Business & Corporate · Tax Year 2026-2027
WWF & WPPF Calculator
Work out Workers' Welfare Fund (2% of taxable profit) and Workers' Profit Participation Fund (5% of net profit) side by side.
Step by step
How this is worked out
Enter profit before tax
The base figure both funds are calculated from.
Confirm WWF applies
Only above the Rs 500,000 total-income threshold.
Confirm WPPF applies
Only for companies meeting the Act's criteria.
See both figures
Calculated independently, then totalled.
Reading the result
Two funds, two different bases
They are usually mentioned together and calculated together, which hides the fact that they are not the same kind of charge and do not run on the same number.
- Workers' Welfare Fund is a levy computed on taxable income, paid to the state to fund worker welfare schemes.
- Workers' Profit Participation Fund is a share of profit set aside for the workers of that establishment, distributed to eligible workers under the scheme rules.
One is a tax-like payment outward. The other is a distribution to your own workforce. Treating WPPF as simply another tax misdescribes what it is.
Sequence changes the figure
The two bases are not independent. Which charge is computed first, and whether one reduces the profit the other is calculated on, changes both numbers. Getting the order wrong produces an answer that is close enough to look right and wrong enough to be queried.
The devolution question is still live
After the Eighteenth Amendment, whether these levies are federal or provincial — and which establishments fall under which — has been litigated repeatedly, with different outcomes in different provinces. A company operating across provinces may face genuinely different positions in each.
Where this stops
This computes both charges side by side from the figures you enter. It does not decide whether your establishment is liable to either, which depends on your workforce size, your sector and where you operate — and in contested cases on which judgments apply to you.
FAQs
WWF & WPPF FAQs
What's the difference between WWF and WPPF?
WWF is 2% of taxable profit paid into a government-administered welfare fund — it functions like a tax. WPPF is 5% of net profit before tax that qualifying companies must set aside for direct distribution to eligible workers — a profit-sharing obligation, not a payment to government.
Who has to pay WWF?
Industrial establishments with total income of Rs 500,000 or more in a tax year pay 2%, under the Workers' Welfare Fund Ordinance 1971 as amended. Note that welfare and labour are devolved subjects since the 18th Amendment: Sindh and Punjab have their own WWF legislation, and the amendments that had extended the federal charge were struck down as money-bill items, so which fund you owe and under which law depends on where your establishment sits. Confirm the applicable law for your province before paying.
Who has to pay WPPF?
Specified companies meeting the applicability criteria of the Companies Profits (Workers' Participation) Act 1968 — not every business. Confirm whether your company qualifies with a tax advisor.
Can a company owe both WWF and WPPF?
Yes — many qualifying companies must maintain a WPPF while also being liable for WWF. They're calculated independently on the same profit figure, as shown above.
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