End of Service Gratuity: Who Qualifies and What You Get
Learn how the end of service gratuity works in Saudi Arabia and how your years of employment determine your final lump sum payment.
The End of Service Gratuity is a lump sum payment provided to workers when their employment contract comes to an end.
Who it's for
This applies to all employees at the time their employment contract is terminated.
What you get
You receive a single lump sum payment. The total amount you receive is calculated based on the total number of years you have worked for the company.
What it costs you
There is no direct cost to the employee. For the employer, this represents a financial liability that must be tracked and recorded on the company's balance sheet.
The catch to know
The amount you receive can change depending on how your employment ended. The calculation differs significantly depending on whether you resigned voluntarily or if your employment was terminated by the employer.
How to apply
- Review your employment contract to understand your service history.
- Confirm your total years of service with your employer.
- Check the calculation based on your reason for leaving.
- Contact your employer or the relevant authorities to process the final settlement.