CalcMoney
AREN

End of Service Calculator

Calculate your end of service benefit per Saudi labor law

SAR

Benefit Due

Total Benefit

SAR
First 5 years (5 yrs)
After 5 years (3 yrs)

End-of-Service Calculator: Calculate Your Entitlements Accurately

End-of-service gratuity is an earned right for every employee upon termination of employment, whether through resignation, termination, or retirement. The calculation method differs between Egypt, Saudi Arabia, and other Gulf countries.

End-of-Service System in Egypt

Under Egyptian Labor Law No. 12 of 2003, upon end of service an employee is entitled to: - **One month's wage** for each of the first five years of service - **One and a half months' wage** for each subsequent year of service

The calculation is based on the last basic salary received, not the total gross salary in most cases.

In case of resignation, full gratuity is due if the employee has completed 10 or more years of service. From 5 to 10 years: half the gratuity. Less than 5 years: no gratuity in case of voluntary resignation.

End-of-Service System in Saudi Arabia

Under Saudi Labor Law: - **Less than 2 years:** No gratuity - **2 to less than 5 years:** One-third monthly wage per year - **5 to less than 10 years:** Two-thirds monthly wage per year - **10 years or more:** Full monthly wage per year

In case of termination by the employer, full gratuity is due from the first year of service.

Factors That Affect Your Gratuity

  • Was termination by resignation, dismissal, or retirement?
  • Total completed years of service
  • Partial years? (calculated in months)
  • Basic salary versus total gross salary

Practical Tips

Always keep copies of your employment contract and pay slips to document your basic salary and start date. In case of a dispute, it is advisable to contact the labor office or consult an employment lawyer before signing any settlement.

Use our calculator to compute your entitlement based on your country, years of service, and basic salary.

FAQ

Is end-of-service gratuity calculated on basic or total salary?โ–ผ
In both Egypt and Saudi Arabia, gratuity is generally calculated on basic salary, not total gross salary including allowances. Some contracts explicitly specify total salary, in which case the contract terms apply.
What if I resign from a job in Egypt after 7 years?โ–ผ
You are entitled to half the gratuity (since you are between 5 and 10 years). Calculation: (7 ร— last basic salary) รท 2. If your salary is EGP 5,000: (7 ร— 5,000) รท 2 = EGP 17,500.
Are partial years counted in end-of-service gratuity?โ–ผ
Yes. Partial months are calculated proportionally. If you worked 7 years and 6 months, the 6 months count as half a year and are added to your gratuity.
Does an unfairly dismissed employee have additional rights?โ–ผ
Yes. In Egypt, arbitrary dismissal entitles the employee to claim additional compensation on top of the gratuity. This compensation is determined by the court based on salary and the circumstances of dismissal.
Is end-of-service gratuity taxable in Egypt?โ–ผ
Under Egyptian tax law, end-of-service gratuity is exempt from income tax when within the limits prescribed by labor law. Amounts exceeding the legal entitlement may be subject to taxation.

Related Tools

๐Ÿ’ฐSalary Calculator๐Ÿ’ณNet Salary Calculator๐Ÿ–๏ธRetirement Calculator๐ŸŽฏSavings Goal

Results are approximate and for educational purposes only, not financial or legal advice. Consult a certified financial advisor before making financial decisions.