Biswashree Roy
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Gratuity Calculator Pakistan 2026
Looking for a gratuity calculator Pakistan workers and HR teams can trust? This one follows the West Pakistan Standing Orders Ordinance 1968 and the provincial Acts for Sindh, Khyber Pakhtunkhwa and Balochistan.
- 30 days of wages per year
- Part year over 6 months rounded up
- Provident fund rule explained
Calculate gratuity
Pick a country, enter your salary and dates of service.
PKR
Wages including regular allowances. Some employers use basic only, so check your contract.Your result is ready
Share a few details with your work email to see your result. We will also send you useful HR resources.
How gratuity is calculated in Pakistan: pay 30 days (one month) of last drawn wages for every completed year of service, counting any part year of more than six months as a full year. Gratuity applies to workmen with more than six months of service and is not payable where the employer runs a qualifying provident fund.
Pakistan gratuity formula
Gratuity = Last drawn monthly wage × Years of service
Worked example
Monthly wage of Rs 120,000 and 7 years 8 months of service. The 8 months round up, so service counts as 8 years: 120,000 × 8 = Rs 960,000.
Gratuity rules by province
| Province | Law | Establishments covered |
|---|---|---|
| Islamabad and Punjab | Standing Orders Ordinance 1968 | 20+ workers (commercial), 50+ (industrial) |
| Sindh | Sindh Terms of Employment (Standing Orders) Act 2015 | 10+ commercial, 20+ industrial |
| Khyber Pakhtunkhwa | KP Standing Orders Act 2013 | 10+ commercial, 20+ industrial |
| Balochistan | Balochistan Standing Orders Act | 10+ workers |
Gratuity and provident fund
Where an employer runs a provident fund with employer contributions at least equal to the worker’s, gratuity is not payable. In Sindh and Khyber Pakhtunkhwa, the provident fund payout cannot be lower than the gratuity would have been. Gratuity is forfeited on dismissal for misconduct.
Wages normally include regular allowances but exclude bonuses. Some employers calculate on basic salary only, so check your appointment letter or company policy.
How to use the Pakistan gratuity calculator
- Enter your last drawn monthly wage. Include regular allowances unless your contract says basic only.
- Enter your joining date and last working day. The calculator rounds up a part year of more than six months.
- Click Calculate. You see the gratuity and the years counted.
Example where the part year does not round up
Monthly wage of Rs 80,000 and 5 years 4 months of service. The 4 months are less than six, so service counts as 5 years: 80,000 × 5 = Rs 400,000. The gratuity calculator Pakistan workers use applies this rounding for you.
The gratuity formula Pakistan employers use is the same in every province: one month of last drawn wages for each year of service. Gratuity calculation in Pakistan only differs on which establishments are covered and whether a provident fund replaces gratuity, as explained above.
Is gratuity taxed in Pakistan?
Tax treatment depends on whether gratuity is paid from an approved gratuity fund and on the amount. Check the current exemption limits with the Federal Board of Revenue or a tax adviser before relying on a net figure.
Sources
This gratuity calculator Pakistan workers use is based on the following sources, reviewed in October 2026:
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Frequently asked questions
Is this Pakistan gratuity calculator free?
Yes. The calculator is free. You share your name, work email and phone number once and can then calculate as many times as you like.
How is gratuity calculated in Pakistan?
30 days of last drawn wages for every completed year of service, with any part year of more than six months counted as a full year.
Who is eligible for gratuity in Pakistan?
Workmen with more than six months of service in establishments covered by the Standing Orders laws, unless the employer runs a qualifying provident fund.
Is gratuity calculated on basic or gross salary in Pakistan?
The law uses wages including regular allowances, but many employers use basic salary only. Check your contract or company policy.
Is gratuity paid along with provident fund?
Usually not. Gratuity is not payable where the employer contributes to a provident fund at least as much as the worker.