End-of-Service Gratuity Calculator
Calculate your end-of-service gratuity accurately per labor law in Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain. Enter your salary and service period — get instant free results.
Comprehensive End of Service Gratuity Guide: Regulations & Formulas
End of Service Gratuity is a statutory entitlement established under Saudi and GCC labor laws to guarantee financial security for workers upon the conclusion of employment relationships. The computation hinges precisely on duration of tenure, mode of contract cessation, and the final wage earned.
Resignation Entitlement Matrix (Saudi Labor Law Article 85)
| Service Duration | Entitlement Proportion | Legal Note |
|---|---|---|
| Less than 2 years | No entitlement (0%) | Resignation scenario only |
| 2 to 5 years | One-third (33.3%) | Based on half-month wage per year |
| 5 to 10 years | Two-thirds (66.6%) | Applied over total elapsed period |
| 10 years or more | Full Gratuity (100%) | Full wage per year after year 5 |
Frequently Asked Questions About Gratuity
How is End of Service Gratuity calculated under Saudi Labor Law (Article 84)?
Gratuity is calculated at the rate of half a month's wage for each of the first five years of service, and one full month's wage for each subsequent year. Fractions of a year are calculated on a pro-rata basis, using the last received wage.
What is the difference between resignation and termination (Article 85)?
If an employee resigns, they receive one-third of the gratuity if service is between 2 and 5 years, two-thirds between 5 and 10 years, and the full gratuity if service exceeds 10 years. In contrast, termination by the employer or completion of a fixed-term contract entitles the worker to the full gratuity regardless.
Is gratuity calculated on basic salary or total package?
Gratuity is calculated on the 'actual last wage', which includes the basic salary plus all regular fixed allowances (such as housing allowance and transportation allowance) stipulated in the employment contract.
Can female employees receive full gratuity upon resignation?
Yes, female employees are legally entitled to the full end-of-service gratuity if they resign within six months of marriage or within three months of childbirth.