1. What is ADP Salary Calculator?

The ADP Salary Calculator helps employees in Pakistan estimate their net take-home pay after deducting income tax and other applicable taxes for the year 2025.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Pay \) — Annual salary before deductions
• \( Income\ Tax \) — Calculated based on Pakistan's 2025 tax brackets
• \( Other\ Taxes \) — Includes provincial taxes and other deductions

3. Pakistan Tax Structure 2025

Tax Brackets:

• Up to PKR 600,000: 0%
• PKR 600,001 - 1,200,000: 5%
• PKR 1,200,001 - 2,400,000: 15%
• PKR 2,400,001 - 4,800,000: 25%
• Above PKR 4,800,000: 35%

4. Using the Calculator

Instructions: Enter your annual gross salary in PKR and select tax year 2025. The calculator will compute your income tax, other taxes, and net pay.

5. Frequently Asked Questions (FAQ)

Q1: What's included in "Other Taxes"?
A: This may include provincial taxes, professional tax, or other mandatory deductions.

Q2: Are tax credits considered?
A: This calculator provides basic estimates. Actual tax may vary based on credits and deductions.

Q3: Is this calculator official?
A: This is an estimation tool. For official calculations, consult FBR or your employer.

Q4: How often are tax brackets updated?
A: Tax brackets are typically revised in the annual budget (June each year).

Q5: What if I have multiple income sources?
A: This calculator is for single salary estimation. Consult a tax advisor for complex situations.