# Provident Fund Calculator

Source: Searchable (https://searchable.pk/tools/finance/provident-fund-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

Project your provident fund: monthly employee and employer contributions on basic salary, the fund's profit rate and annual raises, to see the lump sum at leaving or retirement year by year.

Version 1.0.0. Inputs: Basic salary (monthly), Your contribution, Employer contribution, Fund profit rate, Annual salary increase, Years, Current PF balance.

## Worked example (default inputs)

- Basic salary (monthly): 100000 PKR
- Your contribution: 8.33 % of basic
- Employer contribution: 8.33 % of basic
- Fund profit rate: 11 % per year
- Annual salary increase: 8 %
- Years: 10 years
- Current PF balance: 0 PKR

**Provident fund after 10 years: Rs 4,933,201**

Contributing 8.33% of a Rs 100,000 basic (Rs 8,330 a month) with a 8.33% employer match, growing 8% a year and earning 11% on the fund, you would have about Rs 4,933,201, of which Rs 1,448,077 is your money, Rs 1,448,077 the employer's and Rs 2,037,047 profit.

### Where it comes from

- Your contributions: Rs 1,448,077
- Employer contributions: Rs 1,448,077
- Profit earned: Rs 2,037,047
- Balance: Rs 4,933,201
- First-year monthly deduction from salary: Rs 8,330

### Year by year

- End of year 1: Rs 212,242
- End of year 2: Rs 466,023
- End of year 3: Rs 767,509
- End of year 4: Rs 1,123,688
- End of year 5: Rs 1,542,472
- End of year 6: Rs 2,032,817
- End of year 7: Rs 2,604,853
- End of year 8: Rs 3,270,029
- End of year 9: Rs 4,041,277
- End of year 10: Rs 4,933,201

## How it is calculated

Each month both contributions (a percentage of **basic** salary) are added to the balance, which then earns the fund's profit rate compounded monthly. Salary rises once a year by the increase you enter. The year-by-year table shows the closing balance.

Under the **Sixth Schedule** of the Income Tax Ordinance, an employer's contribution to a recognised provident fund is exempt from tax up to one-tenth of salary (or Rs 150,000 a year, whichever is less), and the accumulated balance is exempt on payment at retirement or leaving after the qualifying period. Government employees' GP Fund earns a rate notified by the Finance Division each year.

## Frequently asked questions

**What percentage is provident fund in Pakistan?**

Commonly 8.33% or 10% of basic salary from the employee, matched by the employer; the law does not fix a rate for private employers, the fund's trust deed does.

**Is provident fund withdrawal taxable?**

Payment from a recognised provident fund at retirement, or after the service period in the rules, is exempt. Withdrawing the employer share early or from an unrecognised fund can be taxed as salary.

**Can I take a loan from my PF?**

Most fund rules allow a loan or partial withdrawal for house purchase, marriage, medical or education, repayable in instalments.

## Sources

- Provident Funds Act 1925; Income Tax Ordinance 2001 Sixth Schedule Part I (recognised provident funds) (Government of Pakistan / FBR)

How to cite: "Provident Fund Calculator", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/finance/provident-fund-calculator