🇸🇦 Saudi Arabia Gratuity Calculator 2026

Saudi Arabia EOSB formula: Daily rate = Basic Salary ÷ 30. First 5 years: Daily rate × 15 days × Years of service. After 5 years: Daily rate × 30 days × Years of service (beyond 5 years). Total EOSB = Sum of both periods. Example: SAR 10,000 basic salary for 8 years. Daily rate = 10,000 ÷ 30 = SAR 333.33. First 5 years: 333.33 × 15 × 5 = SAR 25,000. Years 6-8: 333.33 × 30 × 3 = SAR 30,000. Total full EOSB = SAR 55,000. If EMPLOYER terminates or contract expires: SAR 55,000 (100%). If YOU resign at 8 years: SAR 55,000 × 2/3 = SAR 36,667 (66.67% for 5-10 year bracket). The calculation uses only basic salary - allowances excluded. Same formula applies throughout KSA including Riyadh, Jeddah, Dammam, and all regions.

Yes, but only 33.33% (one-third) if you resign from unlimited contract. Saudi Labor Law resignation rules: Less than 2 years = Zero EOSB. 2-5 years = 33.33% (one-third). 5-10 years = 66.67% (two-thirds). 10+ years = 100% (full amount). Example at 3 years with SAR 8,000 basic: Calculated EOSB = (8,000 ÷ 30) × 15 × 3 = SAR 12,000. You receive: 12,000 × 1/3 = SAR 4,000 (one-third). You lose SAR 8,000 by resigning. If employer terminates you = full SAR 12,000. Strategic tip: If possible, wait until completing 5 years to jump from 33% to 67%, or better yet, reach 10 years for 100%. Fixed-term contracts usually pay 100% regardless when contract completes. The 2-year minimum makes Saudi stricter than UAE but more generous than Kuwait (3 years).

File Saudi EOSB complaints with MHRSD (Ministry of Human Resources and Social Development). Methods: Online filing through mol.gov.sa portal (fastest), Qiwa platform for digital submission, Labor office branches in major cities (Riyadh, Jeddah, Dammam, etc.), In-person at nearest MHRSD office. Required documents: Employment contract in Arabic (official version), Salary certificates for last 12 months, Bank statements showing salary deposits, Resignation letter and employer acceptance, Your EOSB calculation, Iqama (residence permit) copy. Process: Submit complaint online or in-person, Receive case number for tracking, MHRSD contacts employer within 3-5 days, Conciliation meeting scheduled within 2-3 weeks, If settled: Agreement signed and payment arranged, If not settled: Case referred to labor court. Helpline: 19911 (MHRSD call center, Arabic/English). Cost: FREE to file labor complaints. Most cases resolve within 2-4 months through conciliation or court.

No, EOSB calculation is identical throughout Saudi Arabia - same formula applies in all cities and regions. Federal Saudi Labor Law governs entire kingdom uniformly. Riyadh, Jeddah, Dammam, Eastern Province, all regions use: 15 days per year (first 5 years), 30 days per year (after 5 years), Same resignation rules (2/5/10 year thresholds). However, salary levels vary by city: Riyadh (capital): Often highest salaries, especially government sector. Jeddah (commercial hub): Competitive salaries in trading and healthcare. Dammam/Eastern Province: Oil sector premium, often 10-15% higher than other regions. But EOSB percentage and calculation method identical everywhere. Example: SAR 10,000 salary for 7 years = SAR 47,500 full EOSB whether in Riyadh, Jeddah, Dammam, Abha, or any Saudi city. Regional differences only in: Cost of living, Average salary levels, Industry concentration, Not in legal EOSB calculation or entitlement.

No, only basic salary counts for EOSB calculation in Saudi Arabia. Excluded allowances: Housing allowance (typical 25-35% of package), Transport allowance (SAR 500-1,500), Food allowance, Mobile/communication allowance, Education allowance for children. Also excluded: Overtime pay, Annual bonuses, Commission, Tips. Example Saudi package: Total SAR 15,000 = SAR 10,000 basic + SAR 3,500 housing + SAR 1,500 transport. EOSB calculated on SAR 10,000 ONLY. At 6 years service: Full EOSB = (10,000 ÷ 30) × [(15 × 5) + (30 × 1)] = SAR 35,000. If same total structured as SAR 12,000 basic + SAR 3,000 allowances: Full EOSB = (12,000 ÷ 30) × 105 = SAR 42,000. Difference = SAR 7,000! During Saudi job negotiations, always push for higher basic salary percentage rather than allowances. Common mistake: Accepting lower basic for higher allowances thinking total is same - but it reduces EOSB significantly over time.

Saudi Labor Law requires EOSB payment in final settlement, typically within 7-14 days. If Saudi employer delays: Day 1-7: Send written request to HR/management via email and WhatsApp. Day 8-14: Send formal demand letter via email and registered mail. Day 15+: File official complaint with MHRSD through mol.gov.sa portal or Qiwa. MHRSD action: They contact employer within 3-5 days, Schedule conciliation meeting within 2-3 weeks, Both parties present evidence. If employer refuses: Case automatically moves to labor court, Court schedules hearings within 1-2 months, Final judgment typically within 2-4 months total. Penalties for employer: Fines from MHRSD, Business restrictions and sanctions, Must pay EOSB plus potential compensation, May face Qiwa violations affecting business permits. Keep all documentation: Contract, payslips (12 months minimum), Bank statements, Resignation correspondence, Your EOSB calculation with supporting documents. Success rate very high (85-90%) for legitimate claims with proper documentation.

Calculate specific numbers for your situation. Example scenario: Current Saudi job: SAR 12,000 basic, 7 years completed. Saudi EOSB if stay to 10 years: (12,000 ÷ 30) × [(15 × 5) + (30 × 5)] = SAR 90,000 full. Saudi EOSB if leave now: (12,000 ÷ 30) × [(15 × 5) + (30 × 2)] × 2/3 = SAR 38,000. Lost EOSB by leaving = SAR 52,000 over 3 years = SAR 17,333 per year. UAE offer: AED 15,000 (SAR 15,000) basic, similar role. Annual gain = (15,000 - 12,000) × 12 = SAR 36,000 per year. UAE EOSB 3 years: (15,000 ÷ 30) × 21 × 3 = SAR 31,500 (but 0% if resign under 3 years). Net benefit = SAR 36,000 salary gain - SAR 17,333 EOSB loss = SAR 18,667 annual advantage. Plus UAE offers full EOSB at 5 years vs Saudi's 10 years. In this case, UAE move makes sense. However, consider: Cost of living differences (UAE often 15-20% higher), Family relocation costs, UAE EOSB starts from zero, Currency stability (SAR pegged to USD), Career growth in each country. Run your specific numbers - the EOSB loss in Saudi can be substantial before 10-year mark.

Yes, enhanced EOSB is negotiable in Saudi Arabia, especially for senior positions. Employers cannot pay LESS than legal minimum but can offer MORE. Common in Saudi for: Executive and director-level positions, Specialized technical skills in demand (oil/gas, engineering), Senior management in large corporations (Aramco, SABIC, banks), International executives recruited from abroad, Critical retention positions. Enhanced EOSB examples: "Full EOSB paid even if you resign (no reductions)", "EOSB calculated at 20 days first 5 years instead of 15", "Additional end-of-service bonus of 2-3 months salary", "EOSB reductions waived at all service levels". How to negotiate: Discuss during job offer stage before signing, Get specific enhanced terms written in employment contract (Arabic version), More common with large employers and multinationals, Typical for positions SAR 20,000+ monthly basic salary. Example enhanced clause: "Employee entitled to full end-of-service benefit calculated at rate of 21 days per year for first 5 years and 30 days thereafter, payable in full regardless of resignation or termination." Always document enhanced terms clearly in signed Arabic employment contract as that's the legally binding version in Saudi courts.