Gratuity & Labor Law Blog

    Expert insights on gratuity, labor laws, and employee rights in Pakistan

    5 min read

    Understanding Gratuity Laws in Pakistan: A Complete Guide

    Learn everything about gratuity laws in Pakistan, including eligibility criteria, calculation methods, and your legal rights as an employee.

    6 min read

    Gratuity vs Pension in Pakistan: What's the Difference?

    Confused about the difference between gratuity and pension? This comprehensive guide explains both retirement benefits and how they work in Pakistan.

    4 min read

    Tax Implications of Gratuity in Pakistan 2025

    Understand the tax treatment of gratuity payments in Pakistan. Learn about exemptions, limits, and how to minimize your tax liability.

    7 min read

    5 Common Mistakes in Gratuity Calculation and How to Avoid Them

    Don't lose out on your rightful gratuity amount! Discover the most common errors in gratuity calculations and how to ensure you receive what you deserve.

    5 min read

    Punjab Minimum Wage Increased to Rs. 40,000: What Workers & Employers Need to Know (2025-2026)

    The Punjab government has raised the minimum wage to Rs. 40,000 per month, effective July 1, 2025. This article details the new rates, allowable deductions, protection for existing higher wages, and equal pay provisions for all workers in Punjab.

    7 min read

    How to Calculate Tax on Gratuity in Pakistan: Categories, Exemptions, and Limits (ITO, 2001)

    Gratuity payments in Pakistan are taxed as 'Salary' under the Income Tax Ordinance, 2001. This guide explains the three main tax categories and how to calculate your exemption: the full exemption for government employees , the higher PKR 300,000 limit for Approved Gratuity Funds (AGF) , and the highly restricted PKR 75,000 cap for all unapproved schemes , which is a one-time lifetime benefit.