End-of-service benefit calculator
Calculate the end-of-service benefit (gratuity) for a private-sector employee in Saudi Arabia in seconds, the same way the Rekaz system calculates settlements: the actual length of service, half a month's wage for each of the first five years then a full month for each year after, and the share due by the reason employment ended.
Enter the details
Enter the details and press "Calculate" to see the result here, with each step of the calculation.
Rekaz works out end of service and the final settlement for every employee
The calculator handles one employee or one case. In Rekaz these figures come from your own employee records, with no spreadsheets or typing things twice.
Calculated from the employee file
Start date, service periods, last wage and the reason employment ended.
Complete final settlement
The benefit, leave balance payment, salary due, less advances and custody.
Monthly end-of-service provision
The liability built up for each employee every month, ready for accounting entries.
How is the end-of-service benefit calculated?
- Half a month's wage for each of the first five years, and a full month's wage for each year after that; parts of a year count pro rata (Article 84).
- When the employee resigns: nothing for less than two years, one third for two to five years, two thirds for more than five but less than ten years, and the full benefit at ten years or more (Article 85).
- The full benefit is due if the employee leaves because of force majeure, if a female employee ends her contract within six months of marriage or three months of giving birth (Article 87), or if the employee leaves in the cases of Article 81.
- It is not due when the contract is terminated under Article 80, or when it ends during probation.
- It is calculated on the last actual wage: the basic wage with fixed allowances such as housing and transport.
Reference: the Saudi Labor Law, its implementing regulations and their amendments.
Frequently asked questions
Does an employee who resigns get an end-of-service benefit?
Yes, after at least two years: one third up to five years, two thirds for more than five years but less than ten, and the full benefit after ten years. With less than two years nothing is due.
Does the last working day count as service?
Yes, the last working day is a day of service: someone who started on 1 January 2022 and last worked on 31 December 2023 completed exactly two years.
Which wage is the benefit calculated on?
The last actual wage the employee received, including the basic wage and the fixed allowances paid every month such as housing and transport.
Does the calculator include payment for the leave balance?
No, leave balance payment is added to the final settlement separately; you can calculate it with the annual leave balance calculator.
Is the calculator's result binding?
The result is a guide under the Labor Law; the employment contract or the organisation's regulations may give the employee better terms.
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