Gratuity & EOBI Calculator
Three related answers in one place: the gratuity due when service ends, the EOBI old-age pension a career earns, and what EOBI contributions cost each month. All calculated in your browser.
Enter both dates to see the entitlement.
The rules used here — thirty days' wages per completed year, the divisor of 50 in the pension formula, the 15-year qualifying period — come from statute and change rarely. The amounts do not: minimum wage and minimum pension are set by notification, vary by province, and are editable above with the figure current at 1 July 2025. This is an estimate, not advice — check your own contract and the current notifications.
What you can do
- Check a final settlement. See the gratuity figure and exactly how it was reached before you sign anything.
- See the six-month line. Service is shown to the day, so you can tell whether a leaving date is about to cost a whole year.
- Estimate a pension. Both the formula result and the minimum, so you can see which one actually applies.
- Budget EOBI as an employer. Monthly and annual cost across your headcount.
Why the rules and the amounts are kept apart
Thirty days per year, the divisor of fifty, the fifteen-year qualifying period — these sit in statute and barely move. Minimum wage and minimum pension move almost every year, differ between provinces, and are the figures most likely to be out of date in any calculator you find online. So they are not hidden constants here: they are inputs, labelled with the date they were last checked, and you can change them.
Frequently asked questions
How is gratuity calculated in Pakistan?
The standard rule comes from Standing Order 12(6) of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968, since re-enacted province by province. It provides thirty days’ wages for every completed year of service, and for any period in excess of six months. With a thirty-day month that works out as one month’s wage for each qualifying year.
Does a part year count?
Only if it exceeds six months. Six months and a day rounds up to a full year; six months exactly does not. The calculator shows your service as years, months and days so you can see how close the line is — a resignation date moved by a week can be worth an entire year of gratuity.
Is gratuity based on gross salary or basic pay?
On "wages" as your contract and the applicable standing orders define them, which in practice is most often basic pay rather than gross. Some employers include allowances that form part of wages. Enter whichever figure applies to you — the calculator does not assume one or the other, because getting this wrong changes the answer far more than any rounding rule.
Why is there a choice between 30 and 26 days?
To turn a monthly wage into a daily one you have to divide by something. Dividing by 30 treats a month as a calendar month, so thirty days’ wages equals one month’s wage. Dividing by 26 treats it as working days only, which raises the daily rate and so raises the gratuity by about 15%. Both conventions are used; check which one your employer applies.
How is the EOBI pension worked out?
Average monthly wage over the last twelve months of insurable employment, multiplied by the number of years of insurable employment, divided by fifty. If that comes to less than the notified minimum pension, the minimum is paid instead. You need at least fifteen years of insurable employment, and to have reached sixty for men or fifty-five for women.
Why are EOBI contributions based on minimum wage rather than my salary?
Because that is how the scheme is assessed. The employer pays 5% and the employee 1% of the minimum wage, not of what the employee actually earns, so the contribution is the same for a junior clerk and a senior manager at the same company. It is also why the pension a long-serving employee receives can look small next to their final salary.
Are the default amounts current?
The rules are stable, but the amounts are not. Minimum wage is set by each province and revised most years in the provincial budget, and the minimum pension is set by notification. The defaults here are labelled with the date they were last checked, and both are editable — treat them as a starting point and confirm the figure that applies to you.
Is my salary information sent anywhere?
No. Every calculation runs in your browser and nothing is transmitted or stored on a server. That matters for a tool where the natural inputs are your own salary, your joining date and your age.
Running payroll on spreadsheets?
AgileTechForge builds HR and payroll systems that track service, accrue gratuity and file EOBI without anyone rebuilding the same workbook every month.
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