How this is calculated
Why your take-home raise is smaller than your gross raise
FBR's income tax uses progressive slabs — the rate rises in steps as your annualized income crosses fixed thresholds. A raise can push your annual equivalent into a higher slab, meaning a slightly larger share is withheld. It's not a penalty for earning more — you still come out ahead overall — but a 10% gross raise rarely turns into a full 10% more in your bank account once tax is applied.
Assumptions & limits
EOBI doesn't change with a raise at all — it's based on the federal minimum wage, not your salary, so it's identical before and after. Assumes no additional tax credits applied (Zakat, pension contributions, tuition fees). Figures are for guidance only, not tax advice.