{"id":13366,"date":"2024-01-18T00:23:46","date_gmt":"2024-01-17T20:23:46","guid":{"rendered":"https:\/\/connectresources.ae\/?p=13366"},"modified":"2025-06-05T13:27:40","modified_gmt":"2025-06-05T09:27:40","slug":"end-of-service-benefits-gratuity-calculation-in-the-ksa","status":"publish","type":"post","link":"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/","title":{"rendered":"End of Service Reward Calculator 2024 | Gratuity Calculator Saudi"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #c1121f;color:#c1121f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #c1121f;color:#c1121f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#1_What_is_gratuity_calculation_in_the_KSA\" >1. What is gratuity calculation in the KSA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#2_Who_is_eligible_for_receiving_gratuity_benefits_after_the_termination_of_a_contract\" >2. Who is eligible for receiving gratuity benefits after the termination of a contract?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#3_What_do_the_end-of-service_benefits_include\" >3. What do the end-of-service benefits include?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#4_Key_factors_in_the_gratuity_calculation_process_in_Saudi_Arabia\" >4. Key factors in the gratuity calculation process in Saudi Arabia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#5_How_should_employers_in_Saudi_Arabia_calculate_gratuity_payments_for_employees\" >5. How should employers in Saudi Arabia calculate gratuity payments for employees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/connectresources.ae\/end-of-service-benefits-gratuity-calculation-in-the-ksa\/#6_How_can_Connect_Resources_help_you_learn_more_about_gratuity_calculation_in_the_KSA\" >6. How can Connect Resources help you learn more about gratuity calculation in the KSA?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Just like in many countries in the Middle East, employees in Saudi Arabia are entitled to end-of-service and gratuity benefits. Employers must provide these benefits to employees after the termination of their employment contracts as per the Saudi Labor Law. Knowing about the <\/span><b>gratuity calculation in the KSA<\/b><span style=\"font-weight: 400;\"> is important if you wish to know how much you must pay your employees or know how much you will receive as a worker.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, you will learn everything you need to know about <\/span>gratuity calculation in the KSA <span style=\"font-weight: 400;\">and all related elements. By learning about the process for calculating this benefit, you will be able to complete this task on your own, and if you are an employer, you will be able to accurately calculate it and provide your employees with the sum of gratuity they deserve. Let us observe:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">What is gratuity calculation in the KSA?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Who is eligible for receiving gratuity benefits after the termination of a contract?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> What do the end-of-service benefits include?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Key factors in the gratuity calculation process in Saudi Arabia<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How should <a href=\"https:\/\/connectresources.ae\/oman-labour-law\/\" data-wpil-monitor-id=\"1787\">employers<\/a> in Saudi Arabia calculate gratuity payments for employees?<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> How can Connect Resources help you accurately calculate gratuity in Saudi Arabia?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"1_What_is_gratuity_calculation_in_the_KSA\"><\/span><strong>1. What is gratuity calculation in the KSA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-13388 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-ksa.jpg\" alt=\"\" width=\"1000\" height=\"600\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-ksa.jpg 1000w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/gratuity-calculation-ksa-300x180.jpg 300w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In many countries, you can find laws and regulations related to gratuity payment and <\/span>end of service benefits for eligible employees. Particularly in Saudi Arabia<span style=\"font-weight: 400;\">, all employers are required to process these payments by using an accurate <\/span>Saudi gratuity calculator<span style=\"font-weight: 400;\">. Therefore, this monetary token of acknowledgment paid to employees is an important element of the <a href=\"https:\/\/connectresources.ae\/payroll\/\">payroll functions<\/a> in this country.<\/span><\/p>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27257 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/04\/Colorful-Blobs-Modern-Artisan-Marketing-Retail-X-Frame-Banner-2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Gratuity and <\/span>end-of-service benefits in Saudi Arabia<span style=\"font-weight: 400;\"> are usually paid after the contract is terminated whether by the employer or the employee. These benefits for the employees\u2019 commitment, efforts, and diligence can be a useful element for financial support for them. In addition, you should know that gratuity benefits in <\/span><span style=\"font-weight: 400;\">Saudi Arabia<\/span><span style=\"font-weight: 400;\"> are considered a liability to the employer or company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Saudi <\/span><span style=\"font-weight: 400;\">Labor Law<\/span><span style=\"font-weight: 400;\"> mentions the details related to this particular award that employees must receive after their employment ends. More precisely, <strong>Article 84 of the KSA Labor Law<\/strong> states that employees are entitled to gratuity payment. Also, regarding the <\/span>end-of-service calculation in the KSA<span style=\"font-weight: 400;\">, certain conditions and circumstances must be taken into consideration when calculating this element.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">Labor Law<\/span><span style=\"font-weight: 400;\"> states that this amount must be calculated as the accumulation of half salary per month for the first 5 years. On the other hand, it can also be full salary per month for the following years of service. Learning <\/span>how to calculate end-of-service in the KSA<span style=\"font-weight: 400;\"> is essential for employers and employees to avoid misunderstandings.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Who_is_eligible_for_receiving_gratuity_benefits_after_the_termination_of_a_contract\"><\/span><strong>2. Who is eligible for receiving gratuity benefits after the termination of a contract?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As per the law, any worker in the country is eligible for getting this benefit of <\/span><b>end-of-service in the KSA<\/b><span style=\"font-weight: 400;\">. Nonetheless, there are certain exceptions to this rule that you should be aware of if you work in this country. The only individuals who are not eligible for receiving<\/span><span style=\"font-weight: 400;\"> end-of-service gratuity benefits are the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employees who work in the country without transferring the Iqama sponsorship.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employees who work in the country on a business visit visa.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And employees who work in the country on a consultancy contract, like <a href=\"https:\/\/connectresources.ae\/hr-consultancy\/\">HR consultants<\/a>.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are other factors related to the calculation of these essential benefits. For example, the law states that the calculation starts from the first until the last day of service of the worker.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, to proceed with the <strong>end-of-<\/strong><\/span><b>service benefit calculation<\/b><span style=\"font-weight: 400;\">, you should consider other elements. Below, we will explain the elements that these benefits include, as well as the ones that affect the calculation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_What_do_the_end-of-service_benefits_include\"><\/span><strong>3. What do the end-of-service benefits include?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As per the <\/span>Saudi Labor Law, end-of-service<span style=\"font-weight: 400;\"> benefits include all the fixed benefits that employers pay to employees. Therefore, it includes elements like an employee\u2019s <\/span><span style=\"font-weight: 400;\">basic salary<\/span><span style=\"font-weight: 400;\">, housing, transportation, and mobile allowance as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonetheless, there are other <\/span><span style=\"font-weight: 400;\">types of benefits<\/span><span style=\"font-weight: 400;\"> that are not included in this case. For example, it does not include benefits that are contingent upon other elements, such as bonuses, sales incentives, and ticket allowance.<\/span><\/p>\n<h3><strong>3.1. When must employers pay end-of-service benefits to their employees?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>end-of-service Saudi Labor Law<\/b><span style=\"font-weight: 400;\">, more precisely, Article 88 of the Law, states that employers are obliged to pay these benefits within a particular period. These are the periods to pay gratuity and end-of-service benefits established by the law:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case the employer terminates the worker&#8217;s <\/span><a href=\"https:\/\/connectresources.ae\/everything-you-should-know-about-an-international-employment-contract\/\"><span style=\"font-weight: 400;\">employment contract<\/span><\/a><span style=\"font-weight: 400;\">, the employer must pay within 1 week.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In case the employee resigns, the employer must pay their benefits within 2 weeks.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the employer fails to correctly calculate gratuity<\/span><span style=\"font-weight: 400;\"> or does not pay within the established periods, there will be consequences. For example, the employer may face an SR 10,000 fine (around AED 9,780) for delaying the payment for more than 2 weeks. On the other hand, the employee can protect their rights by filing the case in the Saudi Labor Court.<\/span><\/p>\n<p><a href=\"https:\/\/connectresources.ae\/contact\/?utm_source=contactus&amp;utm_medium=tracking&amp;utm_campaign=calltoaction&amp;utm_id=website\"><img decoding=\"async\" class=\"alignnone wp-image-27238 size-full\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png\" alt=\"\" width=\"6912\" height=\"2304\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2.png 6912w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-300x100.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2023\/03\/2-1024x341.png 1024w\" sizes=\"(max-width: 6912px) 100vw, 6912px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Key_factors_in_the_gratuity_calculation_process_in_Saudi_Arabia\"><\/span><strong>4. Key factors in the gratuity calculation process in Saudi Arabia<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-13389 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/how-to-calculate-gratuity-1.jpg\" alt=\"\" width=\"1100\" height=\"500\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/how-to-calculate-gratuity-1.jpg 1100w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/how-to-calculate-gratuity-1-300x136.jpg 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/07\/how-to-calculate-gratuity-1-1024x465.jpg 1024w\" sizes=\"(max-width: 1100px) 100vw, 1100px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Unlike in the UAE, the type of employment contract does not affect the end-of-service benefits or <\/span>gratuity calculation in the KSA<span style=\"font-weight: 400;\">. In <\/span><span style=\"font-weight: 400;\">Saudi Arabia<\/span><span style=\"font-weight: 400;\">, the Labor Law defines two types of employment contracts, which are fixed contracts and open-ended contracts. But, as we just mentioned, the type of contract does not affect the amount of gratuity that the employees receive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, the circumstances in which the <\/span><span style=\"font-weight: 400;\">employment contract<\/span><span style=\"font-weight: 400;\"> ended is the main factor that must be taken into account. There are only two cases that employers consider when using a <\/span><strong>benefits calculator in the KSA<\/strong><span style=\"font-weight: 400;\">; resignation and termination. Let us now take a look at the guidelines that the law states regarding the <\/span>gratuity calculation in the KSA in these cases.<\/p>\n<h3><strong>4.1. What happens in the case of resignation?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">In case a working relationship ends due to the employee\u2019s resignation, the employee will receive one-third (1\/3) of the award after a service of between 2 and 5 consecutive years. If the employee served between 5 and 10 consecutive years, they will receive two-thirds (2\/3). But if the employee worked for 10 years or more, they will receive the full award.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To understand these rules stated by the <\/span><span style=\"font-weight: 400;\">Labor Law<\/span><span style=\"font-weight: 400;\">, let us summarize them like this:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If an employee served for a company for less than 2 years, they will not receive the gratuity benefit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If they served for more than 2 years and less than 5, they will receive one-third (1\/3) of the gratuity payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employer must entitle the employee to two-thirds (2\/3) of the payment if they served for more than 5 years but less than 10.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If an employee served from 10 years onwards, they shall receive the complete gratuity payment.<\/span><\/li>\n<\/ul>\n<h3><strong>4.2. What happens in the case of the termination of the contract?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>end-of-service Saudi Labor Law<\/b><span style=\"font-weight: 400;\"> states that, as an exception to the provisions of Article 85, employees must receive the full award. As long as an employee leaves the work due to a force majeure beyond their control, they will receive full payment. These are the key rules regarding gratuity benefits in case the employer terminates an <\/span><span style=\"font-weight: 400;\">employee work contract<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employer will not pay any gratuity benefit if the employee worked for less than 1 year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the employee provided their service for more than 1 year and less than 5, they will receive half salary per month per year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The employee will be entitled to the full gratuity payment if they served for more than 5 years.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In all cases, it is imperative to use an effective <\/span><strong>end-of-service<\/strong> <b>benefit calculator in the KSA<\/b><span style=\"font-weight: 400;\">. In this way, there will be no mistakes regarding the amount of money that the employee will receive.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_How_should_employers_in_Saudi_Arabia_calculate_gratuity_payments_for_employees\"><\/span><strong>5. How should employers in Saudi Arabia calculate gratuity payments for employees?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To fully understand how employers should complete the <\/span>gratuity calculation in the KSA<span style=\"font-weight: 400;\">, let us use an example. In this example, the monthly salary of an employee is SR 10,000. The first thing we need to do is identify the employee\u2019s wage per day, which is SR 333.33. Also, we must take into account the number of years worked, and in this case, the employee worked for 7 years.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For the first period (the first 5 years), the gratuity payment will be SR 25,000 (5 years <\/span>\u00d7 10,000 \/ 2 = 25,000).<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Then, we use a Saudi end-of-service calculator<span style=\"font-weight: 400;\"> to calculate the gratuity payment for the next period (the remaining 2 years). The result will be SR 20,000 (2 years <\/span><span style=\"font-weight: 400;\">\u00d7 10,000 = 20,000).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lastly, we calculate the total sum, which will be SR 45,000 (25,000 + 20,000).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Now, if the employee resigned and worked for less than 5 years, the calculation is different. In the following example, an employee\u2019s salary is SR 10,000, and worked for 4 years. We use an <\/span><b>end-of-service calculator in Riyadh<\/b><span style=\"font-weight: 400;\"> and the KSA to calculate the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10,000\/2 <\/span><span style=\"font-weight: 400;\">\u00d7 4 \u00d7 1\/3 = 6,667. Therefore, the employee will receive SR 6,667.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In case the employee resigned and worked between 5 and 10 years, they will receive 2\/3 of the gratuity payment. So, the <\/span>formula to calculate end-of-service benefits<span style=\"font-weight: 400;\"> will be \u00bd salary for X years + full salary for each next year. For example, if the employee resigned after working for 7 years:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first period (the first 5 years): 10,000\/2 <\/span><span style=\"font-weight: 400;\">\u00d7 5 \u00d7 2\/3 = 16,667.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The next period (the remaining 2 years): <\/span><span style=\"font-weight: 400;\">10,000\/2 <\/span><span style=\"font-weight: 400;\">\u00d7 2 \u00d7 2\/3 = 13,333.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Therefore, the total sum will be SR 30,000 (16,667 + 13,333).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the employee resigned after working for more than 10 years, we can use an <\/span>end of benefits calculator in the KSA<span style=\"font-weight: 400;\"> to calculate the following: \u00bd salary per year for the first period and full salary per year for the next period. For example, if the employee resigned after working for 11 years:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The first period (the first 5 years): 10,000\/2 <\/span><span style=\"font-weight: 400;\">\u00d7 5 \u00d7 1\/2 = 25,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The next period (the remaining 6 years): 10,000 \u00d7 6 = 60,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Then, the total sum, which is SR 85,000.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As you can see, learning <\/span><strong>how to compute end-of-service<\/strong> in the KSA is essential. But using an updated calculator to complete the end service benefits calculation in Saudi<span style=\"font-weight: 400;\"> Arabia can be a more efficient method.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_How_can_Connect_Resources_help_you_learn_more_about_gratuity_calculation_in_the_KSA\"><\/span><strong>6. How can Connect Resources help you learn more about gratuity calculation in the KSA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Do you work in <\/span><span style=\"font-weight: 400;\">Saudi Arabia<\/span> or are you a member of a company&#8217;s HR department? Then you should learn about the formula to calculate end-of-service benefits<span style=\"font-weight: 400;\"> to know how much you or your company&#8217;s employees will receive after the termination of the employment contract. Additionally, if you <\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/connectresources.ae\/contact\/\">contact<\/a> Connect Resources<\/span><span style=\"font-weight: 400;\">, our experts will provide you with all the information and guidance you need.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if you own a company in any of the <a href=\"https:\/\/connectresources.ae\/countries\/\">countries<\/a> we list below<\/span><span style=\"font-weight: 400;\">, we can help you manage several <a href=\"https:\/\/connectresources.ae\/hr-services\/\">HR functions<\/a>.<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/united-arab-emirates\/\">United Arab Emirates<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/bahrain\/\">Bahrain<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/kuwait\/\">Kuwait<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/saudi-arabia\/\">Saudi Arabia<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/lebanon\/\">Lebanon<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/jordan\/\">Jordan<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/egypt\/\">Egypt<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/qatar\/\">Qatar<\/a><\/li>\n<li><a href=\"https:\/\/connectresources.ae\/countries\/oman\/\">Oman<\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, HR tasks like <a href=\"https:\/\/connectresources.ae\/payroll\/\">payroll processing<\/a> are one of the many operations we can carry out on your behalf. And if you are looking forward to expanding your business, our <\/span><a href=\"https:\/\/connectresources.ae\/eor-employer-of-record-dubai\/\"><span style=\"font-weight: 400;\">EOR<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/connectresources.ae\/peo-professional-employer-organization-dubai\/\"><span style=\"font-weight: 400;\">PEO<\/span><\/a><span style=\"font-weight: 400;\"> services will help you significantly. Do not hesitate to request more information! Our team works hard to provide you with all the answers and solutions you need in a fast way.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-11621 aligncenter\" src=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png\" alt=\"\" width=\"1239\" height=\"387\" srcset=\"https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color.png 1239w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-300x94.png 300w, https:\/\/connectresources.ae\/wp-content\/uploads\/2022\/05\/logo-connect-resources-color-1024x320.png 1024w\" sizes=\"(max-width: 1239px) 100vw, 1239px\" \/><\/p>\n<p><b>Do you wish to learn more about the gratuity and other end-of-service benefits in Saudi Arabia?<\/b><span style=\"font-weight: 400;\"><strong> <a href=\"https:\/\/connectresources.ae\/\">Connect Resources<\/a><\/strong> can provide you with the guidance you need on this particular matter regardless of your location in the Middle East. If you desire to talk to one of our specialists about <\/span>gratuity calculation in the KSA<span style=\"font-weight: 400;\">, make sure to call us at <\/span><b>+971 43 316 688<\/b><span style=\"font-weight: 400;\"> or send us an email at <\/span><a href=\"mailto:contact@connectresources.ae\"><b>contact@connectresources.ae<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Would you like to find a job in Saudi Arabia or any other Middle Eastern country? Try using <\/span><a href=\"http:\/\/thetalentpoint.com\" target=\"_blank\" rel=\"noopener\"><b>thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\"> to explore a limitless number of <strong><a href=\"https:\/\/connectresources.ae\/career\/\">job opportunities<\/a><\/strong> in the best companies in the region. Furthermore, by sending an email at <\/span><a href=\"mailto:contact@thetalentpoint.com\"><b>contact@thetalentpoint.com<\/b><\/a><span style=\"font-weight: 400;\">, you can contact their recruitment experts to get advice and accomplish your goals.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just like in many countries in the Middle East, employees in Saudi Arabia are entitled to end-of-service and gratuity benefits. Employers must provide these benefits to employees after the termination of their employment contracts as per the Saudi Labor Law. Knowing about the gratuity calculation in the KSA is important if you wish to know&#8230;<\/p>\n","protected":false},"author":115407,"featured_media":13387,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"table_tags":[],"class_list":["post-13366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips-for-employer"],"acf":[],"_links":{"self":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/users\/115407"}],"replies":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/comments?post=13366"}],"version-history":[{"count":9,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13366\/revisions"}],"predecessor-version":[{"id":51955,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/posts\/13366\/revisions\/51955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media\/13387"}],"wp:attachment":[{"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/media?parent=13366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/categories?post=13366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/tags?post=13366"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/connectresources.ae\/wp-json\/wp\/v2\/table_tags?post=13366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}