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.

What is Gratuity or End of Service Benefits in KSA?

A gratuity, sometimes referred to as end-of-service benefits (EOSB), is a financial incentive given to employees as a thank-you for their dedication and years of service to the organization. The Saudi Labor Law governs gratuities in the Kingdom of Saudi Arabia (KSA) and specifies the duties and rights of employers and employees. Usually, this sum is paid out after an employee’s job ends—either by resignation or termination.

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, the employee’s entitlement to Gratuity is calculated based on the type of separation and years of service.

If the employee resigns, he is entitled to the gratuity after working for the same organization for two years. On the other hand, if the employee is terminated, he is entitled to receive a gratuity for working more than a year in the same company.

What is a Gratuity Calculator in KSA?

The gratuity calculator in KSA is a specialized tool designed to help both employees and employers determine the end-of-service benefits (EOSB) that an employee is entitled to receive upon the termination of their employment. This calculator guarantees accuracy and complies with Saudi Labor Law while simplifying the gratuity process.

The gratuity calculator considers a number of variables, including 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 entered.

How does the Gratuity Calculator in KSA work?

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

  1. Basic Salary: The monthly basic salary at the point of termination.
  2. 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.
  3. Separation Type: Whether the employee is resigning or being terminated.

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?

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:

  1. Less than 1 year: No gratuity is paid.
  2. Between 1 and 5 years: Half-month salary per year of service.
  3. 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 their employment is terminated owing to a circumstance beyond their control.

What are the factors that Affect Gratuity in KSA?

To help you understand how the gratuity calculator in 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.

The gratuity for the employee can be calculated as below:

Gratuity Calculator KSA

FAQs

If a female employee terminates her employment within three months of giving birth or six months of getting married, she will also be eligible for the full payment.

When an employee’s employment comes to an end—either through resignation or termination—a gratuity is paid as part of the overall settlement. According to their duration and the terms of their departure, the payout is done.

After working for the same company for two years, an employee is entitled to a gratuity; however, if the employee is terminated, he will still be eligible to earn a gratuity for more than a year of service.

The gratuity in KSA is calculated as per the last basic salary of the employee and the type of separation either resignation or termination.

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