Saudi Arabia Gratuity Calculator 2026 (End of Service Benefits Calculator)
Understanding how the Saudi Arabia Gratuity Calculator works is essential for accurately estimating your end of service benefits (EOSB). Whether your employment ends through resignation, contract completion, or termination, your gratuity is calculated based on your actual wage, total service period, and the applicable provisions of the Saudi Labour Law. Using a reliable calculator helps simplify this process and provides a clear estimate of your expected entitlement.
This article provides a structured overview of how gratuity is calculated in Saudi Arabia, including the applicable formulas, salary components, and key legal provisions such as Articles 84, 85, 80, and 81. It also includes practical examples, summary tables, and common calculation mistakes to help ensure accuracy. The goal is to give you a clear, professional understanding of your gratuity entitlement before your final settlement.
How to Use the Saudi Arabia Gratuity Calculator (Step-by-Step Guide)
Using our Saudi Arabia Gratuity Calculator is simple. Enter your employment details, and the calculator will instantly estimate your end of service gratuity based on the applicable Saudi Labour Law.
- Enter your last monthly actual wage.
- Select your contract type and reason for leaving.
- Add your total years, months, and days of service.
- Click Calculate Gratuity to view your estimated result.
- Review your gratuity amount and calculation breakdown.
Note: This Saudi Gratuity Calculator provides an estimated result for informational purposes. Your final settlement depends on your employment contract and the applicable Saudi Labour Law.
What Is the Saudi Arabia Gratuity Calculator?
A Saudi Arabia Gratuity Calculator is a free online tool that helps you estimate your End of Service Benefits (EOSB) under the Saudi Labour Law. Simply enter your last monthly wage, service period, contract type, and reason for leaving to get an instant Saudi Arabia gratuity calculation. It saves time, reduces manual errors, and gives you a clear estimate of your gratuity before your final settlement.
What Is End of Service Gratuity (EOSB) in Saudi Arabia Gratuity Calculator
End of Service Gratuity (EOSB) is the compensation an eligible employee receives when their employment ends in Saudi Arabia. The gratuity amount is calculated according to the Saudi Labour Law and is based on factors such as your last monthly wage, total years of service, and whether you resigned, completed your contract, or were terminated.
Why Use the Saudi Arabia Gratuity Calculator for Accurate EOSB
A Saudi Gratuity Calculator makes the gratuity calculation in Saudi Arabia quick, simple, and more accurate. Instead of calculating your benefits manually, you receive an instant estimate with a clear breakdown, making it easier to understand your expected end-of-service payment and plan your finances.
Who Can Use This Calculator?
This End of Service Gratuity Calculator Saudi Arabia is designed for employees, expatriates, employers, HR professionals, and payroll teams. Whether you want to calculate gratuity in Saudi Arabia after a resignation, contract completion, or termination, this tool provides a fast and reliable estimate based on the information you enter.
How Is Saudi Gratuity Calculated?
The gratuity calculation in Saudi Arabia depends on three main factors: your actual wage, total eligible service period, and the reason your employment ended. Once these details are entered, our Saudi Arabia Gratuity Calculator automatically applies the relevant Saudi Labour Law rules and estimates your end-of-service gratuity within seconds.
Step 1: Calculate the Actual Wage
The first step is to determine your actual wage, which is the salary used to calculate your gratuity. This usually includes your basic salary along with any fixed monthly allowances that are part of your employment contract.
Step 2: Calculate the Eligible Service Period
Next, your total service period is calculated in years, months, and days. If applicable, any period that is not counted under the Saudi Labour Law is excluded to ensure a more accurate Saudi Arabia gratuity calculation.
Step 3: Apply the Article 84 Formula
After confirming your wage and service period, the calculator applies Article 84 of the Saudi Labour Law. Employees generally earn half a month’s wage for each of the first five years and one full month’s wage for every additional year of service.
Step 4: Apply Article 85 (If You Resigned)
If you left your job voluntarily, Article 85 may reduce your gratuity depending on your years of service. The calculator automatically applies the correct entitlement, so you don’t need to calculate the percentage yourself.
Step 5: View Results in Saudi Arabia Gratuity Calculator
Finally, the Saudi Gratuity Calculator combines all the information and displays your estimated end of service gratuity, along with a clear calculation breakdown to help you understand how the final amount was determined.
Saudi Arabia Gratuity Calculator Formula (Saudi Labour Law)
The Saudi Labour Law gratuity calculation follows a simple structure:
- First 5 years: Half a month’s actual wage for each completed year.
- After 5 years: One full month’s actual wage for each additional year.
- If you resign: Any applicable reduction under Article 85 is applied to the final amount.
Our Saudi Arabia Gratuity Calculator performs these calculations automatically, giving you a quick and reliable estimate without the need for manual calculations.
Who Is Eligible for Saudi End of Service Benefits?
Employees may qualify for Saudi End of Service Benefits (EOSB) if they meet the eligibility conditions set out in the Saudi Labour Law. Your entitlement mainly depends on your length of service and the reason your employment ended. Whether you resigned, completed your contract, or were terminated, our Saudi Arabia Gratuity Calculator estimates your gratuity based on the information you provide.
Eligible Employees in Saudi Arabia Gratuity Calculator
Most employees working under the Saudi Labour Law, including Saudi nationals and expatriates, may be entitled to end of service gratuity when their employment ends. Eligibility is determined according to the applicable labour law provisions and the employee’s service history.
Minimum Service Requirement in Saudi Gratuity
The minimum service period required depends on how your employment ends. In general, employees whose employment is terminated or whose contract expires become eligible after completing the required service period under the Saudi Labour Law. Employees who resign voluntarily must also meet the applicable service requirements before receiving gratuity.
Resignation Eligibility in Saudi Arabia Gratuity
If you resign, your gratuity entitlement depends on your completed years of service. In some cases, the gratuity may be reduced according to Article 85 of the Saudi Labour Law. Our Saudi Gratuity Calculator automatically applies the appropriate entitlement based on your service period.
Termination Rules in Saudi Arabia Gratuity Calculator
Employees whose employment is terminated by the employer are generally entitled to end of service benefits, provided they satisfy the applicable legal conditions. The gratuity is calculated according to the employee’s eligible service period and actual wage.
Contract Completion in Saudi Arabia Gratuity Calculator
When a fixed-term employment contract ends on its agreed completion date, eligible employees are generally entitled to receive their Saudi Arabia end of service gratuity. The final amount is calculated using the same legal framework based on wage and years of service.
What Salary Is Used to Calculate Saudi Gratuity?
The Saudi Arabia gratuity calculation is based on your actual wage, which includes the salary components recognized under the Saudi Labour Law. Using the correct wage ensures a more accurate estimate of your end of service gratuity.
Included Salary Components in Saudi Arabia Gratuity Calculator
The Saudi Gratuity Calculator generally includes the following salary components:
- Basic salary
- Fixed housing allowance
- Fixed transportation allowance
- Other fixed contractual allowances
These payments form part of the employee’s actual wage used for the gratuity calculation.
Excluded Salary Components in Saudi Arabia Gratuity Calculator
Variable or one-time payments are generally excluded, including:
- Bonuses
- Overtime pay
- Sales commissions
- Performance incentives
- Other variable allowances
Our Saudi Arabia Gratuity Calculator automatically uses the appropriate salary components to provide a reliable estimate of your end-of-service benefits.
Saudi Arabia Gratuity Calculator Rules for Different Scenarios
Your Saudi Arabia gratuity calculation may vary depending on how your employment ends. Under the Saudi Labour Law, resignation, termination, contract completion, and certain legal situations can affect your end-of-service benefits. Our Saudi Gratuity Calculator automatically applies the appropriate rules based on the employment scenario you select.
Resignation Gratuity Rules (Article 85)
If you resign voluntarily, your gratuity entitlement is determined by Article 85 of the Saudi Labour Law. The amount you receive depends on your completed years of service, and in some cases, your gratuity may be reduced. The calculator automatically applies the correct entitlement based on your service period.
Termination by Employer
Employees whose employment is terminated by the employer are generally entitled to end of service gratuity, provided they meet the applicable legal conditions. The gratuity is calculated using the employee’s actual wage and eligible service period.
Contract Completion
If your fixed-term contract ends on its agreed completion date, you may be entitled to receive your Saudi Arabia end of service gratuity. The final amount is calculated according to the applicable Saudi Labour Law provisions.
Article 80 Cases (Loss of Gratuity)
In certain situations covered by Article 80, an employer may terminate an employee without gratuity. These cases apply only under specific legal circumstances defined by the Saudi Labour Law.
Article 81 Cases
Article 81 allows employees to leave their job without losing their legal rights in certain situations. If the required legal conditions are met, the employee may remain eligible for end-of-service benefits.
Special Cases Under Saudi Labour Law
The Saudi Labour Law also provides special provisions for certain situations that may affect gratuity entitlement. These cases are assessed according to the applicable legal rules and the employee’s individual circumstances.
Saudi Gratuity Calculation Examples
The following Saudi gratuity calculation examples show how end of service gratuity in Saudi Arabia is calculated under different employment scenarios. These examples use simple figures to help you understand how the Saudi Arabia Gratuity Calculator estimates your end-of-service benefits.
Example 1: Saudi Gratuity Calculation After 3 Years of Resignation
Employee Details
- Actual Monthly Wage: SAR 10,000
- Service Period: 3 Years
- Employment Ends: Resignation
Calculation
- Full gratuity = 3 × ½ × SAR 10,000 = SAR 15,000
- Under Article 85, employees with 2 to less than 5 years of service receive one-third of the full gratuity.
Estimated Gratuity: SAR 5,000
Example 2: Saudi Gratuity Calculation After 6 Years of Termination
Employee Details
- Actual Monthly Wage: SAR 10,000
- Service Period: 6 Years
- Employment Ends: Termination by Employer
Calculation
- First 5 years = 5 × ½ × SAR 10,000 = SAR 25,000
- Remaining 1 year = 1 × SAR 10,000 = SAR 10,000
Estimated Gratuity: SAR 35,000
Example 3: Saudi Gratuity Calculation After 5 Years of Contract Completion
Employee Details
- Actual Monthly Wage: SAR 8,000
- Service Period: 5 Years
- Employment Ends: Contract Completion
Calculation
- 5 × ½ × SAR 8,000 = SAR 20,000
Estimated Gratuity: SAR 20,000
Example 4: Saudi Gratuity Calculation for More Than 10 Years of Service
Employee Details
- Actual Monthly Wage: SAR 12,000
- Service Period: 12 Years
- Employment Ends: Resignation
Calculation
- First 5 years = 5 × ½ × SAR 12,000 = SAR 30,000
- Remaining 7 years = 7 × SAR 12,000 = SAR 84,000
- Total gratuity = SAR 114,000
Since the employee completed 10 or more years of service, 100% of the gratuity is payable under Article 85.
Estimated Gratuity: SAR 114,000
Example 5: Saudi Gratuity Calculation for Partial Year Service
Employee Details
- Actual Monthly Wage: SAR 9,000
- Service Period: 5 Years 6 Months
- Employment Ends: Termination by Employer
Calculation
- First 5 years = 5 × ½ × SAR 9,000 = SAR 22,500
- Additional 6 months = 6 ÷ 12 × SAR 9,000 = SAR 4,500
Estimated Gratuity: SAR 27,000
Example 6: Saudi Gratuity Calculation Using Actual Wage
Employee Details
- Basic Salary: SAR 8,000
- Fixed Housing Allowance: SAR 1,500
- Fixed Transportation Allowance: SAR 500
- Actual Wage: SAR 10,000
- Service Period: 7 Years
- Employment Ends: Termination by Employer
Calculation
- First 5 years = 5 × ½ × SAR 10,000 = SAR 25,000
- Remaining 2 years = 2 × SAR 10,000 = SAR 20,000
Estimated Gratuity: SAR 45,000
Note: This example uses an actual wage of SAR 10,000, which includes the employee’s basic salary and eligible fixed allowances under the Saudi Labour Law.
Saudi Gratuity Calculation Tables
The following tables provide a quick overview of the Saudi Arabia gratuity calculation under the Saudi Labour Law. They summarize the key gratuity rules, helping employees understand their end of service gratuity based on their years of service and employment scenario.
Gratuity by Years of Service
| Years of Service | Gratuity Rate |
| First 5 years | Half month’s actual wage for each completed year |
| More than 5 years | One month’s actual wage for each additional completed year |
Resignation Entitlement Table
| Years of Service | Gratuity Entitlement |
| Less than 2 years | No gratuity |
| 2 to less than 5 years | One-third of the full gratuity |
| 5 to less than 10 years | Two-thirds of the full gratuity |
| 10 years or more | Full gratuity |
Saudi Arabia Gratuity Calculator Rules Summary
| Employment Scenario | Gratuity Rule |
| Resignation | Article 85 entitlement applies based on years of service |
| Termination by Employer | Eligible employees generally receive full gratuity |
| Contract Completion | Gratuity is calculated based on eligible service and actual wage |
| Article 80 Cases | Gratuity may not be payable in specific legal circumstances |
| Article 81 Cases | Employees may retain gratuity rights if the legal conditions are met |
Saudi Labour Law Articles Explained
| Saudi Labour Law Article | Summary |
| Article 84 | Explains how end of service gratuity is calculated based on the employee’s actual wage and eligible years of service. |
| Article 85 | Defines the gratuity entitlement for employees who resign voluntarily according to their completed years of service. |
| Article 80 | Lists specific legal situations where an employee may lose the right to receive gratuity. |
| Article 81 | Allows employees to leave their job with full legal rights if the conditions specified under the Saudi Labour Law are met. |
| Article 88 | Covers the employer’s responsibility for completing the employee’s final settlement, including any eligible gratuity payments. |
Common Saudi Gratuity Calculation Mistakes
Even a small mistake can affect your Saudi Arabia gratuity calculation and produce an incorrect result. Before calculating your end of service gratuity, make sure you avoid these common errors.
Using Gross Salary Instead of Actual Wage
Many employees mistakenly use their total monthly package when calculating gratuity. Under the Saudi Labour Law, gratuity is based on the employee’s actual wage, which includes the basic salary and eligible fixed allowances, not every payment received.
Calculating the Wrong Service Period
Your gratuity depends on your eligible years of service. Using incorrect joining or leaving dates, or excluding eligible service, can lead to an inaccurate gratuity calculation in Saudi Arabia.
Applying the Wrong Resignation Percentage
Employees who resign do not always receive the full gratuity amount. Article 85 applies different entitlement percentages based on the completed years of service, so using the wrong percentage can significantly change the final result.
Ignoring Partial Years of Service
Eligible months and days beyond completed years should also be included in the calculation. Ignoring partial service may reduce the final Saudi gratuity amount.
Selecting the Wrong Employment Scenario
Always choose the correct reason for leaving, such as resignation, termination, or contract completion. Each employment scenario follows different Saudi Labour Law provisions and may affect your gratuity entitlement.
Saudi Arabia Gratuity Calculator – Frequently Asked Questions
1. How Is Gratuity Calculated in Saudi Arabia?
Gratuity calculation in Saudi Arabia is based on the employee’s actual wage, eligible years of service, and the reason for leaving employment. The calculation follows the relevant provisions of the Saudi Labour Law
2. What Is the Minimum Service Required for Saudi Arabia Gratuity?
The minimum service required for Saudi Arabia gratuity depends on whether the employment ends through resignation, termination, or contract completion under the Saudi Labour Law.
3. Is Saudi Arabia Gratuity Calculated on Basic Salary or Actual Wage?
Saudi Arabia gratuity is calculated using the employee’s actual wage, which includes the basic salary and eligible fixed allowances.
4. Are Fixed Allowances Included in Saudi Gratuity Calculation?
Yes. Eligible fixed allowances are generally included in the Saudi gratuity calculation, while variable payments, bonuses, and overtime are usually excluded.
5. Can I Receive Saudi End of Service Gratuity After Resignation?
Yes. Employees may receive Saudi end of service gratuity after resignation if they meet the eligibility requirements under the Saudi Labour Law.
6. How Are Partial Years Counted in Saudi Arabia Gratuity Calculation?
Completed months and days beyond full years are generally calculated on a proportional basis when determining the final Saudi Arabia gratuity calculation.
7. When Can an Employee Lose Saudi End of Service Benefits?
An employee may lose Saudi end of service benefits in specific situations covered under Article 80 of the Saudi Labour Law.
8. Does the Employment Contract Affect Saudi Gratuity Calculation?
Yes. The contract type and the reason for ending employment can affect the final Saudi gratuity calculation under the applicable Labour Law.
9. When Is Saudi End of Service Gratuity Paid?
Employers should pay the employee’s final settlement, including any eligible Saudi end of service gratuity, within the timeframe required by the Saudi Labour Law.
10. Is This Saudi Arabia Gratuity Calculator Accurate?
Our Saudi Arabia gratuity calculator provides an estimated result based on the information you enter and the applicable Saudi Labour Law. For complex cases, professional legal advice may be appropriate.
Why Use Our Saudi Arabia Gratuity Calculator (Final Summary)
Our Saudi Arabia gratuity calculator helps you estimate your end of service gratuity quickly and accurately based on the applicable Saudi Labour Law. By entering a few employment details, you can calculate your estimated gratuity without manually applying formulas or checking different labour law provisions.
Whether you are planning to resign, completing your contract, or leaving after termination, this calculator provides a simple way to understand your potential gratuity entitlement. While the result is intended as an estimate, it serves as a reliable starting point before receiving your employer’s final settlement.
You can also explore our detailed guides for other GCC countries, including the UAE Gratuity Guide, Kuwait Gratuity Guide, Qatar Gratuity Guide, Bahrain Gratuity Guide and Oman Gratuity Guide, to better understand how end-of-service benefits and labour laws differ across the region.