Pakistan Severance Pay Calculator 2025
Calculate end-of-service benefits and severance costs accurately according to Pakistan Labor Laws. Free calculator for HR professionals, hiring managers, and employees in Pakistan.
Calculate Pakistan Severance Pay in Seconds
Our free Pakistan severance calculator helps you accurately estimate end-of-service gratuity based on current Pakistan employment laws. Whether you're calculating for various employment structures, get instant, compliant results.
✓
100% compliant with Pakistan Labor Laws
✓
Supports permanent, contractual, and daily wage employment
✓
Handles resignation, termination, and retirement scenarios
✓
Instant, accurate severance pay calculations
✓
Free to use for all HR professionals in Pakistan
Why Choose Our Pakistan Severance Pay Calculator
🇵🇰
CPEC Employment Standards
Align with China-Pakistan Economic Corridor employment standards and ensure compliance with evolving Pakistan labor practices in infrastructure and development projects.
📋
Provincial Law Compliance
Navigate Pakistan's complex federal and provincial labor regulations with calculations that consider compliance and record-keeping requirements across different provinces.
⏰
Working Hours Integration
Factor in Pakistan working hours and overtime regulations for accurate severance calculations including overtime compensation considerations.
🎉
Holiday Pay Calculation
Integrate public holidays and holiday pay considerations into severance calculations for comprehensive employee compensation.
📝
Contract Type Flexibility
Handle diverse probation and employment contract types with specialized calculations for Pakistan's varied employment landscape.
🛡️
Employee Welfare Focus
Ensure calculations align with employee benefits and welfare provisions under Pakistan's social protection framework.
Pakistan End of Service Benefits: Complete Reference Guide 2025
Pakistan Severance Pay Rates by Employment Type
Employment Type in Pakistan
Severance Pay Rate
Example (PKR 75,000 monthly salary)
Permanent Employee
30 days notice + gratuity
PKR 75,000 + accrued benefits
Contractual Employee
As per contract terms
Contract-specific amount
Permanent vs Contractual Employment Severance in Pakistan
Pakistan Permanent Employee Severance
- Notice Period: 30 days written notice or pay in lieu
- Gratuity: After completion of qualifying service
- Leave Encasement: Accrued annual and casual leave
Pakistan Contractual Employee Severance
- Contract Terms: As specified in employment agreement
- Early Termination: Compensation as per contract clause
- Gratuity: Subject to contract duration and terms
How to Calculate Pakistan Severance Pay: 5-Step Guide
1
Identify Pakistan Employment Classification
Determine if the employee is permanent, contractual, or probationary worker in Pakistan, as this affects severance entitlements under federal and provincial labor laws.
2
Calculate Service Period and Benefits
Count total service period and identify accrued benefits including annual leave, casual leave, and any overtime compensation due.
3
Determine Termination Category
Classify the termination as resignation, employer termination, retirement, redundancy, or mutual agreement as per Pakistan labor law definitions.
4
Apply Pakistan Severance Formula
Use Pakistan wage and salary regulations: 30 days notice period pay plus applicable gratuity and leave encashment.
5
Calculate Final Pakistan Severance Amount
Sum up notice pay, gratuity, leave encashment, and any other applicable benefits. Ensure compliance with record-keeping requirements for documentation.
Pakistan Severance Pay FAQ: Most Asked Questions 2025
What is the standard notice period for termination in Pakistan?
Pakistan labor law requires 30 days written notice for termination of permanent employees, or payment in lieu of notice. The notice period may vary based on employment contract terms and provincial regulations, with some senior positions requiring longer notice periods.
Do Pakistani employees get gratuity upon termination?
Yes, employees in Pakistan are entitled to gratuity after completing qualifying service periods as defined by company policy or collective bargaining agreements. The amount and eligibility criteria vary by employer and are subject to employee welfare provisions.
How do provincial labor laws affect severance in Pakistan?
Pakistan's federal structure means labor laws can vary between provinces. While basic employment protections are federal, provinces may have additional requirements for severance calculations, making compliance and documentation crucial for multi-provincial employers.
What happens to overtime pay during termination in Pakistan?
All accrued overtime compensation must be paid during termination settlements. Pakistan's working hours and overtime regulations require employers to calculate and pay any outstanding overtime wages as part of final settlement.
Are leave encashments mandatory in Pakistan severance calculations?
Yes, employees are entitled to encashment of accrued annual leave and casual leave upon termination. The calculation includes unused leave entitlements accumulated during the service period, paid at the current salary rate.
Can Pakistani employers terminate employees without severance pay?
Pakistani employers can only avoid severance in cases of serious misconduct leading to summary dismissal. However, they must follow proper termination and resignation procedures and provide documented justification for withholding any statutory benefits.
