An End of Service Calculator is an online tool designed to compute the gratuity or end of service benefits owed to employees in Saudi Arabia upon resignation, termination, or contract completion. According to Article 85 of the Labor Law, if the contract is terminated due to the employee’s resignation, they are not entitled to the full end-of-service gratuity unless their service duration exceeds 10 years. An End of Service Calculator is a vital tool for employees and employers in Saudi Arabia to calculate gratuity accurately and ensure compliance with the Saudi Labor Law.
Saudi Labor Law Working Hours 2025
- Moreover, the employer is fined SR 10,000 for delaying the ESB by more than 2 weeks.
- An End of Service Calculator for Saudi Arabia is a vital tool for employees and employers, calculating the end-of-service benefits (EOSB) or gratuity as mandated by the Saudi Labor Law (Article 84).
- The end-of-service benefits calculator provided by the Ministry of Human Resources and Social Development works automatically according to the worker’s entered data so that the benefits value is calculated immediately.
- If an employee resigns under Article 81 of Saudi Labor Law, he can still receive his full end-of-service benefits.
- Scale HR operations, manage talent, control spend – all in one platform with Jisr.
- The following screenshot has been taken from the ESB calculator given above.
According to Article 88 of Saudi Labor Law, an employer is obliged to pay end-of-service benefits within; Article 87 of Saudi Labor Law states that the following employees will also get a total ESB award. We have incorporated this calculation into the end-of-service calculator given above. An employee resigned after working for 11 years in a company. An employee resigned after working for 7 years in a company.
Steps to calculate end of Service in Saudi Arabia
The following screenshot has been taken from the ESB calculator given above. We have developed this ESB calculator ourselves and tested it several times. Every employee working in KSA is entitled to get End of Service Benefits at the end of his employment term. This service comes within the framework of the ministry’s ongoing commitment to improving the quality of services provided and enhancing the level of interaction with beneficiaries through official digital channels
It also aims to enhance the effectiveness of electronic communication with ministry officials by enabling beneficiaries to access the service of communicating with His Excellency the Minister.
What is an End of Service Calculator?
If an employee resigns under Article 81 of Saudi Labor Law, he can still receive his full end-of-service benefits. An employee resigned before his next contract renewal after completing his two-year contract with the company. In other words, the ESB will be calculated in the same way as if the employee was terminated. A worker who resigns after completing 10 years in a company will get his full end-of-service benefits award as per Article 85 of Saudi Labor Law i.e. There are 7 different scenarios that have an impact on the calculation of the end-of-service benefits in case of resignation.
Iqama Expiry Penalties in Saudi Arabia
Moreover, the employer is fined SR 10,000 for delaying the ESB by more than 2 weeks. If the ESB is not paid within 2 weeks, the employee has the right to file a case in the Saudi Labor Court. However, those benefits, contingent upon other factors, such as sales incentives, ticket allowance, and bonuses, are not included in it. The following screenshot has been taken from the End of Service Benefits calculator given above.
Trading Software Development Company in MENA: How to Choose a Partner…
Yes, the employer has the right to terminate the contract without compensating the worker with an end-of-service gratuity, according to the cases specified in Article 81 of the Saudi Labor Law. The value of the end-of-service gratuity is calculated based on the last salary the worker received, including allowances. The end-of-service benefits calculator provided by the Ministry of Human Resources and Social Development works automatically according to the worker’s entered data so that the benefits value is calculated immediately. Therefore, the End of Service Calculator takes the reason for contract termination into account as it affects the final calculation result. Calculate end of service benefits per Saudi labor law, based on contract type, duration, and salary
Your comment will be sent and recorded for the purpose of improving the services on balady platform. An electronic service available on the Balady Platform, providing a governmental digital map that consolidates all geospatial data on a single platform. The value of the end-of-service reward varies depending on the worker’s length of service and the value of the last salary he received. Scale HR operations, manage talent, control spend – all in one platform with Jisr.
major amendments in Saudi Labor Law
An employee got terminated after working for 7 years in a company. As per Article 84 of Saudi Labor Law, an employee is entitled to the following end-of-service benefits in case of termination; Here, we have given an end-of-service benefits (ESB) calculator and explained the calculation in detail as per Saudi Labor Law. Yes, terminating the contract is better than resigning in terms of the value of the end-of-service bonus that is obtained when the contract is completely terminated.
An End of Service Calculator for Saudi Arabia is a vital tool for employees and employers, calculating the end-of-service benefits (EOSB) or gratuity as mandated by the Saudi Labor Law (Article 84). Why does the calculator ask for the reason for contract termination when calculating the gratuity? By inputting your basic salary, years of service, contract type, and reason for termination, you can instantly estimate your end of service benefits. Note that employees with less than 2 years (resignation) or 1 year (termination) may not qualify, and misconduct terminations may forfeit EOSB. If an employee resigns at the contract completion, he is entitled to his full end-of-service benefits award, i.e. The gratuity calculation varies depending upon the fact that the employee is terminated or resigned.
For accuracy, verify basic salary (excluding allowances), contract details, and service dates. For accurate calculations, consult your employer or the Saudi Ministry of Human Resources and Social Development. Results may vary due to specific contract terms or employer policies. Gratuity is calculated using basic salary, excluding allowances, and is capped at two years’ salary. Enter your employment details to calculate your Saudi Arabia end-of-service gratuity. Unfortunately, the end-of-service calculator of Saudi Arabia given above would not calculate the ESB for domestic workers.
- Therefore, the End of Service Calculator takes the reason for contract termination into account as it affects the final calculation result.
- An employee resigned before his next contract renewal after completing his two-year contract with the company.
- Yes, terminating the contract is better than resigning in terms of the value of the end-of-service bonus that is obtained when the contract is completely terminated.
Yes, the End of Service Calculator is an automated tool that relies solely on the standards set by the law for calculating the end-of-service gratuity. In 2025, as Saudi Arabia advances toward Vision 2030, using a reliable calculator ensures transparency, financial planning, and adherence to regulations. This comprehensive guide explains how to use an End of Service Calculator in Saudi Arabia, the legal framework, eligibility criteria, and tips to ensure precise calculations in 2025. Navigating the complexities of end of service benefits in Saudi Arabia can be challenging. Calculators from the Ministry of Human Resources and Social Development (HRSD) or platforms like Qiwa are reliable but estimates only.
The calculator simplifies the process by factoring in variables like years of service, salary, and contract type to deliver instant, accurate results. Governed by the Saudi Labor Law, these benefits are a financial entitlement for employees who meet specific conditions. As per Article 2 of Saudi Labor Law, all the fixed benefits paid to an employee are included in the end-of-service benefits calculation, such as;
As per Article 85 of Saudi Labor Law, an employee who resigns after completing 5 years but before 10 years of service is entitled to; An employee resigned after working for 4 years in a company. According to Article 85 of Saudi Labor Law, if an employee resigns after 2 years but before completing 5 years of service; Keep in mind that there is no ESB entitlement if an employee is terminated under Article 80 of Saudi Labor Law. Every employee working in KSA is entitled to get the end-of-service benefits https://chickenroadapp.in/ with the following three exceptions;
The end-of-service bonus shall be forfeited if the worker resigns before two years have passed since the contract. The value of the end-of-service reward can also be calculated through the Qiwa platform by entering the link sso.qiwa.sa. You can calculate the end-of-service reward in the Saudi labor system through the website of the Ministry of Human Resources and Social Development, the end-of-service reward calculation service, through the link hrsd.gov.sa. The Ministry of Human Resources and Social Development in the Kingdom has made it possible for workers to calculate the end-of-service gratuity and its due date. Are the calculations made by the calculator reliable? An End of Service Calculator for Saudi Arabia ensures transparent, compliant gratuity calculations.