End-of-service gratuity calculator for Saudi Arabia.
Enter a salary and length of service to see what is payable under Saudi Arabia rules, including how resignation changes the entitlement.
Gratuity here is calculated on the wage including allowances.
Part years count - enter 3.5 for three and a half years.
Resignation reduces the entitlement in this market, by length of service.
| Service band | Years | Days/yr | Amount |
|---|---|---|---|
| Years 0-5 | 5 | 15 | SAR 25,000.00 |
| Accrued gratuity | SAR 25,000.00 | ||
- Payable now
- SAR 25,000.00
How Saudi Arabia calculates it
- Half a month's wage for each of the first five years, then a full month for each year after.
- On resignation the entitlement is reduced by length of service; on termination it is paid in full.
Rules as of August 2026. Confirm current entitlements with the Saudi Labour Law, Articles 84-85 (Royal Decree M/51). This calculator is a guide, not legal advice.
Gratuity questions in Saudi Arabia.
How is end-of-service gratuity calculated in Saudi Arabia?
Half a month's wage for each of the first five years, then a full month for each year after.
Which salary is gratuity based on in Saudi Arabia?
The wage including allowances, not basic salary alone.
Does resigning reduce gratuity in Saudi Arabia?
Yes. The entitlement is scaled by length of service when the employee resigns, and paid in full on termination.
Does Magnar calculate end-of-service automatically?
Yes. Magnar accrues end-of-service continuously per employee under Saudi Arabia rules, so the liability is visible on the balance sheet before anyone leaves, and settles it correctly on the final pay run.
Gratuity across the GCC.
The rules differ by country - each calculator applies its own.
Run Saudi Arabia payroll end to end
Magnar accrues end-of-service continuously, so the liability is never a surprise.
See it inside a real pay run.
Magnar accrues and settles end-of-service automatically, per country, per employee.