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.
On your last payslip.
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. Service: 2,829 days = 7 years and 274 days
- 2. The 274 extra days are over six months, so they count as a year: 8 years
- 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.
| Rule | Gratuity |
|---|---|
| Gratuity for each year | 30 days' wages (one month) for each completed year of service |
| Part of a year | Over six months counts as a full year; six months or less doesn't count |
| Balochistan | Two months' wages for each year of service |
| Wage used | Your last monthly wage; most employers use basic salary |
| Provident fund | No gratuity for years when the employer paid into a provident fund at least as much as you |
| Who it covers | Workers 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.
| Years | Rs 100,000 | Rs 150,000 |
|---|---|---|
| 1 year | Rs 100,000 | Rs 150,000 |
| 3 years | Rs 300,000 | Rs 450,000 |
| 5 years | Rs 500,000 | Rs 750,000 |
| 10 years | Rs 1,000,000 | Rs 1,500,000 |
| 15 years | Rs 1,500,000 | Rs 2,250,000 |
| 20 years | Rs 2,000,000 | Rs 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.
Get started for free.
Free for up to 10 people in every product. No credit card, and no sales call to get started.