Salary & Income · End of service
Gratuity & Provident Fund Calculator
Work out your end-of-service gratuity and the maturity value of your provident fund, from your wage and years of service.
Provident fund (optional)
Step by step
How this is worked out
Enter your last drawn wage
Usually basic salary — check your scheme's definition.
Enter your years of service
Completed years, including part-years as decimals.
Confirm the gratuity factor
30 days per year is the common default.
Add provident fund details
Contribution percentages and the profit rate your fund credits.
Reading the result
Two schemes that are often confused
Gratuity is paid by the employer at the end of service, out of the employer's own funds, usually as a multiple of final wage and years served. A provident fund is a pot built up during service from contributions by you and your employer, which grows and is paid out on exit.
An employer may run one, both, or neither depending on the terms of service and the law applying to that establishment. Assuming you have both because a colleague elsewhere does is how people plan around money that was never coming.
Recognised and unrecognised funds are taxed differently
Whether a provident fund is recognised for tax purposes changes the treatment of the employer's contribution, the accumulated return and the final payment. It is a technical status the employer holds, not something visible on your payslip, and it is worth asking about before retirement rather than after the payment arrives.
Get the service record confirmed early
Both calculations turn on years of service and final wage, and both are settled at the moment you are least able to argue — after you have left. Breaks in service, periods on contract before confirmation, and transfers between group companies are the usual points of dispute. Ask for a written service certificate while you are still employed.
Where this stops
This works from the wage, rate and years you enter. Your entitlement comes from your terms of service and the statute applying to your employer, and those govern over any general formula.
FAQs
Gratuity & provident fund FAQs
How is gratuity calculated in Pakistan?
The common formula is last drawn wage × completed years of service, i.e. roughly one month's wage per year served. Some schemes and contracts use a different days-per-year factor, so the factor is editable above — check your employment contract or your company's gratuity scheme rules.
Who is entitled to gratuity?
Entitlement depends on your province's Standing Orders / Shops and Establishments legislation and on your contract — typically employees completing a minimum qualifying period of continuous service. Employers running an approved gratuity fund or a provident fund in lieu may have different arrangements. Confirm your specific entitlement with your HR department.
What are typical provident fund contribution rates?
A common arrangement is an equal employee and employer contribution of 8.33% of basic salary each, but rates vary widely by employer — both are editable above. The annual profit rate credited to the fund also varies each year, so enter the rate your fund actually credits.
Is gratuity or provident fund taxable?
Gratuity is exempt under clause (13) of Part I of the Second Schedule up to a limit that depends on the scheme: fully exempt from the Government, a statutory body or an approved gratuity fund; up to Rs 300,000 under an employer scheme approved by FBR; otherwise the lesser of half the amount or Rs 75,000. The exemption is for resident employees and does not cover a second gratuity. Accumulated balances from a recognised provident fund are exempt under clause (23), subject to the Sixth Schedule limits on the employer contribution and interest credited.
Related tools
Checking your monthly take-home too?
Break gross pay into salary, tax and deductions.
Open Net Salary & Payslip Calculator