Ksa End Of Service Calculator

Gratuity Calculation Formula:

\[ Gratuity = \frac{Basic}{30} \times Days \times \begin{cases} 0.5 & \text{first 5 years} \\ 1 & \text{after 5 years} \end{cases} \]

Basic Salary (SAR):

SAR/month

Service Days:

days

Service Years:

Gratuity Amount:

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1. What is KSA End of Service Gratuity?

The KSA End of Service Gratuity is a legal entitlement for employees in the Kingdom of 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 formula:

\[ Gratuity = \frac{Basic}{30} \times Days \times \begin{cases} 0.5 & \text{first 5 years} \\ 1 & \text{after 5 years} \end{cases} \]

Where:

\( Basic \) — Basic monthly salary in SAR
\( Days \) — Total service days
\( 0.5 \) — Multiplier for first 5 years of service
\( 1 \) — Multiplier for service after 5 years

Explanation: The calculation converts monthly basic salary to daily rate by dividing by 30, then multiplies by total service days and applicable multiplier based on service duration.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation ensures employees receive their rightful end-of-service benefits as per Saudi labor law. It helps both employers and employees understand financial obligations and entitlements.

4. Using the Calculator

Tips: Enter basic monthly salary in SAR, total service days, and select whether service is less than or more than 5 years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in basic salary for gratuity calculation?
A: Basic salary typically excludes allowances, bonuses, and other benefits. Only the fixed basic salary component is used for gratuity calculation.

Q2: How are service days calculated?
A: Service days include all calendar days from employment start date to end date, including weekends and public holidays.

Q3: What happens for service between 2-5 years?
A: For service between 2-5 years, the employee is entitled to one-third of the gratuity amount calculated with 0.5 multiplier.

Q4: Are there any exceptions to this calculation?
A: Yes, calculation may vary for resignation vs termination cases, and specific provisions apply for incomplete years of service.

Q5: Is this calculator applicable to all employment sectors?
A: While based on Saudi labor law, specific sectors like government and some private companies may have different gratuity schemes.