Gratuity Calculation Formula In Excel Pakistan Jun 2026

To automate this in Microsoft Excel, you can use the following formula. Assume: Date of Joining Cell B2: Date of Leaving Cell C2: Last Drawn Gross Salary Step 1: Calculate Years of Service

The law assumes 26 working days in a month for wage calculation purposes.

The standard gratuity calculation in Pakistan is based on the . While company policies may vary, the most common standard aligns with the statutory requirement: gratuity calculation formula in excel pakistan

Note: This second formula assumes a "30 days wages" calculation which effectively rounds up to a full month's salary per year. We will use this standard approach for our Excel guide as it is the most widely accepted in Pakistani corporate culture.

. It is typically payable to permanent employees who have completed at least 12 months of service To automate this in Microsoft Excel, you can

Gratuity equals open paren the fraction with numerator Last Drawn Gross Salary and denominator 26 end-fraction close paren cross 30 cross Years of Service Last Drawn Gross Salary:

While most provinces follow the 30-day rule, Balochistan law provides a more generous 60 days' wages per year. While company policies may vary, the most common

Key Components Explained:

To automate the rounding rule (6+ months = 1 year), use this formula in cell : =ROUND(DATEDIF(A2, B2, "m")/12, 0) 3. Calculate Final Gratuity

=IF(F2>=1, (E2*F2*7)/26, 0)