What is Gratuity in Asian Countries?

Gratuity is a statutory benefit paid by employers to employees in Asian countries when they leave their job after completing a qualifying period of service.

In Asian countries like India, Pakistan, and Bangladesh, gratuity is governed by specific labor laws. India follows the Payment of Gratuity Act, 1972, while other countries have their own regulations.

Our calculator supports major Asian countries with their specific calculation formulas and requirements.

How Gratuity Works in Asian Countries

INIndia Gratuity Formula

(Basic + DA) × 15 × Years of service ÷ 26. Service of 6+ months counts as full year. Minimum 5 years required. Maximum cap: ₹20 lakh.

Minimum service: 5 years

PKPakistan Formula

30 days per year of service. Minimum 1 year of service required.

Minimum service: 1 year

BDBangladesh Formula

30 days per year of service. Minimum 1 year of service required.

Minimum service: 1 year

Gratuity Calculation Examples

Example: India Gratuity (6 Years)

Basic Salary: 50,000/month

Years of Service: 6 years

Calculation:

Gratuity = (50,000 × 15 × 6) ÷ 26 = ₹173,077

Asian Countries Gratuity Comparison

AspectIndiaPakistanBangladesh
Minimum Service5 years1 year1 year
Formula(Basic+DA) × 15 × Years ÷ 2630 days/year30 days/year
Salary BasisBasic + DABasicBasic
Maximum Cap₹20 lakhNo capNo cap

Tips & Best Practices

📋 Keep Records

Maintain copies of employment contract, salary slips, and service certificates. Essential for claiming gratuity.

💰 Understand Salary Structure

In India, gratuity includes Basic + Dearness Allowance. In other countries, it's usually basic salary only.

Calculate Before Resigning

Use our calculator before making career decisions to understand your gratuity entitlement.

Verify with HR

Always verify the final amount with your HR department or employer before leaving.

Why Use Our Calculator?

Multi-Country Support

Calculate gratuity for India, Pakistan, Bangladesh, and other Asian countries.

Law-Based Calculations

Formulas aligned with Payment of Gratuity Act (India) and local labor laws.

Instant Results

Get your gratuity estimate with detailed breakdown in seconds.

Frequently Asked Questions

Gratuity is a statutory benefit paid by employers to employees when they leave their job after completing a qualifying period. In India, it's governed by the Payment of Gratuity Act, 1972.
Under the Payment of Gratuity Act, 1972: (Last drawn salary × 15 × Years of service) ÷ 26. Last drawn salary = Basic + DA. Service of 6+ months counts as full year. Minimum 5 years required.
Gratuity is partly exempt from tax. Government employees receive full exemption. For others, the least of (a) ₹20 lakh, (b) actual gratuity received, or (c) 15 days salary × years of service is exempt.