Pakistan Gratuity Calculator
Gratuity for permanent workers in Pakistan: 30 days' wages for each completed year of service, with a part year over six months counted as a full year.
The law's definition of wages points to gross cash pay; many employers and company schemes use basic pay. Try both with Compare.
Gratuity
Rs 1,080,000
- Years counted
- 9
- Service
- 9 years, 4 months, 12 days
9 years, 4 months, 12 days of service counts as 9 years. At 30 days' wages a year on Rs 120,000 a month, the gratuity is Rs 1,080,000.
How it's worked out
- Length of service
1 July 2017 to 12 November 20269 years, 4 months, 12 days - Years counted
9 full years (a part year of 6 months or less is dropped)9 - 30 days' wages
Rs 120,000 ÷ 30 × 30Rs 120,000 - Gratuity
Rs 120,000 × 9 yearsRs 1,080,000
- Due when you resign or your employment ends for any reason other than misconduct, in establishments covered by the Standing Orders (20 or more workers; 10 or more in Sindh). Government employees have separate pension rules.
- An employer that runs a provident fund to which it contributes at least as much as the worker doesn't owe gratuity for the years the fund existed. In Sindh, the fund payout can't be less than the gratuity.
- Whether the wage is basic or gross is disputed. Your appointment letter, company policy or a labour lawyer settles your case.
How gratuity is worked out
Gratuity = (last monthly wage ÷ 30) × 30 days × years counted
Years counted are the completed years of service, plus one when the remaining part year is more than six months.
Worked example
Someone who worked from 1 July 2017 to 25 October 2026 has 9 years, 3 months and 25 days of service, counting the last day. The part year is under six months, so 9 years count. On a last wage of Rs 120,000 a month, the gratuity is Rs 1,080,000.
Points to check
Whether the wage means basic or gross pay differs between employers and court rulings, and some company schemes set a minimum service of 1 or 5 years. Treat this as an estimate and check your contract, or ask a labour lawyer for a dispute.
Questions people ask
How is gratuity calculated in Pakistan?
Under the Standing Orders, 30 days' last drawn wages for every completed year of service, plus a year for any part over six months. Sindh's law says one month's wages, which comes to the same for a monthly-paid worker.
Is gratuity on basic or gross salary?
The law uses 'wages' as defined in the Payment of Wages Act: all cash pay except the value of free housing or amenities, provident-fund or pension contributions, travel allowance and gratuity, which points to gross cash pay. Many employers and company schemes use basic pay, and disputes go to the Labour Court; try both in Compare.
Who gets gratuity?
Workers in industrial and commercial establishments covered by the Standing Orders (20 or more workers; 10 or more in Sindh) who resign or whose employment ends for any reason other than misconduct. Government employees follow pension rules. An employer that runs a provident fund to which it contributes at least as much as the worker doesn't owe gratuity for the years the fund existed (in Sindh, the fund payout can't be less than the gratuity).
Is 6 months counted as a year?
Only a part year of more than six months counts. Exactly six months is dropped.
Is there a minimum service for gratuity?
The Standing Orders set none beyond the 6-month rule: a part year of more than six months counts as a year, so 6 months and 1 day of service earns one year's gratuity. Some employers and company schemes ask for 1 or 5 years; pick that option if your scheme does.
About this calculator
Formula and rules last checked 12 November 2026Written and tested by the CalculatorDex teamReport a problem
Sources: Sindh Terms of Employment (Standing Orders) Act 2015, Schedule SO 16(6) · Industrial and Commercial Employment (Standing Orders) Ordinance 1968, SO 12(6) (ILO NATLEX record)