Gratuity Formula:
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The Qiwa End Of Service Calculator KSA is a tool designed to calculate end-of-service benefits (gratuity) for employees in Saudi Arabia according to the Kingdom's labor laws and Qiwa platform standards.
The calculator uses the gratuity formula:
Where:
Explanation: The formula calculates daily wage by dividing basic salary by 30, then multiplies by service days and applicable gratuity factor based on employment duration and circumstances.
Details: Accurate gratuity calculation is essential for ensuring employees receive their rightful end-of-service benefits as per Saudi labor law, maintaining compliance, and preventing legal disputes.
Tips: Enter basic salary in SAR, total service days, and select appropriate factor (0.5-1). All values must be valid (salary > 0, service days > 0, factor between 0.5-1).
Q1: What determines the gratuity factor value?
A: The factor depends on employment duration and circumstances - 0.5 for service less than 5 years, 1 for 5+ years, with variations based on termination reasons.
Q2: Is basic salary the only component considered?
A: Yes, for gratuity calculation, only basic salary is considered excluding allowances, bonuses, and other benefits.
Q3: How are service days calculated?
A: Service days include all actual working days from employment start date to end date, excluding unpaid leaves.
Q4: What if employment is terminated during probation?
A: No gratuity is payable if employment is terminated during probation period unless otherwise specified in contract.
Q5: Are there different rules for different employment types?
A: Yes, gratuity calculations may vary for limited and unlimited contracts, and for resignation versus termination cases.