Interactive Tool
KSA End-of-Service Calculator
Estimate based on Saudi Labour Law Article 84. Actual amounts may vary. Consult your employer or a labour lawyer for your specific situation.
Use this free calculator to estimate your Saudi Arabia end of service benefit. Enter your basic salary and length of service to get an instant estimate based on Saudi Labour Law (Article 84).
How Saudi Arabia gratuity is calculated
Saudi Arabia provides end of service benefits (sometimes called gratuity) to workers who complete service with their employer.
Rules under Saudi Labour Law (Article 84):
- Less than 2 years (resignation): no entitlement
- First 5 years: half month salary per year of service
- Beyond 5 years: full month salary per year of service
- Resignation with 2-5 years: 1/3 of calculated amount
- Resignation with 5-10 years: 2/3 of calculated amount
- Resignation with 10+ years: full entitlement
- Termination by employer: full entitlement
- Calculated on last basic salary (excluding allowances)
Example calculation
An employee with a basic salary of SAR 12,000 terminated after 8 years:
| First 5 years | 5 x (SAR 12,000 / 2) = SAR 30,000 |
| Remaining 3 years | 3 x SAR 12,000 = SAR 36,000 |
| Total | SAR 66,000 |
Frequently asked questions
- Is gratuity mandatory in Saudi Arabia?
- Yes. End of service gratuity is a legal entitlement under Saudi Labour Law (Article 84). Employers cannot waive or reduce it. If your employer refuses to pay, you can file a complaint with the Ministry of Human Resources.
- Is gratuity calculated on basic salary or total salary?
- Gratuity is calculated on basic salary only. This excludes housing allowance, transport allowance, phone allowance, and any other benefits. If your salary is a single lump sum with no breakdown, the entire amount may be considered basic salary. Check your employment contract.
- Do I get gratuity if I resign?
- If you resign with less than 2 years of service, you receive nothing. With 2-5 years, you get 1/3. With 5-10 years, 2/3. After 10 years, you receive the full entitlement.
- When should my employer pay gratuity?
- Your employer must pay gratuity as part of your final settlement within 1 week (resignation) or 2 weeks (termination). If they delay, you can file a complaint with the labour authority.
- Is gratuity taxed in Saudi Arabia?
- No. Saudi Arabia does not impose personal income tax, so your gratuity is received in full. However, if you are a tax resident of another country (e.g., UK, India), you may need to declare it as income in your home country.
Official source
For the full legal text, see: Saudi Labour Law (Article 84).