, installments are typically deducted directly from your monthly salary until repaid.
Health Insurance Co-Pay
Some employers deduct a small employee contribution toward group health insurance premiums, particularly for family/dependent coverage beyond the base employee-only plan.
Absence/Leave Deductions
Unpaid leave, or leave taken beyond your allotted quota, is typically deducted proportionally from your salary, calculated based on your daily or per-working-day rate.
What to Do If Something Looks Wrong
Compare your payslip deductions against your employment contract and HR policy — and don't hesitate to ask HR or Finance for a clear explanation of any line item you don't understand. A legitimate employer should be able to explain every deduction clearly.