PAKISTAN Labour Law

PAKISTAN Gratuity
Employee Rights 2025

Understanding the West PAKISTAN Industrial and Commercial Employment Ordinance and the 30-day gratuity rule.

Gratuity Rights in PAKISTAN

In PAKISTAN, gratuity is governed by the West PAKISTAN Industrial and Commercial Employment (standing Orders) Ordinance, 1968. It is a mandatory benefit for permanent employees in establishments with 20 or more workers.

The 30-Day Rule

Every permanent employee is entitled to a gratuity equivalent to 30 days' wages for every completed year of service (or any period over 6 months).

Authentic FAQ (search Console Data)

Do I get gratuity if my company has a Provident Fund?
Under the standing Orders Ordinance, an employer is NOT required to pay gratuity if they have established a Provident Fund where the employer's contribution is at least equal to the gratuity amount.
Is gratuity payable on resignation?
Yes. Gratuity is payable upon termination of employment for any reason, including resignation, death, or retirement, provided you have completed the minimum service period (usually 1 year).

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