Calculate end-of-service gratuity for private sector employees in Pakistan based on last drawn salary and years of service.
Total Gratuity
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Tax-Free Portion
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Taxable Portion
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Service Counted
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Frequently Asked Questions
For private sector: Last drawn basic salary × years of service (one month per year). Most companies pay 1 month's last basic salary per completed year.
Gratuity up to PKR 75,000 per year of service is exempt from tax. Amounts above this threshold are subject to FBR income tax.
Gratuity is not universally mandated. Under the Factories Act, establishments with 20+ workers for 5+ years must pay gratuity. However, service industries are not always covered.
Typically 5 completed years of continuous service is required to become eligible for gratuity in Pakistan's private sector.