Final Settlement Calculator Pakistan
What is included in a final settlement in Pakistan?
Salary for the days worked and not yet paid, unused annual leave paid out, notice pay if the employer ended a permanent job without the notice the law requires (one month in most provinces, three months in Balochistan), gratuity under the province's Standing Orders law, and any bonus or allowance owed, less advances or loans. Casual and sick leave are not paid out.
A final settlement is five separate entitlements that each follow their own rule, and people usually check only the total.
Fill in the job, the dates and how it ended, and the statement below shows every line with the rule behind it.
Built by Muhammad Shahzeb Anwar, MSc Industrial and Organizational Psychology. Built on the same gratuity rules as his Gratuity Calculator, with notice and leave from the Standing Orders, Factories and Shops laws of each province.
Your final settlement
Runs in your browser. Nothing you type is stored or sent anywhere.
Notice: how much, and who pays
| Where | Notice for a permanent worker | Pay in lieu |
|---|---|---|
| Islamabad, Punjab (1968 Ordinance) | One month, either side (SO 12(1)) | Average wages of the last three months; dues within two working days (SO 12(4)) |
| Punjab Labour Code 2026 | 30 days, either side (14 in a micro-enterprise); none for gross misconduct (s.150) | 30 days' remuneration |
| Sindh | One month, either side (SO 16(1)) | Average wages of the last three months |
| Khyber Pakhtunkhwa | One month, either side (clause 17(1)) | Wages for the period |
| Balochistan | Three months, either side (SO 16(1)) | Last month's wages |
Temporary and probationary workers are outside the notice rule in the Standing Orders. A worker who resigns owes the same notice; whether an employer may deduct the shortfall from final dues is disputed, so the calculator shows it separately instead of deducting it.
Leave that is paid out, and leave that is not
Earned annual leave is paid on discharge: the Factories Acts pay it when employment ends, the Shops laws allow it to be encashed, and the Punjab Labour Code pays unused leave pro rata on termination. Casual leave and sick leave are not carried into the settlement. Entitlements differ: 14 days a year in most of the country, 18 under the Punjab Code, 20 for Balochistan factories, with different caps on how much can accumulate. Enter the days actually earned and unused.
Gratuity, in one line
Thirty days' wages for each year of service (two months' in Balochistan), with a part year over six months counted as a full year, not due on dismissal for misconduct, and replaceable by a provident fund under conditions that differ by province. The Gratuity Calculator explains each rule and the income-tax treatment.
What this will not tell you
This is the statutory minimum from the figures you enter. It does not read the contract or appointment letter, which can give more; it does not settle whether particular allowances count as wages, or whether notice shortfall can be deducted; and it does not calculate income tax on the settlement. It cannot tell you which Punjab regime applies on your date. Nothing you type leaves your browser.
Questions people actually ask
How is final settlement calculated after resignation in Pakistan?
Unpaid salary for the days worked, plus unused annual leave at the daily rate, plus gratuity (it is payable on resignation under the Standing Orders), plus other dues, less advances. If the worker left without serving the required notice, the employer may claim notice pay, which is disputed as a deduction.
What is the notice period under Pakistan labour law?
One month for a permanent worker on either side under the Standing Orders in Islamabad, Punjab, Sindh and KP, 30 days under the Punjab Labour Code, and three months in Balochistan. Temporary and probationary workers are outside the rule.
Is leave encashment compulsory in Pakistan?
Unused earned annual leave is paid when employment ends under the Factories Acts and the Punjab Labour Code, and Shops laws allow it to be encashed. Casual and sick leave are not paid out.
How soon must final dues be paid?
Under the 1968 Standing Orders (Islamabad, and Punjab where the Code does not yet apply; the Punjab Labour Code also says two working days), within two working days of the end of employment. Other provinces set their own timelines; payment-of-wages laws also apply.
Can my employer withhold my final settlement?
Lawful deductions such as advances can be taken. Withholding the whole settlement, or gratuity outside the misconduct exception, is not allowed; the remedy is a claim before the labour authority or court of the province.
Sources
Checked against the text of the law on 17 October 2026. Laws and notified rates change; if a source below has moved on, the source wins over this page.
- Standing Orders Ordinance 1968 (federal text), Pakistan Code: https://pakistancode.gov.pk/pdffiles/administrator5b5a573f3bc475ac52eaf06c3dba6c45.pdf
- Standing Orders Ordinance 1968 (Punjab text), Punjab Code: https://punjabcode.punjab.gov.pk/uploads/articles/39-industrial-and-commercial-employment-standing-orders-ordinance-1968-vi-of-1968-pdf.pdf
- Punjab Labour Code 2026 (Act IX of 2026): https://punjabcode.punjab.gov.pk/uploads/articles/85-of-2025-the-punjab-labour-code-2025_with_contents-pdf.pdf
- Sindh Terms of Employment (Standing Orders) Act 2015: https://lhr.sindh.gov.pk/storage/rulesRegulations/6jLG9Ha7bNMwJgKNpGyxfmIVa4YzXmeLAvV60TXW.pdf
- KP Industrial and Commercial Employment (Standing Orders) Act 2013: https://kpcode.kp.gov.pk/uploads/2013_11_THE_KHYBER_PAKHTUNKHWA_INDUSTRIAL_AND_COMMERCIAL_EMPLOYMENT_STANDING_ORDERS_ACT_2013.pdf
- Balochistan Industrial and Commercial Employment (Standing Orders) Act 2021: https://pabalochistan.gov.pk/storage/4225/2021-07-19_09_54_53_cfe51.pdf
- Factories Act 1934 (federal), ss.49B-49I: https://pakistancode.gov.pk/pdffiles/administratorf38efe0a6e760531f05b4a29ba4ba215.pdf
- West Pakistan Shops and Establishments Ordinance 1969 (Punjab text): https://punjabcode.punjab.gov.pk/uploads/articles/the_west_pakistan_shops_and_establishments_ordinance-_1969-pdf.pdf
- Sindh Factories Act 2015: https://lhr.sindh.gov.pk/storage/rulesRegulations/vvE55rVbpomC9o6VWibHzoR5ISdxrF8weh1h2oLK.pdf
- Sindh Shops and Commercial Establishments Act 2015: https://lhr.sindh.gov.pk/storage/rulesRegulations/BGUHOVhjWrpnGye93qff0OTpi7Do5FEtFMk4bSqA.pdf
- KP Factories Act 2013: https://kpcode.kp.gov.pk/uploads/THE_KHYBER_PAKHTUNKHWA_FACTORIES_ACT_20131.pdf
- KP Shops and Establishment Act 2015: https://kpcode.kp.gov.pk/uploads/THE_KHYBER_PAKHTUNKHWA_SHOPS_AND_ESTABLISHMENT_ACT_2015.pdf
- Balochistan Factories Act 2021: https://pabalochistan.gov.pk/storage/4216/2021-07-16_11_03_05_66551.pdf
- Balochistan Shops and Establishments Act 2021: https://pabalochistan.gov.pk/storage/4219/2021-07-16_11_04_05_d24d7.pdf
Cite this tool
Free to use and free to quote. If a figure here is useful in something you are writing, a link back is all that is asked.
Muhammad Shahzeb Anwar, MSc Industrial and Organizational Psychology. Final Settlement Calculator Pakistan. Shahzeb Speaks. https://www.shahzebspeaks.com/final-settlement-calculator-pakistan/
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