"Gross salary" and "net salary" (also called take-home pay) are two of the most commonly confused terms on a Pakistani payslip — and the gap between them can be significant.
Gross Salary
Your gross salary is the total amount your employer has agreed to pay you before any deductions — this is usually the number quoted in a job offer or advertised in a job posting, and it's the figure most people mean when discussing "salary" in casual conversation.
Net Salary (Take-Home Pay)
Your net salary is what actually lands in your bank account after deductions — primarily income tax, but potentially also Provident Fund contributions, EOBI contributions, and any other company-specific deductions (loan repayments, insurance premiums, etc.).
Common Deductions Between Gross and Net
- Income tax — calculated based on your projected annual income against current tax slabs
- Provident Fund — if your employer offers this, typically a percentage of your basic salary
- EOBI contribution — a smaller, often overlooked deduction at many formal-sector employers
- Other company-specific deductions — loan repayments, health insurance co-pays, or similar
Why This Matters When Negotiating
When comparing job offers, always clarify whether a quoted figure is gross or net — a "150,000 salary" offer can mean quite different things depending on which one is meant, and the difference is entirely explained by tax and other deductions.
Calculate Your Own Numbers
Use our take-home pay calculator to see exactly what a given gross salary works out to after standard income tax deductions.