Payslip Generator

What belongs on a Pakistan or US payslip

A payslip is the employee's record of how their pay was calculated. It may support a bank, tenancy, immigration, tax, or employment query. A payslip that shows only "salary" and a net figure fails those uses in either Pakistan or the United States.

A properly drafted payslip separates earnings from deductions and shows the arithmetic in between.

• Employer name, address and logo, plus the pay period and date of payment.
• Employee name, designation, department, employee number, CNIC and date of joining.
• Earnings side: basic salary, house rent allowance, conveyance allowance, medical allowance and any other allowance, each on its own line.
• Deductions side: income tax withheld, provident fund (employee share), EOBI contribution, loan or advance recovery, and any authorised deduction such as unpaid leave.
• Gross earnings, total deductions, and net pay — with net pay also written in words on documents intended for external use.
• Attendance data where pay depends on it: days worked, leave taken, leave balance, overtime hours.
• Bank name and account or the mode of payment, and signature blocks for the preparer and the employee.

US payslips: federal, FICA, state, and benefit lines

A US pay statement normally separates federal income-tax withholding from Social Security and Medicare. State and local withholding, retirement contributions, health-plan deductions, garnishments, and other authorised deductions should each have their own line. Employers may also need to show hours, rate, overtime, year-to-date totals, and accrued leave under state law.

This generator estimates 2026 federal income tax by annualising the monthly wage and applying the selected filing status and standard deduction. It also estimates employee Social Security, Medicare, Additional Medicare Tax where applicable, and listed state income tax. It does not reproduce Form W-4 adjustments, local tax, employer FICA, unemployment tax, or every state pay-statement rule.

• Use USD and enter the employee’s federal filing status and work state.
• Keep Social Security and Medicare on separate deduction lines rather than combining them with federal income tax.
• Treat 401(k), HSA, insurance, and other benefits according to their actual pre-tax or post-tax payroll treatment.
• Track year-to-date wages because the Social Security wage base and Additional Medicare threshold apply annually.
• Check the employee’s work-state and locality rules for required statement details and withholding.

Allowances: how HR usually structures them

Most Pakistani employers split a gross package into a basic salary plus allowances rather than paying one undifferentiated amount. Basic salary is the anchor: gratuity, provident fund contribution, EOBI and often leave encashment are all computed as a percentage of basic, so the split has real cost consequences. A common structure is basic at around 60% of gross with house rent at 30% to 45% of basic and conveyance and medical making up the rest.

Two points are frequently mishandled. First, a cash medical allowance is exempt only up to 10% of basic salary, whereas actual medical treatment or reimbursement provided under the terms of employment has its own, more generous treatment — so the label on the line matters. Second, an allowance is not automatically tax-free just because it is called an allowance; cash allowances are generally part of taxable salary.

Deductions: provident fund, EOBI, loans and tax

Provident fund is typically a matching contribution — the employee's share is deducted from salary and appears on the payslip, while the employer's share is a cost to the company and is not a deduction from the employee's pay. Showing the employer share as a deduction is a common error that makes an employee believe their salary is lower than it is.

EOBI contributions are calculated on the prescribed wage basis, with a small employee share and a larger employer share. Loan and advance recoveries should show the instalment, and ideally the remaining balance, so the employee can see the schedule. Income tax withheld is the monthly portion of the employee's estimated annual liability under the salaried slabs.

• Never deduct anything not authorised by law, the employment contract, or the employee's written consent.
• Keep the deduction narrative specific: "loan instalment 4 of 12" rather than "other deduction".
• Issue a tax deduction certificate annually so the employee can file their return.
• Retain payroll records; they are the primary evidence in a labour or tax dispute.

A worked payslip

Take a gross monthly package of PKR 150,000 structured as basic 90,000, house rent 40,500, conveyance 12,000 and medical 7,500. Annual gross is PKR 1,800,000, which falls in the third salaried slab, giving annual tax of 6,000 + 11% of (1,800,000 − 1,200,000) = PKR 72,000, or PKR 6,000 a month withheld.

Add an employee provident fund contribution of 8.33% of basic (PKR 7,497), an EOBI employee share, and a loan instalment of PKR 5,000. Total deductions come to roughly PKR 18,600, giving net pay of about PKR 131,400. The payslip should show every one of those lines — not simply PKR 131,400 against the word "salary".

Legal and practical obligations

Provincial labour laws and the standing orders applicable to industrial and commercial establishments require employers to pay wages within a prescribed period after the wage period ends, to maintain wage records, and to avoid unauthorised deductions. Minimum wage is notified province by province and revised most years; payroll should be checked against the current notification each time it changes.

Beyond compliance, a clear payslip reduces disputes. Most payroll grievances we see are not about the amount but about the absence of an explanation — an employee who can read their own deductions rarely escalates.

Using this payslip generator

Enter your company details once, then the employee's information. Add each allowance on the earnings side and each deduction on the deduction side, using the custom rows for anything specific to your organisation. Income tax is calculated for you from the current salaried slabs. Upload your logo to brand the document, preview it, then print or save as PDF — the print output strips the site navigation so you get a clean payslip.

All processing happens in your browser: employee names, salaries and deductions are never sent to us. That also means nothing is stored for you, so save each payslip as you generate it.

Frequently asked questions