Gratuity Claim Form (Pakistan)

A Gratuity Claim Form in Pakistan sets out the particulars the recipient needs to deal with the request, in a structured and reviewable form.

Gratuity in Pakistan is a statutory end-of-service benefit payable to workers who have completed a minimum qualifying period of continuous service with the same employer. The Standing Orders Ordinance 1968, applicable to industrial and commercial establishments employing fifty or more workers, mandates that a permanent worker who has completed three years of continuous service is entitled to receive gratuity upon termination, resignation, retirement, or death. The quantum of gratuity is typically calculated at the rate of thirty days' last drawn wages for each completed year of service, or proportionate fraction thereof.

The Payment of Wages Act 1936, enforced by the provincial Labour Department through Inspectors of Factories and Labour Inspectors, requires employers to pay all earned wages including terminal benefits within two working days of the date of dismissal, and within seven days in other cases of separation. Section 4 of the Payment of Wages Act 1936 prohibits deductions from wages except those expressly authorised under Section 7. The Labour Court constituted under the West Pakistan Labour Courts Act 1964 has jurisdiction to adjudicate disputes arising from non-payment or underpayment of gratuity.

For workers covered by the Employees Old-Age Benefits Institution (EOBI) scheme under the Employees Old-Age Benefits Act 1976, gratuity is distinct from the EOBI pension entitlement — an employee may be entitled to both gratuity from the employer and EOBI pension from the institution. The two entitlements are separate and non-substitutable under EOBI Regulation No. 3.

The Gratuity Claim Form serves as the triggering document for the employer's obligation to calculate, prepare, and disburse the terminal gratuity payment. Where an employer refuses to pay or disputes the calculation, the aggrieved employee may file a complaint with the Directorate General of Labour Welfare, the Commissioner of Labour in the relevant province, or the Labour Court having territorial jurisdiction. In cases of employer insolvency, unpaid gratuity is treated as a preferential debt under the Companies Act 2017 and must be settled before other unsecured creditors.

In the public sector, gratuity and pension entitlements are governed by the Civil Servants (Appointment, Promotion and Transfer) Rules 1973, the Pension cum Gratuity Scheme under the Government Servants (Efficiency and Discipline) Rules 1973, and the relevant provincial service rules. Federal civil servants and provincial employees follow separate calculation formulae under their respective pension rules, distinct from the private sector framework under the Payment of Wages Act 1936 and the Standing Orders Ordinance 1968.

The legal framework governing the Gratuity Claim Form (Pakistan) in Pakistan draws on several key statutes and regulatory bodies. Under the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, employers in Pakistan must issue appointment letters with terms of service. The Industrial Relations Act 2012 governs collective bargaining and the National Industrial Relations Commission (NIRC). The Employees Old-Age Benefits Institution (EOBI) administers pensions under the EOBI Act 1976. The Federal Board of Revenue (FBR) administers PAYE under the Income Tax Ordinance 2001. Labour Courts adjudicate employment disputes. Parties executing a Gratuity Claim Form (Pakistan) in Pakistan should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Payment of Wages Act 1936 sets the foundational requirements.

A Gratuity Claim Form in Pakistan is required whenever an eligible employee separates from service and wishes to formally claim the end-of-service gratuity benefit accrued during the employment relationship.

A Gratuity Claim Form is needed when a permanent worker covered by the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968 retires upon reaching the age of superannuation — typically 60 years for private sector employees — and seeks payment of accumulated gratuity from the employer before final settlement of the employment account.

A Gratuity Claim Form is required when an employee is terminated by the employer, whether by way of retrenchment under Standing Order 12 of the Standing Orders Ordinance 1968, dismissal for disciplinary reasons under Standing Order 15, or downsizing under a Voluntary Separation Scheme (VSS) approved by the relevant authority. In each case, the claim form triggers the employer's payment obligation within the statutory timeline under the Payment of Wages Act 1936.

A Gratuity Claim Form is needed when an employee resigns after completing the minimum qualifying period of continuous service — typically three years under the Standing Orders Ordinance 1968 — and the employment contract or applicable collective bargaining agreement (CBA) negotiated with a Collective Bargaining Agent (CBA) registered under the Industrial Relations Act 2012 provides for gratuity on resignation.

A Gratuity Claim Form is required when the employee dies during service, in which case the claim must be filed by the legal heirs or nominee designated by the employee. The legal heirs must establish their entitlement through a succession certificate issued by the District Court under the Succession Act 1925, or through the succession process applicable under the Muslim Family Laws Ordinance 1961 for Muslim employees.

A Gratuity Claim Form is needed when an employer-funded provident fund or gratuity fund administered under a Trust Deed approved by the Federal Board of Revenue (FBR) under the Income Tax Ordinance 2001 requires formal documentation of the claim before releasing accumulated contributions and employer-matching gratuity from the trust corpus.

A Gratuity Claim Form is required in collective disputes where a Labour Court, Industrial Tribunal constituted under the Industrial Relations Act 2012, or a Conciliation Officer appointed by the provincial Labour Department requires formal individual claims to be submitted as part of a batch settlement with the employer.

A valid Gratuity Claim Form in Pakistan under the Payment of Wages Act 1936 and the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968 must contain the following essential elements to support successful processing and disbursement.

Employee Particulars: Full legal name of the claimant exactly as it appears on their NADRA Computerised National Identity Card (CNIC), CNIC number in 13-digit format (XXXXX-XXXXXXX-X), employee code or payroll number, designation at the time of separation, and department or division within the establishment.

Employer Details: Full registered name of the employer or establishment, registration number with the Securities and Exchange Commission of Pakistan (SECP) under the Companies Act 2017 or with the provincial Registrar of Firms under the Partnership Act 1932, and address of the principal place of business where the employee was posted.

Employment Period: Exact date of joining (commencement of continuous service), date of separation, and total period of continuous service calculated in years, months, and days. The calculation must account for any breaks in service — under the Standing Orders Ordinance 1968, a break of more than six months typically resets the continuity of service for gratuity purposes unless caused by reasons beyond the employee's control.

Last Drawn Salary: Basic salary at the time of separation, any dearness allowance, and other allowances that form part of gross wages under the Payment of Wages Act 1936 relevant to the gratuity calculation. Many collective bargaining agreements (CBAs) define the wage basis for gratuity differently from the statutory minimum — the claim form must reflect the contractual entitlement.

Gratuity Calculation: Step-by-step calculation showing: (a) eligible service in completed years; (b) last drawn monthly basic wage; (c) daily wage rate (monthly basic divided by 26 working days per the Payment of Wages Act 1936 convention); (d) thirty days' wage per completed year; and (e) total gratuity amount in Pakistani Rupees (PKR). Where a fractional year qualifies under the applicable CBA or standing orders, the proportionate amount must be shown.

Reason for Separation: The ground of separation — retirement, resignation, termination, retrenchment, death, or VSS — must be stated precisely, as entitlement thresholds and calculation formulae differ. Standing Order 12 of the Standing Orders Ordinance 1968 specifies separate treatment for retrenchment-related gratuity.

Bank Account Details: Name of bank, branch, IBAN (International Bank Account Number) of the claimant or legal heir, required for direct transfer under the State Bank of Pakistan (SBP) Real-Time Gross Settlement (RTGS) or Interbank Fund Transfer (IBFT) system. Cash payments above PKR 25,000 are restricted under the State Bank of Pakistan prudential regulations.

Declaration and Undertaking: A signed declaration that the information provided is true and correct, that no prior gratuity claim has been settled for the same period of service, and that the claimant undertakes to refund any excess payment if discovered upon audit by the employer's internal audit team or the provincial Labour Department.

Supporting Documents List: Attested copies of CNIC, appointment letter, latest pay slip, service certificate, separation letter or retirement order, and succession certificate (if claim is by legal heirs). Documents must be attested by a First Class Magistrate or Oath Commissioner under the Oaths Act 1873.

Forms-legal.com provides this Gratuity Claim Form (Pakistan) template to help employees assert their statutory entitlement confidently and completely. Employees facing non-payment or underpayment should consult an advocate enrolled at the relevant provincial Bar Council — Lahore Bar, Sindh Bar, Peshawar Bar, or Quetta Bar — or approach the nearest Labour Court or Office of the Commissioner of Labour for assistance.