Free tool

Pakistan gratuity calculator

Enter your salary and service dates to see your gratuity under your province's Standing Orders law. Free, with no sign-up.

Each province has its own Standing Orders law. Balochistan pays two months a year.

Rs

On your last payslip.

Rs

House rent, utilities and other fixed allowances.

Gratuity worked out on

Most employers use basic salary. Some contracts use the full wage, so check yours.

How it's worked out

  1. 1. Service: 2,829 days = 7 years and 274 days
  2. 2. The 274 extra days are over six months, so they count as a year: 8 years
  3. 3. 8 years × one month's wage of Rs 100,000 = Rs 800,000

In short

In Pakistan, gratuity is one month's wages for each year of service under the Standing Orders laws, and two months in Balochistan. A part year over six months counts as a full year. It isn't required for years covered by a provident fund.

Updated

Per year of service
One month's wages (two in Balochistan)
Part years
Over six months counts as a year
Provident fund
Replaces gratuity when the employer matches
Law
Standing Orders laws, by province
Built into
Leagrow Payroll

How gratuity is calculated in Pakistan.

The minimum gratuity under the Standing Orders laws, which cover industrial and commercial employers above a minimum number of workers.

Pakistan gratuity rules
RuleGratuity
Gratuity for each year30 days' wages (one month) for each completed year of service
Part of a yearOver six months counts as a full year; six months or less doesn't count
BalochistanTwo months' wages for each year of service
Wage usedYour last monthly wage; most employers use basic salary
Provident fundNo gratuity for years when the employer paid into a provident fund at least as much as you
Who it coversWorkers under the Standing Orders laws in industrial and commercial establishments

Sources: Standing Orders Ordinance 1968; Sindh Terms of Employment (Standing Orders) Act 2015; KP Standing Orders Act 2013; Balochistan Standing Orders Act 2021. Checked .

Gratuity at common salaries.

One month's wage a year, for full years of service. In Balochistan, double these amounts.

Pakistan gratuity by years of service and monthly wage
YearsRs 100,000Rs 150,000
1 yearRs 100,000Rs 150,000
3 yearsRs 300,000Rs 450,000
5 yearsRs 500,000Rs 750,000
10 yearsRs 1,000,000Rs 1,500,000
15 yearsRs 1,500,000Rs 2,250,000
20 yearsRs 2,000,000Rs 3,000,000

Good to know about gratuity in Pakistan.

Resigning still counts

Gratuity is due when you resign or your employer ends your job, unless you're dismissed for misconduct.

Gratuity or provident fund

Many companies run a provident fund instead. If the employer pays in at least as much as you, gratuity isn't due for those years.

Each province has its own law

Punjab and Islamabad follow the 1968 Ordinance. Sindh, KP and Balochistan have their own Standing Orders Acts.

Your contract can give more

The law sets the minimum. Some employers pay gratuity on gross salary, or more than one month a year.

Final settlements for Pakistan, done for you.

Leagrow Payroll works out gratuity and everything else a leaver is owed, and pays it in PKR through the pay run. Free for up to 10 people.

  • Gratuity worked out from last basic salary and service
  • Provident fund instead of gratuity, per person
  • Leave encashment, notice pay and loans in the same settlement
  • Income tax, EOBI and social security in every pay run

Questions, answered.

How is gratuity calculated in Pakistan?

One month's wages for each completed year of service, under the Standing Orders laws. A part year over six months counts as a full year. Balochistan pays two months' wages a year.

How much gratuity for 5 years and 7 months on Rs 100,000?

Rs 600,000. Five years and about seven months counts as 6 years, because the part year is over six months. 6 × Rs 100,000 = Rs 600,000.

Is gratuity calculated on basic or gross salary in Pakistan?

The law says wages, and most employers use the last basic salary. Some contracts use the gross salary, which pays more. Check your contract or your company's gratuity policy.

Do I get gratuity if I resign?

Yes. Under the Standing Orders laws, gratuity is due whether you resign or your employer ends your job, as long as it isn't a dismissal for misconduct.

Is gratuity paid if my company has a provident fund?

Not by law, for the years the employer paid into the fund at least as much as you did. Your company can still choose to pay both.

How much gratuity in Balochistan?

Two months' wages for each year of service, under the Balochistan Standing Orders Act 2021. That's double the rest of Pakistan.

Is this calculator official?

No. It's a free estimate from Leagrow, using the Standing Orders laws, checked on 26 October 2026. Your contract may give more. For a dispute, ask your provincial labour department.

Can Leagrow work out gratuity for my team?

Yes. Final settlement in Leagrow Payroll works out gratuity from each person's last basic salary and service, skips it for people in a provident fund, and pays it through the pay run. It's free for up to 10 people, then $1 per person per month.

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