Qiwa End Of Service Calculator Saudi Arabia

End of Service Gratuity Formula:

\[ Gratuity = \frac{Basic\ Salary}{30} \times Service\ Days \times Factor \]

Gratuity (SAR):

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1. What is Saudi End-of-Service Benefits?

The Saudi End-of-Service Benefits, also known as gratuity, is a legal entitlement for employees in Saudi Arabia upon termination of their employment contract. 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:

\[ Gratuity = \frac{Basic\ Salary}{30} \times Service\ Days \times Factor \]

Where:

\( Basic\ Salary \) — Employee's basic monthly salary in Saudi Riyals (SAR)
\( Service\ Days \) — Total number of days worked
\( Factor \) — Multiplier between 0.5 and 1 based on employment circumstances

Explanation: The formula calculates the daily rate from the basic salary, multiplies by service days, and applies the appropriate factor based on the reason for termination and length of service.

3. Importance of Gratuity Calculation

Details: Accurate gratuity calculation is essential for both employers and employees to ensure compliance with Saudi labor laws and fair compensation upon employment termination.

4. Using the Calculator

Tips: Enter basic salary in SAR, total service days, and select the appropriate factor (0.5 for service less than 5 years, 1 for service 5 years or more, or as per specific employment circumstances).

5. Frequently Asked Questions (FAQ)

Q1: What is the factor based on?
A: The factor depends on the reason for termination and length of service - typically 0.5 for service under 5 years and 1 for service of 5 years or more.

Q2: Is basic salary the same as total salary?
A: No, basic salary excludes allowances and bonuses. Only the basic salary component is used for gratuity calculation under Saudi law.

Q3: How are service days calculated?
A: Service days include all actual working days from employment start date to termination date, excluding unpaid leave periods.

Q4: Are there different rules for different employment types?
A: Yes, calculation methods may vary for limited and unlimited contracts, and for resignations versus terminations.

Q5: When is gratuity payable?
A: Gratuity must be paid within 7 days of employment termination according to Saudi labor regulations.