Saudi Arabia Gratuity Calculator 2026 - KSA End of Service Benefits

🇸🇦 Saudi Arabia Gratuity Calculator 2026

Calculate your End of Service Benefits (EOSB) in KSA

100% Accurate calculator as per Saudi Labour Law regulations

Home / KSA Gratuity Calculator

Free KSA Gratuity Calculator

Calculate your end of service benefits based on Saudi Labour Law

Enter your basic salary only (excluding allowances)
Complete years worked
Months beyond complete years (0-11)
💰 Your Total Gratuity Amount
SAR 0
📊 Calculation Breakdown
Basic Monthly Salary SAR 0
Service Period 0 years 0 months
Termination Type Employer

📋 How Gratuity Works in Saudi Arabia

Understanding KSA Labour Law end of service benefits for 2026

🏢 Terminated by Employer

  • Less than 2 Years: No gratuity
  • 2-5 Years: 1/3 of full gratuity (half month salary per year × 1/3)
  • 5-10 Years: 2/3 of full gratuity
  • 10+ Years: Full gratuity entitlement

👤 Employee Resignation

  • Less than 2 Years: No gratuity
  • 2-5 Years: 1/3 of calculated gratuity
  • 5-10 Years: 2/3 of calculated gratuity
  • 10+ Years: Full gratuity payment

📐 Calculation Formula

  • First 5 Years: Half month salary per year (0.5 × Salary × Years)
  • After 5 Years: Full month salary per year (1 × Salary × Years)
  • Example: 7 years = (0.5 × 5) + (1 × 2) months
  • No Cap: No maximum limit on gratuity amount

💡 Important Note About Saudi Arabia Gratuity

Saudi Arabia's end of service benefits (EOSB) are governed by the Saudi Labour Law. Unlike UAE, KSA has no maximum cap on gratuity amounts. Gratuity is calculated based on your last drawn basic salary (excluding all allowances). The 2-year minimum service requirement applies to both resignation and termination scenarios. Employers must settle gratuity within 30 days of employment termination. All calculations use basic salary only - housing, transport, and other allowances are excluded.

🧮 Real Gratuity Calculation Examples

Practical scenarios to understand your entitlement

Scenario Basic Salary Service Period Termination Type Gratuity Amount
Example 1 SAR 8,000 3 years Employer Termination SAR 4,000
Example 2 SAR 10,000 6 years Resignation SAR 20,000
Example 3 SAR 12,000 4 years Resignation SAR 8,000
Example 4 SAR 15,000 10 years Employer Termination SAR 112,500
Example 5 SAR 7,000 2 years 6 months Mutual Agreement SAR 8,750

📐 Step-by-Step Calculation Guide

Step 1: Identify your basic monthly salary (exclude all allowances)

Step 2: Calculate first 5 years: Salary × 0.5 × Number of Years (up to 5)

Step 3: Calculate years beyond 5: Salary × 1 × Additional Years

Step 4: Add both amounts for full gratuity

Step 5: Apply reduction factor based on termination type and years of service

📑 Gratuity by Termination Scenario

How different exit types affect your end of service benefits

✅ Full Gratuity Entitlement

  • Employer termination (no misconduct) after 10+ years
  • Employee resignation after 10+ years
  • Retirement at retirement age
  • Mutual agreement with full settlement
  • Contract expiry after 10+ years

⚖️ Partial Gratuity (2/3)

  • Employer termination: 5-10 years service
  • Employee resignation: 5-10 years service
  • Calculated as 2/3 of full gratuity amount

⚠️ Reduced Gratuity (1/3)

  • Employer termination: 2-5 years service
  • Employee resignation: 2-5 years service
  • Calculated as 1/3 of full gratuity amount

❌ No Gratuity

  • Service less than 2 years
  • Termination due to misconduct
  • Absconding from work
  • Violation of contract terms
  • Criminal conviction related to work

✅ Key Facts About KSA Gratuity

Essential information about end of service benefits in Saudi Arabia

💵 What's Included

  • Basic salary only
  • Fixed monthly wage
  • Contractual base pay
  • Last drawn salary used

❌ What's Excluded

  • Housing allowance
  • Transport allowance
  • Food allowance
  • Phone/utilities allowance
  • Overtime pay
  • Bonuses & commissions
  • Annual ticket allowance

⏱️ Payment Timeline

  • Within 30 days of last working day
  • Along with final settlement
  • Includes unused annual leave
  • Notice period salary if applicable

📜 Legal Rights

  • Protected by Saudi Labour Law
  • No maximum cap on amount
  • Cannot be waived in contract
  • File complaint with HRSD if unpaid

⚖️ What If Employer Doesn't Pay?

If your employer fails to pay gratuity within 30 days, you can file a complaint with the Ministry of Human Resources and Social Development (HRSD) through their online portal. The complaint process is free and can be done via the HRSD website or mobile app. Keep all employment documents including contract, salary slips, resignation letter, and termination notice. The ministry typically resolves disputes within 21 working days. Employers who violate gratuity payment rules face penalties and potential business license suspension.

❓ Frequently Asked Questions

Common questions about gratuity in Saudi Arabia

How is gratuity calculated in Saudi Arabia? +
Gratuity in Saudi Arabia is calculated based on your basic salary and years of service. For the first 5 years, you receive half a month's salary for each year of service (0.5 × Basic Salary × Years). After 5 years, you receive a full month's salary for each additional year (1 × Basic Salary × Years). For example, if you work 7 years with SAR 10,000 basic salary: First 5 years = 10,000 × 0.5 × 5 = SAR 25,000; Additional 2 years = 10,000 × 1 × 2 = SAR 20,000; Total = SAR 45,000. This may be reduced to 2/3 or 1/3 based on service period and termination type.
What is the minimum service period to get gratuity in KSA? +
You must complete at least 2 years of continuous service to be eligible for end-of-service gratuity in Saudi Arabia. This is different from UAE which requires only 1 year. Employees who work less than 2 years receive no gratuity, regardless of whether they resign or are terminated. The 2-year requirement applies to both Saudi nationals and expatriate workers. Partial years between 2-5 years still count proportionally (e.g., 2 years 6 months), but you must cross the 2-year threshold first to qualify for any payment.
Is there a maximum limit on gratuity in Saudi Arabia? +
No, there is no maximum cap on gratuity amounts in Saudi Arabia. Unlike UAE which caps gratuity at 2 years of basic salary, KSA has no upper limit. This means if you work for 20-30 years, your gratuity continues to accumulate based on the formula (0.5 month for first 5 years, 1 month for years after). For example, 20 years of service at SAR 15,000 basic salary would yield: (15,000 × 0.5 × 5) + (15,000 × 1 × 15) = SAR 37,500 + SAR 225,000 = SAR 262,500 total gratuity, with no reduction for exceeding any cap.
Do I get full gratuity if I resign in Saudi Arabia? +
It depends on your years of service. If you resign after 10+ years, you receive full gratuity. If you resign between 5-10 years, you receive 2/3 of the calculated gratuity. If you resign between 2-5 years, you receive only 1/3 of the gratuity. If you resign before completing 2 years, you receive nothing. For example, with 6 years service at SAR 10,000 basic: Full gratuity = SAR 35,000; Your entitlement = 2/3 × 35,000 = SAR 23,333. Plan your resignation timing carefully if you're close to 5 or 10-year milestones to maximize your benefits.
Is gratuity calculated on basic salary or total salary in KSA? +
Gratuity is calculated only on basic salary, not total compensation package. All allowances are excluded including housing allowance, transport allowance, food allowance, utilities, phone bills, overtime, bonuses, commissions, and annual ticket allowance. For example, if your total salary is SAR 15,000 (SAR 8,000 basic + SAR 7,000 allowances), gratuity is calculated on SAR 8,000 only. Always check your employment contract or Gosi registration to identify your official basic salary component. Some employers structure packages with low basic salary to reduce gratuity liability - negotiate for higher basic salary proportion during hiring.
When should my employer pay gratuity in Saudi Arabia? +
Employers must pay gratuity within 30 days from your last working day as per Saudi Labour Law. Payment should be made by bank transfer to your salary account. If employer delays beyond 30 days, you can file complaint through HRSD (Ministry of Human Resources and Social Development) online portal or mobile app. Gratuity is paid along with final settlement including unused annual leave balance, notice period salary if applicable, and any outstanding dues. Keep copies of employment contract, Iqama, salary slips, resignation acceptance, and termination letter as supporting documents for any disputes.
Is gratuity taxable in Saudi Arabia? +
No, end-of-service gratuity is not taxable in Saudi Arabia. KSA does not impose personal income tax on individuals (both Saudi nationals and expatriates), so you receive your full calculated gratuity amount without any tax deductions. This is a significant advantage of working in Saudi Arabia. However, if you're transferring your gratuity to your home country, check local tax laws there as some countries tax worldwide income including foreign employment benefits. Consult a tax advisor in your home country regarding repatriation tax implications.
Can I calculate gratuity for partial years in Saudi Arabia? +
Yes, gratuity includes proportional calculation for incomplete years. If you work 4 years and 8 months, you receive full gratuity for 4 complete years plus proportional amount for 8 months. Formula: (Basic Salary × 0.5 × 4) + (Basic Salary × 0.5 × 8/12). Example with SAR 9,000 basic salary for 4 years 8 months: 4 years = 9,000 × 0.5 × 4 = SAR 18,000; 8 months = 9,000 × 0.5 × (8/12) = SAR 3,000; Total = SAR 21,000. Then apply reduction factor if applicable (1/3 if resignation with 2-5 years service = SAR 7,000 final gratuity).
What happens to gratuity if I get terminated for misconduct? +
If you are terminated for misconduct as defined in Saudi Labour Law Article 80, you forfeit your entire gratuity entitlement regardless of service years. Misconduct includes: assault on employer/colleagues, willful damage to company property, disclosure of confidential information, being drunk at work, absconding for more than 20 days, abusing position for personal gain, and conviction of crime involving dishonesty. However, employer must prove misconduct and follow proper termination procedures. If you believe termination was unjust, you can appeal to HRSD. Minor infractions that don't meet Article 80 criteria should not result in gratuity forfeiture - only serious violations listed in the law.