End-of-Service Gratuity Calculator
Enter your last basic wage and years of service (fractions allowed), then pick the termination reason.
Gratuity payable
SAR 45,000
- Base gratuity
- SAR 45,000
- First 5 years
- 0.5 month/yr
- After 5 years
- 1 month/yr
How it works
Saudi Labor Law: half a month per year for the first five years, then a full month per year beyond. Partial years are prorated. On resignation: <2y = 0, 2–<5y = 1/3, 5–<10y = 2/3, 10y+ = full.
Formula
Base = (wage × 0.5 × first 5y) + (wage × extra years); multiplied by resignation factor if resigning.
Worked example
Wage SAR 10,000, 7 years, terminated: (10,000 × 0.5 × 5) + (10,000 × 2) = SAR 45,000.
FAQ
- Does it include allowances?
- Based on the last wage, which typically includes regular fixed allowances. Check your contract for specifics.
- What about fixed-term contracts?
- Typically end naturally and pay the full gratuity based on years served.
- Is this legally binding?
- Results are indicative only — consult a labor law specialist for edge cases.