In the world of work, Saudi labor law end of service calculator is one of the fundamental rights guaranteed by Saudi labor law to employees. Understanding how to calculate these rights is crucial for both employees and employers. In this article, we will explore the method for calculating end-of-service benefits according to Saudi labor law and clarify the associated mechanisms, helping to promote transparency and fairness in labor relations. Read on to learn all the details related to end-of-service calculations and how to use tools like the Qiwa platform to assist employees.
المحتويات
Saudi Labor Law End of Service Calculator
In this article, we highlight the method for Saudi labor law end of service calculator, given its importance to both employees and employers.
End of service calculator Saudi labor law is one of the basic rights guaranteed by the law to an employee upon termination of an employment relationship, whether the contract is for a fixed or indefinite term. It represents an appreciation of the number of years the employee has served the establishment.
In the following lines, we will review the mechanism for calculating the gratuity using an electronic calculator, as well as clarify the cases in which the benefits may not be payable, along with several other relevant essential points. Read on to learn everything you need to know about Saudi labor law end of service benefits calculator.
End of service benefits calculation
End of service benefits calculation as per saudi labor law follows this method:
- Half a month’s salary for each of the first five years of service.
- A full month’s salary for each year after the fifth year.
If the employee hasn’t completed a full year, the benefit is calculated based on the time worked during that year.
Read also: How to Calculate Saudi Labor Law End of Service Benefits?
When the Employee Is Eligible (or Not)
The amount of the benefit depends on why the contract ended and how long the employee worked:
- Resignation before completing two years: No benefit is given.
- Resignation after 2–5 years of service: The employee gets one-third of the benefit.
- Resignation after more than 5 years but less than 10: The employee gets two-thirds of the benefit.
- Resignation after 10 years or more: The full benefit is paid.
- Female employees who leave within 6 months of marriage or 3 months after giving birth: They receive the full benefit.
- If the employee leaves work due to a force majeure (something beyond their control): The full benefit is paid, according to Article 87.
According to Article 82 of the labor law, it is not allowed for the employer and employee to agree to exclude things like commissions or percentages from the salary used to calculate the end of service benefit. These are considered part of the wage and must be included, even if they change from time to time.
End-of Service Calculator Qiwa
According to the Saudi Labor Law, employees are entitled to a financial reward when their employment contract ends whether it’s a fixed-term or open-ended contract.
To calculate your end-of-service benefit using the Qiwa platform, follow these steps:
- Log in to your personal account on Qiwa Individuals.
- From the main menu, go to “Current Job” and select “End-of-Service Reward.”
- Fill in the required details, including the type of contract, reason for ending employment, start and end dates, and total monthly salary.
- Once all information is entered, the calculator will automatically display the amount you’re entitled to receive.
For more details or to use the calculator, you can visit the following: End-of service calculator Qiwa
When is an Employee not Entitled to an End of Service Benefits?
The relationship between an employee and an employer is based on a legal contract that clearly outlines the rights and obligations of both parties, including salary, vacation time, compensation, and end of service benefits. However, the Saudi Labor Law specifies a number of cases in which an employee is denied this gratuity if they are proven to have committed serious violations.
The following are the most prominent cases in which an employee’s right to an end of service benefits is forfeited:
Check out: Saudi Labor Law Vacation Pay: A Comprehensive Guide
- If the employee physically or verbally assaults the employer or a senior official.
- If the employee is convicted of conduct that violates honor or integrity.
- If they use forged documents to obtain a job.
- If they disclose business secrets or sensitive information related to the business.
- If they intentionally cause material harm to the company or its clients.
- If they exploit their position for illicit personal gain.
- If they are proven to have committed forgery during their employment.
- If they are absent from work for more than 20 consecutive days without an acceptable excuse.
- When he consistently ignores the duties and responsibilities stipulated in the employment contract.
In conclusion, Saudi labor law end of service calculator is a vital element for protecting employee rights and enhancing healthy work relationships. By understanding the mechanisms and associated conditions, both employees and employers can make informed decisions that benefit both parties. Always strive to stay updated on legal changes and regulations by consulting specialists at the Etqan Law Firm to achieve the best outcomes at the end of every employment relationship.
The Etqan Al Mutamayza Law Firm can provide the necessary support. You can contact their team
through the following mobile numbers: 056113776, 0541110440, 504315333
Alternatively, you can visit our branches:
Learn about: Understanding Vacation Pay Calculation In Saudi Arabia
- Jeddah: Al-Aziziyah District–Mohammed bin Abdulaziz Street (Tahlia)
- Riyadh: King Abdulaziz Street – In front of Kingdom
- Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.
FAQ
1- How is KSA end of service calculated?
The calculation of EOSB in Saudi Arabia depends on the duration of employment and the reason for the termination (whether it’s voluntary or involuntary).
For the first 5 years of employment:
Half month’s salary for each year worked.
For any additional years after the first 5 years:
One month’s salary for each year worked.
2- How do I calculate my end of service?
To calculate your EOSB, follow these steps:
Step 1: Check your monthly salary (basic salary, excluding bonuses, allowances, etc.).
Step 2: Determine the total number of years you have worked with the employer.
Step 3: Apply the formula based on the duration of your employment:
For the first 5 years: Half a month’s salary for each year worked.
For each additional year beyond 5 years: One month’s salary for each year worked.
3. How to calculate End of Service Award?
The Saudi Ministry of Human Resources and Social Development has provided an electronic End of Service Award Calculator, which enables both employees and employers to easily calculate the award in accordance with the Saudi Labor Law. The calculation is based on the type of contract, duration of service, reason for termination, and the last monthly salary.
After entering the required information in the designated fields, the calculator displays an approximate value of the End of Service Award based on the approved regulations.
4. What is the labor law for final exit in Saudi Arabia?
When an employee completes their employment contract or is terminated (for reasons such as resignation, mutual agreement, or end of a fixed-term contract), they must go through a final exit process. Here’s an overview of the final exit under Saudi Labor Law:
Eligibility for Final Exit:
The employee must have completed all required contractual obligations (e.g., notice period, if applicable).
The employer must complete any dues, including End of Service Benefits (EOSB) and any outstanding payments.
Notice Period:
If an employee resigns or the contract is terminated by the employer, a notice period of 30 days (for indefinite contracts) or as per the contract is required. If the employee does not serve the notice period, they might be liable to pay compensation, depending on the contract terms.
Final Exit Visa:
After the dues and formalities are settled, the employer must process the final exit visa.
The visa must be approved by the Saudi Ministry of Human Resources and Social Development.
Employees on final exit are not allowed to return to Saudi Arabia on a new work visa unless the exit process is fully completed and the exit visa is used within 60 days.
End of Service Benefits:
EOSB must be paid in full before the final exit visa is issued.
Employment Termination with Just Cause:
If an employee is terminated for misconduct or a valid reason under Saudi Labor Law, they might not be entitled to EOSB or other severance benefits.