Gratuity Calculator Pakistan 2026 – Private Sector (30 Days per Year)
Standing Orders 1968 · 30 days’ wages per year of service
Gratuity Calculator Pakistan (Private Sector)
Work out the gratuity due when you leave a job. Under the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968, a worker gets at least 30 days’ wages for every completed year of service, and a part-year of more than six months counts as a full year. Many companies pay more under their own policy, so you can change the days per year.
Use basic or gross, as your contract or policy says
Gratuity rules in Pakistan, in brief
- Who is covered: workers in industrial and commercial establishments under the Standing Orders (and the provincial laws that replaced them, such as the Punjab and Sindh terms of employment Acts). Rules for government servants are different.
- Formula: daily wage × days per year × years of service. Daily wage = last monthly wage ÷ 30 (or ÷ 26 if your policy uses working days).
- Part-years: service of more than six months in the final year counts as a full year.
- Provident fund instead: an employer with a contributory provident fund that meets the legal conditions may not have to pay gratuity as well. Check your appointment letter.
- Tax: gratuity from an approved gratuity fund is generally exempt; other gratuity may be partly taxable. Check with your tax advisor or FBR.
- Not paid? You can complain to the labour department or file a claim before the Labour Court.
This is general information, not legal advice. Your employment contract, CBA or company policy may give you more.