How the calculation works on PKR 1,00,000 / month
100,000 a month feels like a milestone, and it is, but it also sits right on top of a tax cliff that I think everyone at this level should understand. It's 1,200,000 a year, exactly the top of the 1% slab. The 600,000 above the exemption is taxed at 1%, so 6,000 for the year, or 500 a month. The catch is what comes next: the very next rupee you earn is taxed at 11%, not 1%. You're standing right at the edge of an elevenfold jump.
That works out to roughly Rs 500 a month deducted from your gross, leaving you with Rs 99,500 take-home. Your effective tax rate is 0.50%, even though your marginal rate is 1%.
What changes if you're not salaried?
This is the income where being salaried starts to actually help you. If you earned the same 100,000 a month through business or freelancing, you'd face a steeper rate on this slab than the salaried 1%. So if your income can legitimately be treated as salary, this is roughly where that choice starts to matter to your pocket.