Two offers, same salary, different money
Recruiters in Pakistan love quoting the gross monthly figure. It's the biggest number. But two jobs with the same gross can leave you with quite different amounts at the end of the month once bonuses, provident fund and tax are in the picture.
Take the default example above. Both offers pay Rs 300,000 a month. Offer A has no bonus. Offer B adds a Rs 600,000 yearly bonus but takes Rs 15,000 a month for provident fund. After tax, Offer A gives you Rs 265,333 a month. Offer B gives Rs 287,500, and that's before counting the provident fund balance you'd be building up, which is your money too.
What to include for each offer
- Monthly gross salary. Basic pay plus all taxable allowances: house rent, utilities, conveyance, and so on.
- Yearly bonus. Only count what's guaranteed or very likely. A "performance bonus of up to six salaries" might mean two in a normal year.
- Monthly deductions. Your share of provident fund, EOBI, and any health insurance premium the company passes to you.
- Non-taxable benefits. Cash benefits that are exempt from tax and paid on top, like a medical allowance within the exempt limit.
Things a calculator can't weigh for you
Money matters, but it isn't everything. Before you sign, think about:
- Commute. An extra hour a day in Lahore or Karachi traffic is around 20 hours a month. Fuel alone can eat Rs 20,000 or more.
- Health cover. A good family medical policy can be worth more than a bonus, especially with young children or older parents at home.
- Provident fund and gratuity. These build long-term savings that a slightly higher salary elsewhere won't replace.
- Growth. A job that teaches you more, or has a clear path to promotion, often pays off within two or three years.
- Stability. A well-established employer with a steady payroll is worth a lot in an uncertain economy.
Negotiating with the result
If Offer B is your preferred job but pays less in hand, show the recruiter the gap in net terms. "Your offer leaves me Rs 18,000 a month short of my current take-home" is a clearer ask than "I need a bit more". Use the reverse salary calculator to work out the exact gross that would close the gap.
Remote and foreign offers
If one offer is from a foreign company paying you as a freelancer or contractor, it won't be taxed as salary. Payments for IT and IT-enabled services brought into Pakistan through banking channels may fall under a much lower final tax rate. Use the freelancer tax calculator for that offer and compare its result with the salaried one here.
Questions to ask HR before you decide
- Is the bonus guaranteed, or tied to company and personal performance? What was paid last year?
- What does the provident fund look like, and does the company match your contribution?
- Is there gratuity, and after how many years does it vest?
- Which allowances are taxable, and is any part of the pay treated as exempt?
- When is the first salary review, and what were typical increments last year?
Related calculators
- Salary increment calculator, if you'd rather negotiate a raise at your current job.
- Reverse salary calculator, to turn a target take-home into a gross figure.
Frequently asked questions
Should I compare gross or net salary?
Always net. Two offers with the same gross can differ by thousands of rupees a month once bonus, deductions and tax are included.
Is the bonus taxed differently?
No. A bonus is part of salary income and is taxed at the same slab rates. Adding it can push part of your income into a higher slab.
Is provident fund taxed?
Your own contribution comes from taxable salary. The employer's contribution to a recognised fund is generally exempt up to a limit.
Can I compare a salaried job with freelancing?
Yes, but use the freelancer calculator for the freelance income, as it may be taxed under a different regime.
Rates: Income Tax Ordinance 2001 and its schedules as amended by the Finance Act 2026, plus FBR's withholding tax rate card for Tax Year 2027. Results are estimates. Check with FBR or a tax adviser before acting on them.