1. What is KSA End of Service Gratuity?

The KSA (Kingdom of Saudi Arabia) End of Service Gratuity is a legal entitlement for employees upon termination of employment. It is calculated based on the employee's basic salary, length of service, and applicable factor as per Saudi labor law.

2. How Does the Calculator Work?

The calculator uses the KSA gratuity formula:

Where:

• \( Basic \) — Basic monthly salary in Saudi Riyals (SAR)
• \( Days \) — Total number of service days
• \( Factor \) — 0.5 or 1 based on service duration and termination type

Explanation: The formula calculates daily wage by dividing basic salary by 30, then multiplies by service days and applicable factor to determine total gratuity amount.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures compliance with Saudi labor law, protects employee rights, and helps employers budget for termination costs properly.

4. Using the Calculator

Tips: Enter basic monthly salary in SAR, total service days, and select the appropriate factor (0.5 for service less than 5 years, 1 for 5+ years or specific termination cases).

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between factor 0.5 and 1?
A: Factor 0.5 applies for service less than 5 years, while factor 1 applies for service of 5 years or more, or in cases of unfair dismissal.

Q2: Is basic salary the same as total salary?
A: No, basic salary excludes allowances, bonuses, and other benefits. Only basic salary is used for gratuity calculation in KSA.

Q3: How are service days calculated?
A: Service days include all calendar days from employment start date to termination date, including weekends and holidays.

Q4: Are there any exceptions to gratuity payment?
A: Gratuity may not be payable in cases of gross misconduct or resignation before completing 2 years of continuous service.

Q5: Is gratuity taxable in Saudi Arabia?
A: No, end of service benefits are generally not subject to income tax in Saudi Arabia.