End of Service Gratuity Calculator

In Saudi Arabia, employers must pay End-of-Service Benefits (ESB) to their employees when their job ends, whether they quit or get fired. The Saudi labor law end-of-service calculator helps workers figure out how much money they’ll get. But calculating these benefits can be tricky because there are many things to consider.

This article will break down the Saudi labor law end-of-service so you can understand your rights and responsibilities. We’ll walk you through how to use the calculator and explain the rules that apply

Calculate your exact End of Service Gratuity
Calculate your exact End of Service Gratuity

Your Gratuity Amount:

How Gratuity is Calculated in Saudi Arabia?

When you leave a job in Saudi Arabia, you're often entitled to a payment called a gratuity. It's like a bonus for your time at the company. Let's dive into what factors affect how much you'll get.

01

Length of Service

The longer you've worked for a company, the more gratuity you'll get. It's a reward for your loyalty.

02

Average Monthly Salary

Your salary, including any regular allowances, is used to calculate your gratuity. The higher your salary, the more you'll get.

03

Type of Contract

The kind of contract you have (fixed-term or indefinite-term) can affect your gratuity. Some contracts might have different rules.

04

Reason for Leaving

If you quit or were fired for a good reason, you're usually eligible for gratuity. But the reason you left can sometimes influence the amount.

05

Following the Law

It's important to follow Saudi Arabia's labor laws when it comes to gratuity. Both employers and employees should make sure everything is done correctly.

06

Probation Period

Some companies might require you to work for a certain amount of time before you're eligible for gratuity. This is called a probation period.

What Are End-of-Service Benefits in Saudi Arabia?

When you leave a job in Saudi Arabia, you're entitled to certain financial benefits. These are called end-of-service benefits. Let's break down what they are and how they work.

Gratuity

The biggest part of your end-of-service benefits is gratuity. It's a payment based on how long you've worked for your company. The longer you've been there, the more you'll get. Think of it as a thank-you gift for your time and service.

Unpaid Wages and Allowances

If you're owed any money for your work, like salary or bonuses, you'll get it as part of your end-of-service benefits. It's like getting paid for all the hours you put in.

Vacation Pay

If you've earned vacation days but haven't used them all, you'll get paid for them when you leave. This is to make sure you're compensated for all your time.

Repatriation Costs (For Foreign Workers)

If you're a foreign worker, your company might help pay for your trip back home. This is to make your transition easier.

When You Might Not Get End-of-Service Benefits in Saudi Arabia

In Saudi Arabia, there are some situations where an employee may not receive end-of-service benefits (ESB). Here’s a simple guide to understand these cases:

1. Termination Due to Misconduct or Serious Negligence

If an employee is let go because of serious misconduct, negligence, or breaking company rules, they typically don’t qualify for ESB. This rule applies to any major breach of contract or workplace policies.

2. Resigning Within the First Two Years

There's an exception: If you're terminated due to circumstances beyond your control (like a force majeure), you'll get the full gratuity, regardless of your service length.

3. Partial ESB for Resignation Between Two and Five Years

If an employee resigns after two years but before reaching five years of service, they can receive one-third of the total ESB. This partial payment is a way to recognize their contribution, even if they leave before the five-year mark.

4. Reduced ESB for Resignation Between Five and Ten Years

For employees who resign after five years but before completing ten years, the benefit increases. In this case, they’re eligible for two-thirds of the total ESB, a step up from the partial amount provided after two years.

5. Full ESB for Resignation After Ten Years

Employees who stay with their company for ten years or more and then resign are entitled to the full ESB. This full payout is a reward for their long-term commitment to the company.

It’s always a good idea to talk with an HR specialist or a legal advisor to get clear, accurate advice tailored to your situation. Saudi labor laws may change over time, so it’s wise to keep updated on any new regulations.

Planning for Your Financial Future Understanding these conditions helps employees in Saudi Arabia better plan for their financial future. Knowing what you’re entitled to makes it easier to set realistic financial goals and ensure you get the benefits you’ve earned.

What people say about endofservicecalculator.com

I recently used the gratuity calculator on endofservicecalculator.com, and I couldn't be happier with how easy and accurate it is! As someone who's just about to leave my job, I was unsure of how to calculate my end-of-service benefits. The tool provided clear instructions and instantly calculated my gratuity amount. It's user-friendly and saved me a lot of time and stress. I highly recommend it to anyone looking for clarity on their severance pay!

Sarah Al-Mansoori

I stumbled upon endofservicecalculator.com while researching my rights as an employee, and I’m so glad I did! The calculator is simple to use—just enter your employment details, and it does the rest. I appreciated the clear layout and the step-by-step guidance. It helped me understand how my gratuity was calculated based on my contract type and years of service. This site is a must-visit for anyone needing help with their end-of-service benefits!

Ahmed Al-Fahad

As I was preparing to leave my job, I was overwhelmed with how to figure out my end-of-service gratuity. I found the calculator at endofservicecalculator.com, and it made the entire process so much easier. The design is clean and intuitive, making it easy to input my information. In just seconds, I had my gratuity amount, which really helped me plan my finances. Thank you for creating such a fantastic tool—I'll be recommending it to my colleagues!

Fatima Al-Rashid

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Types of Employment Contracts and EOSG Rules in Saudi Arabia

In Saudi Arabia, the type of employment contract plays a significant role in determining End of Service Gratuity (EOSG). Each contract type comes with specific rules and conditions that impact gratuity calculations. Here’s a breakdown of the main contract types:

01

Fixed-Term Contracts

Fixed-term contracts have a clear start and end date. If an employee completes the full term of the contract, the gratuity is calculated based on the total years of service. However, if the contract ends early—whether due to resignation or termination—the gratuity amount depends on the circumstances and is governed by Saudi Labor Law.

02

Indefinite Contracts

Indefinite contracts do not have a specified end date and continue until one party chooses to terminate the agreement. Gratuity under this type of contract is based on the total duration of service. If an employee resigns, the gratuity is prorated. However, resignations within the first 5 years often result in reduced gratuity entitlements.

03

Part-Time Contracts

Part-time contracts apply to employees who work fewer hours than full-time staff. Gratuity in these contracts is calculated proportionally, based on the actual hours worked and the salary earned during the employment period.

04

Probationary Contracts

Probationary contracts are short-term agreements used for trial periods, typically lasting up to 90 days but extendable to 180 days. Employees under probation are generally not entitled to gratuity. However, if they continue working beyond probation and transition to a regular contract, gratuity becomes applicable based on the total duration of service.

Meet Our Talented Team

Our team of experts is passionate about giving you the most accurate info and amazing service. We have people who are super knowledgeable about Saudi labor laws, finances, and making things easy to use. This all means you get the best possible help when calculating your end-of-service gratuity.

Fatima Bin Abdullah leads our team with vision and dedication. She has deep expertise in Saudi labor laws and a passion for simplifying end-of-service gratuity calculations. Her leadership ensures our tools are accurate, reliable, and helpful for everyone.

fatima bin abdullah

CEO

Ahmad Hassan designs the user-friendly interface of our end-of-service gratuity calculator. His creativity and technical skills make the tool simple, smooth, and easy to use, ensuring you get results quickly without any hassle.

ahmad hassan

Web Designer

Uswah Zia specializes in creating clear and helpful content about Saudi labor laws and end-of-service gratuity. Her writing explains complex topics in a way that’s easy to understand, empowering you to make informed decisions.

uswah zia

Content writer

Why Choose Us?

Accurate & Up-to-Date

Our calculator uses the latest Saudi labor laws, ensuring your end-of-service benefits are spot-on. Know exactly what you're owed!

Free for Everyone

Our calculator is completely free to use, for employees, employers, or anyone curious about their end-of-service benefits. No hidden fees!

Your Privacy Matters

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End of Service Gratuity Calculator in Saudi Arabia
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