How to calculate gratuity in Saudi Arabia for expatriate workers

Dubai: If you are an expatriate working in Saudi Arabia’s private sector and are planning to resign or have been terminated, it is crucial to understand the gratuity you are entitled to from your employer.

According to the Ministry of Human Resources and Social Development (HRSD), which sets labour policies for both public and private sectors, end of service gratuity is a worker’s right. The law mandates that employers pay this gratuity at the end of the employment contract, whether it’s for a fixed term or indefinite period.

To simplify the process of calculating your gratuity, HRSD offers an online end-of-service calculator. This tool helps expatriates determine their benefits according to Saudi labour laws.

How to calculate end of service benefits (ESOB) online

Visit the HRSD end-of-service benefit calculator: - https://www.hrsd.gov.sa/en/ministry-services/services/end-service-benefit-calculator

1. Enter your wage.
2. Select your contract type: definite or indefinite.
3. Choose the reason for termination: resignation, expiry of contract, etc.
4. Input your years of service.
5. Enter the number of service days and months.

Click ‘Calculate Gratuity,’ and the calculator will display your end-of-service amount. You also have the option to download the result as a PDF file to confirm your entitlement.

This tool makes it easier for expatriates to understand their dues and ensures that you receive the benefits you are entitled to as per Saudi Arabia's labour regulations.