# Gratuity Calculator

If you want to determine the number of cash benefits you will receive after paying five years of service to any company in Pakistan, then you can use our gratuity calculator.

The additional amount of money (except salary) that an organization is bounded to pay to its employee (having at least five years of service) is called gratuity. If you meet all the above criteria, then you are eligible for gratuity.

## Formula of Gratuity Calculator

To quickly estimate the additional amount of money you may get, you can use our gratuity calculator, or you can use the formula listed below:

Gratuity = Number of years at work * (Last month's salary + D.A.) * 15/26

Where,

DA = Dearness allowance is further compensation offered by some countries (like India, Pakistan, and Bangladesh) to government employees and pensioners to cover inflation.

Note:

You can calculate inflation by using the Inflation Calculator.

## Gratuity Eligibility

If you want to determine whether you're eligible for the gratuity or not, then you should meet the following criteria:

• If your company provides retirement benefits and is eligible for superannuation, you will get a gratuity.

• You will get retirement from a job.

• At least five years of employment is mandatory.

### Example

Let's have a quick look at an example to clear the concepts about gratuity.

Suppose an employee is working for 13 years in a Pakistani company. The lump-sump salary after the last month of his service, including D.A., is 4,000 PKR. Now calculate the gratuity earned by an employee based on those values.

Given data

Number of years at work = 13 years
Last month's salary + D.A = 4,000 INR

To Find

Gratuity = ?

Solution

By using the formula, we will find the value of gratuity:

Gratuity = Number of years at work * (Last month's salary + D.A.) * 15/26

Putting values in the formula:

Gratuity = 13 * ₹4,000 * 15 / 26, = 30,000 INR

### How to use the Gratuity Calculator?

The steps to use the gratuity calculator are as follows:

Step 1: Enter the days of how long did you work in the first required input.

Step 2: Enter last month's salary in the second required input.

Step 3: The calculator will automatically display an answer on the screen.

### Calculator use

To determine the additional money, you will get from a company after paying five years of services; you can use our gratuity calculator. Just enter the required value, and our free online calculator will display the value on the screen.