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Pakistan Gratuity Calculator (2026)

A gratuity calculator Pakistan workers can use — estimate your gratuity under the Standing Orders and provincial labour law: about 30 days of wage for each completed year of service, after one year of employment.

§ Standing Orders / provincial labour law Updated June 2026 ✓ Reviewed for accuracy
SKWritten by Sara Kassab, Senior HR & Payroll Consultant · reviewed by Omar Farouk, Employment-law adviser · Updated 1 July 2026

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These are paid on top of your end-of-service award, not deducted from it. Leave is valued at your daily wage (monthly ÷ 30).

Estimated gratuity · terminated

PKR 600,000

Service counted · 6 yr 0 mo

Line-by-line breakdown
Per year of service (30 days)PKR 600,000
Award if terminatedPKR 600,000

Estimate only. Based on Standing Orders / provincial labour law. Confirm with the official source (Pakistan Code — labour law). Not legal advice.

How it works

How gratuity is calculated in Pakistan

Under the West Pakistan Standing Orders and provincial labour laws, an eligible worker is entitled to gratuity of approximately 30 days’ wage — about one month’s wage — for each completed year of service, payable after one year of employment. Partial years are usually paid pro-rata.

Exact entitlements vary between provinces and between establishments covered by the Standing Orders, the Shops and Establishments Acts, or company policy, so treat this as an estimate and confirm with your employer.

§ Standing Orders / provincial labour law ↗
Accrual rates
Every year of service ≈ 30 days’ wage

Worked examples

Both examples assume a PKR 100,000 monthly wage at roughly one month per year.

After 5 years
5 yrs × ~30 days × (100,000 ÷ 30)500,000
AwardPKR 500,000
After 10 years
10 yrs × ~1 month wage1,000,000
AwardPKR 1,000,000
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Basic vs gross salary. Gratuity is usually based on the last drawn wage. Whether allowances are included depends on the applicable law and your contract.

Frequently asked questions

How is gratuity different from EOBI or a provident fund?
Gratuity is a lump sum based on your length of service, paid by the employer. EOBI is a state pension scheme, and a provident fund is a separate savings arrangement with employer and employee contributions — they can apply alongside gratuity.
Do gratuity rules differ by province?
Yes. Labour matters are largely provincial in Pakistan, so the precise rate, eligibility and coverage can vary between Punjab, Sindh and other provinces and between types of establishment.
Is there a minimum service period for gratuity?
Generally you need at least one completed year of continuous service before gratuity becomes payable, with partial years thereafter usually paid pro-rata.

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Last updated
June 2026 · reflects the law in force at publication.
Methodology
Estimated at ~30 days’ (one month’s) wage per year of service after one year. Provincial rules vary — verify locally.
Disclaimer
An estimate for general guidance only — not legal or financial advice. Confirm with the labour authority.

Which gratuity law applies in Pakistan (2026)?

Pakistan has no single federal "Gratuity Act." Instead, gratuity is governed by the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (Standing Order 12), which entitles a worker to gratuity of about 30 days' wage for each completed year of service. Because labour is a provincial subject since the 18th Amendment, the provinces have their own versions — including the Sindh Terms of Employment (Standing Orders) Act, 2015 and the Khyber Pakhtunkhwa and Punjab standing-orders laws — so the exact rule that applies to you depends on your province and the size of your establishment.

In 2026 the same framework still applies: there is no separate "Gratuity Act 2026," so any reference to a gratuity act means these Standing Orders and provincial statutes. Where an employer instead operates an approved provident fund, gratuity may not be separately payable — check which scheme your contract names.