About End of service gratuity in Saudi Arabia
In Saudi Arabia the gratuity is built from your last wage, including allowances, and how long you served. The rule has two bands: for each of the first five years you earn half a month, and from the sixth year a full month for every year. Part of a year counts in proportion.
A worked example makes it concrete. With a wage of 6,000 and seven years of service, the first five years give 15,000 and the next two give 12,000, so 27,000 in total. If you resign instead of being terminated, only a share is paid: nothing below two years, one third from two to five years, two thirds from five to ten, and the full amount from ten.
The calculator below is set to Saudi Arabia. It is an estimate; your contract and the labour authority decide the final figure.
How to use End of service gratuity in Saudi Arabia
- 01
Enter your last monthly wage including allowances.
- 02
Enter the start date and the end date.
- 03
Say whether the contract ends or you resign.
- 04
Read the length of service and the estimated gratuity.
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Common uses
Frequently asked questions
Which wage do I use in Saudi Arabia?
Use your last monthly wage including basic pay and the allowances that are part of it, not a yearly total. Your payslip or contract shows the figure.
How is resignation different from termination?
On resignation the gratuity is reduced by length of service: none under two years, a third from two up to five, two thirds from five up to ten, and the full amount after ten years. When the employer ends the contract, the full formula applies.
Does a part-year count?
Yes. Time beyond whole years is counted as a fraction of a year, so seven years and six months is treated as seven and a half.
Is the result what I will actually receive?
Treat it as a careful estimate. Contracts, unpaid leave and special cases can change the amount, so confirm with your employer or the labour office before you rely on it. Nothing you type is stored.