Gratuity Calculator
Calculate gratuity entitlement in Pakistan — 30 days of last drawn salary per completed year.
About the Gratuity Calculator
The Gratuity Calculator is a free, private tool that runs entirely in your browser — your inputs never leave your device, and the answer appears the instant you enter them.
Your salary number on the offer letter is rarely the number that reaches your bank account. This Gratuity Calculator bridges the gap by showing how gross pay converts to net take-home after Pakistan income tax and, where relevant, other deductions. Knowing this before you accept an offer or negotiate a raise puts you in control.
The calculation annualises your salary, applies the progressive FY tax slabs, then divides back to monthly figures — the same method employers use to withhold salary tax each month. This means the monthly deduction shown matches what you should see on your payslip.
Salary questions are among the most common money queries in Pakistan — how much tax is deducted from a Rs 150,000 salary, what a raise actually adds to take-home, and how to compare two job offers fairly. This tool answers those questions with transparent, editable inputs and instant results.
Use it before your next salary review: run your current salary, then the proposed figure, and compare the take-home difference rather than the gross difference. The tax system is progressive, so a 20% gross raise can translate to a different percentage in net terms — and this calculator shows you exactly what.
The Gratuity Calculator is one of a large, connected suite of Pakistani calculators on GuruAlpha, so if a related figure comes up next, the tool for it is a click away.
How to use the salary calculator
- 1
Enter your gross salary — monthly or annual, matching the field label.
- 2
Select your filer status so the correct tax treatment is applied.
- 3
Add any other deductions (EOBI, provident fund) if the tool includes them.
- 4
Read your take-home pay, monthly tax and effective tax rate, updated live.
Frequently Asked Questions
How is gratuity calculated in Pakistan?
Under the Payment of Wages Act, gratuity is typically 30 days of the last drawn salary for each completed year of service. The calculator uses a 26-working-day month to derive the daily rate.
What is the difference between gross and net salary?
Gross salary is your full contractual pay before deductions. Net (take-home) salary is what remains after income tax and other deductions — the amount actually deposited to your account.
Why is my tax higher than my colleague's on the same salary?
Tax depends on filer status and any other income you declare. Non-filers pay roughly double on income above Rs 600,000, so two people with the same gross salary can have very different take-home pay.
Does this include EOBI and provident fund deductions?
Where the calculator offers a deductions field, yes — enter them there. Otherwise the tool focuses on income tax, which is the largest deduction for most salaried employees.