# Salary Increment Calculator (with Tax Impact)

Source: Searchable (https://searchable.pk/tools/finance/salary-increment-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

Enter your salary and the raise (percent or amount) to see the new gross, how much extra income tax you'll pay under the 2026-27 slabs, and what actually lands in your account.

Version 1.0.0. Inputs: Current monthly salary (gross), Raise given as, Increment, Increment, Inflation to compare against.

## Worked example (default inputs)

- Current monthly salary (gross): 150000 PKR
- Raise given as: pct
- Increment: 10 %
- Increment: 15000 PKR / month
- Inflation to compare against: 4.5 %

**New monthly salary (gross): Rs 165,000**

A 10% raise takes you from Rs 150,000 to Rs 165,000 gross. Income tax rises by Rs 1,650 a month, so take-home goes from Rs 144,000 to Rs 157,350, Rs 13,350 more in hand (9.3%). Against 4.5% inflation the real increase is 5.3%.

### Gross

- Current salary: Rs 150,000
- Increment (10%): Rs 15,000
- New salary: Rs 165,000
- New annual salary: Rs 1,980,000

### Tax and take-home (Tax Year 2027 (FY 2026-27))

- Monthly tax before: Rs 6,000
- Monthly tax after: Rs 7,650
- Extra tax per month: Rs 1,650
- Take-home before → after: Rs 144,000 → Rs 157,350
- Share of the raise taken by tax: 11%
- Marginal tax rate on the raise: 11%

### Real terms

- Raise vs 4.5% inflation: 5.3% real (Above inflation: a genuine increase.)

## How it is calculated

New salary = current × (1 + increment%) or current + amount. The tax impact applies the **Tax Year 2027 (FY 2026-27) salaried slabs** to the annualised salary before and after the raise; the difference is the extra tax, and the marginal rate shows how much of every extra rupee goes to FBR (1% to 35% depending on the slab). The real-terms line deflates the raise by the CPI figure: real = (1 + raise) ÷ (1 + inflation) − 1.

## Frequently asked questions

**How do I calculate increment percentage?**

(New salary − old salary) ÷ old salary × 100. A raise from Rs 150,000 to Rs 165,000 is 10%.

**Why is my take-home increase smaller than the raise?**

Because the extra income is taxed at your marginal slab rate (11% in the Rs 1.2–2.2M band, rising to 35% above Rs 7M a year), and a raise can push part of your income into a higher slab.

**What is a good increment in Pakistan?**

Anything above inflation (about 4–6% in 2026) is a real increase; market moves for skilled roles run 20–40%. Compare the real-terms line here, not the headline percentage.

**Does the increment affect EOBI or provident fund?**

EOBI is fixed on the minimum wage, so no. Provident fund is usually a percentage of basic salary, so it rises with the raise.

## Sources

- Finance Act 2026: First Schedule, Part I, Division I (salaried slabs revised; s.4AB surcharge withdrawn for salaried) (Federal Board of Revenue): https://fbr.gov.pk/

How to cite: "Salary Increment Calculator (with Tax Impact)", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/finance/salary-increment-calculator