1. What is Saudi End-of-Service Benefits?

The Saudi End-of-Service Benefits, commonly known as gratuity, is a legal entitlement for employees in Saudi Arabia upon termination of employment. It is calculated based on the employee's basic salary and length of service according to Saudi labor law.

2. How Does the Calculator Work?

The calculator uses the gratuity calculation formula:

Where:

• \( Basic \) — Basic salary in Saudi Riyals (SAR)
• \( Days\ Served \) — Total number of days worked
• \( Factor \) — Multiplier factor ranging from 0.5 to 1

Explanation: The formula calculates the daily rate from the basic salary, multiplies by the number of days served, and applies the appropriate factor based on employment duration and circumstances.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with Saudi labor laws and fair compensation upon employment termination.

4. Using the Calculator

Tips: Enter basic salary in SAR, total days served, and select the appropriate factor (0.5-1) based on employment circumstances. All values must be valid (salary > 0, days > 0, factor between 0.5-1).

5. Frequently Asked Questions (FAQ)

Q1: What determines the factor value?
A: The factor depends on the employment duration and circumstances - 0.5 for service less than 5 years, 1 for 5+ years, with variations based on termination type.

Q2: Is basic salary the only component considered?
A: Yes, according to Saudi labor law, gratuity is calculated based on the basic salary excluding allowances and bonuses.

Q3: What happens for incomplete years of service?
A: Each full year counts as 365 days, and partial years are calculated based on actual days worked.

Q4: Are there different rules for different employment types?
A: The calculation may vary for limited vs unlimited contracts and for resignation vs termination cases.

Q5: When is gratuity payable?
A: Gratuity is payable upon termination of employment, regardless of the reason for termination (resignation, end of contract, or dismissal).