End of service calculator KSA

Generate your customised report with our free calculator for all to calculate end of service benefits in the Kingdom of Saudi Arabia.

 

How to calculate gratuity in UAE ?

What is a Gratuity Calculator in KSA?

Moreover, the end of service calculator KSA considers a number of variables. This includes the employee’s base pay, length of service, and the cause of termination (e.g., resignation or employer termination). The calculator estimates the amount of gratuity owing to the employee based on the information one enters.

Resignation
Particulars
Date of Joining
Last working day
Service Days
Service Years
Total Salary
One Day salary (Salary/30)
Gratuity Eligibility
Gratuity Days
First 5 Year of Service
From 6th Service onwards
Total Gratuity
Gratuity Amount

What is the eligibility of getting Gratuity in KSA?

According to Saudi Labor law, one is only entitled to End of Service Benefits in KSA based on these two: length of service and cause of leaving one company.

  • Resignation: In case of employees, they will have to serve a minimum of 2 consecutive years.
  • Termination: They are eligible after 1 year of work.
 

Thus, the End of Service Calculator KSA is constructed with these conditions such that the eligibility is computed and the payout is computed automatically.

How does the Gratuity Calculator in KSA work?

The following details are often required to utilize a gratuity calculator:

  • Basic Salary: The monthly basic salary at the point of termination.
  • Length of Period of Service: This is the sum of the employee’s years and months of employment with the business. For this mention the start and end dates of service.
  • Separation Type: Whether the employee is resigning or being terminated.
 

 In addition, after this data is entered, the calculator estimates the gratuity amount by processing the information in accordance with the Saudi Labor Law’s regulations.

What are the factors that Affect Gratuity in KSA?

Furthermore, the amount of gratuity can be influenced by various factors, especially the reason for the end of the employment relationship. The sum payable is defined under Articles 85 and 87 depending upon the reason for separation: resignation or termination of employment

On Resignation:

According to Article 85 if service tenure is:

  1. Less than 2 years: No gratuity is paid.
  2. Between 2 and 5 years: One-third of the gratuity amount.
  3. Between 5 and 10 years: Two-thirds of the gratuity amount.
  4. More than 10 years: Full gratuity amount.

On Termination:

According to Article 85 if service tenure is:

  • Less than 1 year: No gratuity is paid.
  • Between 1 and 5 years: Half-month salary per year of service.
  • More than 5 years: One-month salary per year of service.

Exceptions: No matter how long they worked, an employee is entitled to a full gratuity under Article 87 if the employee terminates their employment owing to a circumstance beyond their control.

What are the factors that Affect Gratuity in KSA?

  • Employment Duration

  • Reason for Leaving (Resignation or Termination)

  • Basic Monthly Salary: According to Articles 85 and 87 of the Saudi Labor Law, each of these contributes to how much gratuity an employee is entitled to receive.

To help you understand how the end of service calculator KSA works, there is an example below to have a clear understanding:

For example, if an employee resigns on 19th May 2023 and at that time the basic monthly salary was 12000 SAR. The start date of the service of the employee was 14th June 2013, thus making the length of the period of service between 5-10 years.

Here’s how to calculate gratuity for the employee:

When Can Employees Lose Gratuity in Saudi Arabia?

Employees can lose their entitlement on gratuity in the following cases:

  • Grave misconduct: Also in the event the employee is involved in theft, fraud among other unethical activities, the employer has a right to withhold gratuity.
 
  • Breach of contract: In syndicates where an employee breaches important contracts stipulated in the contract, the employee may lose the gratuity.
 
  • Job abandonment: In case the employee leaves without giving notice or stays at home without any reasonable cause, the employer can withhold gratuity.
 

In order not to lose gratuity, employees need to adhere to company rules, observe the conditions of the contract, and leave work with dignity.

How to Claim Gratuity in Saudi Arabia?

To receive your gratuity without any hitches, note the following key steps:

  • Inform your employer or HR regarding your last day of work.
 
  • Some documents to take include your Iqama, final settlement letter and salary stubs.
 
  • Ask them to calculate the gratuity by several years you had worked, your final drawn salary, and Saudi labour law.
 
  • Make sure that the gratuity amount is disbursed within 14 days depending on the last day of working.
 
  • All the communication and receipts should be in order without any disagreements or postponements.
 

As you go through the various steps diligently, you will be able to gain your benefits upon retirement without difficulties.

Conclusion

Being familiar with your end of service benefits is not only necessary in case you are an employee making future plans but also to an HR manager wishing to comply with the law.  

The End of Service Calculator KSA makes it all rather easy literally with a few clicks, all the way through checking eligibility status to making final calculations of the total amount of payout.  

FAQs

 End of Service Calculator KSA is an online program that assists employees and employers to compute the end of service payouts as stipulated in Saudi Labor Law. It calculates the end-of-service benefits (EOSB) instantly and accurately by entering its contribution to the calculation like basic salary, length of employment, and the cause of separation.  

The eligibility is based on what kind of separation: Resignation: minimum 2-year constant service Termination: minimum 1 year of service The End of Service Calculator KSA automatically takes these conditions into account so that the results can be correct.  

The calculator is founded on the formulas of Articles 85 and 87 of the Saudi Labor Law. It considers:

  • Wage plan
  • Length of service
  • Justification of exit

With such inputs, it gives a gratuity amount estimate, which is legally legal and comprehendible. 

The payments of gratuity must be made immediately after the final settlement of an employee, normally on or soon after his/her last day of work. Punctual payments assist in preventing the legal problems and maintaining the Saudi laws of employment.  

Yes. Under Article 87, women employees have full right to get gratuity in case they resign before: 6 months of a marriage, or 3 postpartum months. 

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