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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.

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Courts and employers disagree on basic or gross pay; your appointment letter or company scheme decides. Try both with Compare.

Gratuity

Rs 1,080,000

Years counted
9
Service
9 years, 3 months, 24 days

9 years, 3 months, 24 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

  1. Length of service1 July 2017 to 25 October 20269 years, 3 months, 24 days
  2. Years counted9 full years (a part year of 6 months or less is dropped)9
  3. 30 days' wagesRs 120,000 ÷ 30 × 30Rs 120,000
  4. GratuityRs 120,000 × 9 yearsRs 1,080,000
  • For permanent workers in establishments covered by the Standing Orders or provincial labour laws. An employer with an approved provident fund in place of gratuity may not owe it. Government employees have separate pension rules.
  • Whether the wage is basic or gross, and the minimum service, are 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 24 days of service. 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

The minimum service and whether the wage means basic or gross pay differ between employers, provinces and court rulings. 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 and the provincial labour laws, 30 days' last drawn wages for every completed year of service, plus a year for any part over six months. In practice that's one month's wage per year.

Is gratuity on basic or gross salary?

This is disputed. Many employers use basic pay; workers and some court rulings argue for gross wages. Your appointment letter or company scheme usually decides, so try both in Compare.

Who gets gratuity?

Permanent workers in establishments covered by the labour laws, usually after at least a year of service. An employer with an approved provident fund in place of gratuity may not owe it, and government employees follow separate pension rules.

Is 6 months counted as a year?

Only a part year of more than six months counts. Exactly six months is dropped.

Formula and rules last checked 25 October 2026Written and tested by the CalcPenguin teamReport a problem