Gratuity Calculator Pakistan (30 Days Rule)

Your Gratuity Calculate

Last drawn monthly basic salary (PKR)

Completed years of service

Use decimals for months (7 years 8 months ≈ 7.7). A part-year of more than 6 months counts as a full year.

Province / jurisdiction

Calculation method

Different employers use different conventions for "30 days' wages." See below for why these give different numbers.

Please enter a valid basic salary and years of service.

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Enter your basic salary and years of service above.

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How Is Gratuity Calculated in Pakistan?

In Pakistan, gratuity is 30 days' wages for every completed year of service, based on your last drawn salary, and any part-year over six months counts as a full year. Balochistan pays two months' wages per year. So 8 years on a Rs 80,000 basic salary gives about Rs 640,000.

How to Use the Gratuity Calculator

Enter your last drawn monthly basic salary.
Enter your years of service, using decimals for months (7 years 8 months ≈ 7.7).
Choose your province. Balochistan uses 60 days per year; elsewhere it's 30 days.
Pick the method your employer uses (see below). The calculator also shows the other method's result for comparison.

Gratuity Formula in Pakistan

The law says "30 days' wages", and employers turn that into money in one of two ways:

Method	Formula	Used when
Simple (1 month = 30 days' wages)	Last basic salary × completed years	Most monthly-salaried staff
26 working days	(Last basic salary ÷ 26) × 30 × completed years	Employers that count a month as 26 working days; about 15% higher

Neither is wrong. Check your appointment letter or company gratuity policy to see which one applies to you.

Worked Example: Rs 80,000 Basic, 7 Years 8 Months

7 years 8 months → the 8 extra months are more than six, so it counts as 8 completed years.
Simple method: 80,000 × 8 = Rs 640,000.
26-day method: 80,000 ÷ 26 × 30 × 8 = Rs 738,462.
In Balochistan (two months' wages per year) the simple method gives 80,000 × 2 × 8 = Rs 1,280,000.

Who Is Eligible for Gratuity?

Permanent workers covered by the Standing Orders law, usually after at least 12 months of continuous service.
Payable when you resign, retire, or your employer ends your service for any reason other than proven misconduct.
An employer can run a provident fund instead of gratuity if it matches your contribution. You're then entitled to whichever is more beneficial, so check your provident fund balance too.
There is no 5-year minimum in Pakistani law. That rule comes from India's gratuity act and is often copied by mistake.

Provincial laws (Sindh, Punjab, Khyber Pakhtunkhwa, Balochistan) are based on the 1968 Standing Orders Ordinance, with different coverage thresholds, and Balochistan pays double. Government employees follow separate pension and commutation rules that this calculator doesn't cover.

Common Mistakes

Using gross salary instead of basic. Most policies calculate gratuity on last drawn basic salary.
Dropping the part-year. 5 years 7 months counts as 6 years.
Assuming tax-free. Gratuity can be taxable above certain limits, depending on whether it comes from an approved gratuity fund. This tool shows the gross amount.

Leaving a job? Work out your last month's pay with the salary calculator for Pakistan, check unpaid overtime, and see the tax on your final settlement with the income tax calculator.

How the Gratuity Calculator Saves You Time

Gratuity depends on completed years, the six-month rounding rule and your province. The calculator applies them for you, so you get a figure in seconds instead of reading the law.

Frequently Asked Questions

How is gratuity calculated in Pakistan?

Gratuity equals 30 days' wages for each completed year of service, based on your last drawn basic salary. A part-year of more than six months counts as a full year. Most employers use last basic salary × completed years; some use salary ÷ 26 × 30 × years, which gives about 15% more.

How much gratuity will I get after 5 years in Pakistan?

With the simple method, five years of gratuity equals five months of your last basic salary. On a Rs 60,000 basic that is Rs 300,000, or about Rs 346,154 with the 26-day method. In Balochistan, which pays two months per year, it would be Rs 600,000 using the simple method.

Is gratuity payable if I resign before 5 years?

Yes, if you are a permanent worker covered by the Standing Orders law. Pakistani law has no five-year minimum; gratuity is counted for every completed year, usually after at least 12 months of continuous service. The five-year rule belongs to India's gratuity law, not Pakistan's.

What is the gratuity formula using 26 days?

The 26-day formula is: last basic salary ÷ 26 × 30 × completed years of service. It treats a month as 26 working days, so the daily wage is higher and the result is about 15% more than simply multiplying monthly salary by years. Your company policy decides which formula applies.

Do I get both gratuity and provident fund?

Not always. The law lets an employer run a provident fund instead of gratuity if the employer matches your contribution, in which case you are entitled to whichever is more beneficial. Some employers still provide both, so check your appointment letter or HR policy.

Is gratuity taxable in Pakistan?

It can be. Gratuity from an approved gratuity fund is treated differently from gratuity paid directly by an employer, and amounts above the exempt limits are taxed as salary income. The rules depend on the fund and the year, so confirm with your employer's payroll team or FBR.

Last updated: September 2026

🧾 Gratuity Calculator Pakistan