Free tools
Gratuity Calculator for Pakistan
Gratuity from an approved fund is tax free. From an unapproved scheme only part of it is, and the balance is taxed at your own top rate — which is where most final settlements go wrong.
Free, no sign-up. Every rate comes from the published FBR and provincial schedules.
These rates are pending final verification against the current Finance Act. Confirm with us before relying on them for a transaction.
- Exempt from tax
- Rs. 0
- Taxable portion
- Rs. 0
- Tax on it
- Rs. 0
- Taxed at your top rate
- 0%
The settlement
| Gratuity for the completed years | Rs. 0 |
| Less: exempt portion | Rs. 0 |
| Taxable gratuity | Rs. 0 |
| Tax at your marginal rate | Rs. 0 |
| What you receive | Rs. 0 |
This is an estimate based on the published salaried slab rates for the tax year selected. It is not tax advice. Your actual liability depends on allowances, tax credits, other sources of income and tax already withheld from you.
Worth knowing
- One month's salary per completed year is the common formula, but your contract or your employer's scheme governs. Change the salary figure to model a different multiple.
- Gratuity from a fund approved by the Commissioner is exempt in full. Most private schemes are not approved, and nobody finds out until the settlement.
- The tax is charged at your own top slab rate because the gratuity sits on top of the year's salary.
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