Gratuity Calculator for Saudi Arabia (KSA) & UAE

Calculate your end of service benefits (EOSB) or gratuity for Saudi Arabia 🇸🇦 and UAE 🇦🇪 based on official labor laws. Instant, accurate, and 100% private.

SAR

This tool is for estimation purposes only and does not constitute legal advice. Calculations adhere to KSA Labor Law & UAE Decree-Law 33/2021.

What is Gratuity (EOSB) in Saudi Arabia?

Gratuity (also called End of Service Benefits - EOSB or مكافأة نهاية الخدمة in Arabic) is a lump-sum payment made by employers to employees when their employment ends in Saudi Arabia or the UAE.

In Saudi Arabia, gratuity is governed by Article 84 and Article 85 of the Saudi Labor Law. The amount depends on:

  • Length of service - How many years you worked
  • Reason for leaving - Termination by employer vs. resignation
  • Basic salary - Last drawn monthly salary (excluding allowances)

💡 Pro Tip: Gratuity is calculated on your basic salary only, not total package. Housing, transport, and other allowances are excluded from EOSB calculations in KSA.

How is Gratuity Calculated in Saudi Arabia (KSA)?

🇸🇦 KSA Gratuity Formula (Article 84 & 85)

Based on Article 84 of the Saudi Labor Law, employees terminated by the employer are entitled to:

First 5 Years

Half a month's salary for each year of service

After 5 Years

One full month's salary for each additional year

Example Calculation (Termination by Employer):

Employee worked 7 years with basic salary of 10,000 SAR/month

• First 5 years: 5 × (10,000 ÷ 2) = 25,000 SAR

• Next 2 years: 2 × 10,000 = 20,000 SAR

Total Gratuity = 45,000 SAR

Resignation Rules (Article 85)

If you resign voluntarily (quit your job), your gratuity entitlement is reduced:

Less than 2 years 0% (Nothing)
2 to 5 years 33% (One-third)
5 to 10 years 67% (Two-thirds)
10+ years 100% (Full amount)

🇦🇪 UAE Gratuity Calculation (Federal Decree-Law 33/2021)

UAE gratuity is calculated differently based on Federal Decree-Law No. 33 of 2021:

First 5 Years

21 days' salary for each year

After 5 Years

30 days' salary for each additional year

⚠️ Maximum cap: Total gratuity cannot exceed 2 years' basic salary in the UAE.

Frequently Asked Questions (FAQ)

What is EOSB meaning in salary?
EOSB stands for End of Service Benefits, commonly known as gratuity or termination indemnity. It's a mandatory payment employers must make to employees when their employment ends, calculated as a percentage of their basic monthly salary multiplied by years of service.

Is gratuity calculated on basic salary or gross salary in KSA?
In Saudi Arabia, gratuity is calculated on basic salary only, not gross salary. Housing allowance, transport allowance, and other benefits are excluded from EOSB calculations according to Article 84 of the KSA Labor Law.

Do I get gratuity if I resign in Saudi Arabia?
Yes, but it's reduced. If you resign in KSA: 0-2 years = nothing, 2-5 years = 1/3 of gratuity, 5-10 years = 2/3 of gratuity, 10+ years = full gratuity. This is specified in Article 85 of the Saudi Labor Law.

How is gratuity calculated if I worked 3 years in Saudi Arabia?
For 3 years: Termination = 3 × (basic salary ÷ 2) = 1.5 months' salary. Resignation = 1.5 months × 33% = 0.5 months' salary. Example: If your basic salary is 10,000 SAR, termination gratuity = 15,000 SAR, resignation gratuity = 5,000 SAR.

Is gratuity taxable in Saudi Arabia?
No, gratuity (EOSB) is not taxable in Saudi Arabia. There is no personal income tax in KSA, so the full gratuity amount you receive is yours to keep without any deductions.

When should I receive my gratuity payment in KSA?
According to Saudi Labor Law, employers must pay gratuity within 7 days of the employee's last working day. If delayed, employees can file a complaint with the Ministry of Human Resources and Social Development (HRSD).

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