What is PF contribution calculation formula in Pakistan?

PF contribution = 10% of basic salary (employee) + 10% of basic salary (employer). Total monthly deposit = 20% of basic salary into the PF trust.

How to calculate provident fund in Pakistan?

Multiply your basic salary by 10% to get your monthly PF deduction. Your employer adds an equal amount. Both go into your PF account every month.

Is PF deducted on gross salary or basic salary?

In Pakistan, your Provident Fund is always deducted from your basic salary portion, never the gross salary. Allowances like travel, medical, and housing are completely excluded from the PF calculation.

Can I withdraw my Provident Fund before retirement?

Yes, most recognized provident funds allow partial withdrawals or loans against your balance for specific emergencies, such as purchasing/constructing a house, major medical illnesses, or children's higher education. However, rules vary per organization's Trust Deed.

Is my Provident Fund balance taxable in Pakistan?

If your company operates a Recognized Provident Fund (registered with the FBR/Commissioner of Inland Revenue), the lump sum payout you receive at retirement or resignation is generally 100% tax-free. Unrecognized funds may incur tax on the employer's portion and accrued interest.

What happens to my PF if I change jobs?

When you resign, you are entitled to receive your entire accumulated balance, including both your contributions, the employer's matching contributions, and accrued interest, provided you have completed the minimum vesting period laid out by your HR policy (often 1-3 years).

Provident Fund (PF) Calculator Pakistan

Estimate your provident fund balance over time, including your share, employer match and compounding interest.

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PakCalc — Free Financial Calculators for Pakistan (Updated 2026)