How to use the salary increment calculator
- 1 Enter your current monthly salary.
- 2 Enter the increment percentage.
- 3 Read your new salary.
- 4 Check the real increase after tax.
Worked example
A Rs 180,000 monthly salary with a 12% increment. The new salary is Rs 201,600. Monthly tax rises from Rs 9,300 to Rs 13,320, so take-home pay goes from Rs 170,700 to Rs 188,280, a real increase of about Rs 17,580 a month.
Is your increment beating inflation?
An increment only raises your living standard if it is higher than inflation. Compare it with the latest consumer price inflation published by the Pakistan Bureau of Statistics.
- Slab effect: only the part of your income above a slab's starting point is taxed at the higher rate, so an increment never reduces take-home pay.
- Arrears: if an increment is backdated, tax on the arrears is usually spread over the remaining months of the tax year.
- Linked benefits: gratuity and provident fund often depend on basic pay, so check whether the increment raises basic or only allowances.
See your full tax with the Salary Tax Calculator, and what the higher salary means for your end-of-service benefit with the Gratuity Calculator.
Features
Tax year 2027 slabs
Uses the salaried slabs from Finance Act 2026.
Before and after tax
Tax and take-home pay before and after the increment.
Real increase
The extra money you actually receive each month.
When to use it
Annual increments
See what a 10% or 15% raise is worth. See your full tax with the Salary Tax Calculator.
Promotions
Compare the take-home effect of a promotion. See the effect on the Gratuity Calculator.
Job offers
Compare a new salary with your current one. See what you could borrow with the Home Loan Calculator.
Negotiation
Ask for a raise with numbers in hand. Save the extra with the Committee Calculator.
Related Tax tasks
Frequently asked questions
Does an increment push me into a higher tax slab?
It can, but only the income above each slab limit is taxed at the higher rate, so you always take home more after a raise.
What are the salaried slabs for 2026-27?
Nil to Rs 600,000; 1% to Rs 1,200,000; Rs 6,000 plus 11% to Rs 2,200,000; Rs 116,000 plus 20% to Rs 3,200,000; Rs 316,000 plus 25% to Rs 4,100,000; Rs 541,000 plus 29% to Rs 5,600,000; Rs 976,000 plus 32% to Rs 7,000,000; and Rs 1,424,000 plus 35% above.
What is a typical increment in Pakistan?
Many private companies give 7% to 15%, and the government announces pay increases in the federal budget each year.
Is my increment taxable from the month it starts?
Yes. Your employer recalculates withholding tax from the month the new salary is paid.
What about arrears?
Arrears paid in a later month are taxed in the year they are received, or can be spread back with an option in the return.
Does this include provident fund?
No. Provident fund deductions reduce take-home pay but are shown separately on payslips.
Why is the tax increase bigger than I expected?
When your salary crosses a slab limit, the extra income is taxed at the new, higher rate, so tax rises faster than salary.
Should I ask for allowances instead?
Most allowances are taxable like salary, so a higher allowance does not usually save tax.
Does an increment affect gratuity and provident fund?
Yes. Higher basic salary usually increases gratuity and provident fund contributions too.
Is the increment the same as an annual bonus?
No. An increment raises your monthly salary from now on, while a bonus is a one-time payment. Both are taxable, but an increment also raises future pay, gratuity and provident fund.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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