1. What is the AIA Salary Calculator?

The AIA Salary Calculator estimates net salary in Pakistan for 2023-24 by calculating deductions from gross pay including income tax and other applicable taxes.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Gross\ Pay \) — Total salary before deductions (PKR/year)
• \( Income\ Tax \) — Tax amount based on 2023-24 Pakistan tax brackets (PKR)
• \( Other\ Taxes \) — Any additional taxes or deductions (PKR)

Explanation: The calculator provides a straightforward way to estimate take-home pay after mandatory deductions.

3. Importance of Net Pay Calculation

Details: Understanding net pay helps in financial planning, budgeting, and ensuring proper tax compliance in Pakistan.

4. Using the Calculator

Tips: Enter gross annual salary in PKR, estimated income tax based on current tax brackets, and any other applicable taxes. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the current income tax brackets in Pakistan?
A: For 2023-24, Pakistan has progressive tax rates starting from 0% up to 35% depending on income level.

Q2: What counts as "Other Taxes"?
A: This may include provincial taxes, professional tax, or any other mandatory deductions from salary.

Q3: Is this calculator official?
A: This is a general estimation tool. For official calculations, consult with the tax authorities or your employer's HR department.

Q4: Does this include social security contributions?
A: No, unless you include them in the "Other Taxes" field. The calculator is designed for flexible inputs.

Q5: How often are tax brackets updated?
A: Tax brackets are typically revised annually in the federal budget, usually announced in June.