GenzeeGratuity Calculator
Estimate your end-of-service gratuity from your last drawn salary, years of service, and your employer's gratuity rate.
Estimated gratuity
PKR 560,000
Based on 7 years at PKR 80,000/month, 1 month(s) per year
What gratuity is
Gratuity is a lump-sum end-of-service benefit paid to an employee, typically based on their length of service and last drawn salary. It's separate from provident fund contributions and any final salary owed — a distinct benefit specifically tied to years worked at an organization.
Why the rate is configurable here
Gratuity formulas vary meaningfully by country, and even by specific employer policy within the same country — this calculator deliberately doesn't hard-code one formula. A common approach in Pakistan's private sector is roughly one month's last-drawn salary per completed year of service, but some schemes use a fraction of a month (like 15 or 26 days) per year instead. Check your specific employment contract, company policy, or applicable labor law for the exact rate that applies to you.
What "last drawn salary" typically means
Most gratuity schemes calculate based on basic salary at the time of leaving, not total compensation including allowances and bonuses — though this also varies by scheme. Confirm with your employer's HR policy or contract exactly which salary component your gratuity calculation is based on before relying on an estimate.
Frequently asked questions
Is gratuity the same as provident fund?
No — provident fund is typically a savings scheme with contributions from both employee and employer over time, while gratuity is a separate lump-sum benefit based on length of service, often funded entirely by the employer.
Do I need to complete a minimum service period to qualify?
Many gratuity schemes require a minimum period of continuous service (commonly a set number of years) before any gratuity becomes payable. Check your specific employment terms or applicable labor law for the exact threshold.
Is gratuity taxable?
Tax treatment of gratuity varies by country and sometimes by amount, with many jurisdictions offering at least a partial exemption. Confirm the specific tax treatment that applies to your situation with a tax advisor or your country's tax authority.