Gratuity calculator
Two formulas are in common use. Your appointment letter, provident fund, or provincial standing orders decide which one applies. This page does not replace a labour officer.
Which formula?
30 days per year. Last monthly wages ÷ 26 × 30 × completed years. Labour practice often uses 26 because that is a common count of working days. This is the formula people mean when they cite the old Standing Orders rule for workers who do not have the qualifying provident fund.
One month per year. Last monthly wages × completed years. Some appointment letters and companies use this simpler line. It is a smaller number than the 30-day formula.
Punjab, Sindh, KP and Balochistan have updated labour statutes. A factory worker, a shop employee and a federal civil servant are not under one rule. Gratuity can also be zero when a provident fund replaces it. Read the letter, then ask the labour department if the letter is silent.
Questions
How is gratuity calculated in Pakistan?
A common statutory-style formula is 30 days of wages for every completed year of service, worked out as last monthly wages divided by 26, times 30, times completed years. Some employers instead pay one full month of last wages per year. Your letter of appointment decides.
Do I get gratuity if I have a provident fund?
Often no. Where a provident fund of the required type applies, gratuity under the old standing-orders rule may not be due as well. Read the scheme and your province's current law.
Does less than one year count?
Many rules start only after one completed year. This calculator still shows the arithmetic, and it labels service under one year so you do not assume a payout.
More on Work For Best
Figures follow public notifications as reviewed on 11 November 2026. A later gazette, a provincial notification, or your appointment letter overrides this page. These tools are not legal, tax, or financial advice.