End of Service Gratuity: 40,000 SAR for 7 Years (on Resignation) | Saudi Arabia
Detailed statutory calculation of gratuity for 40,000 SAR basic salary after 7 years of service in Saudi Arabia (on Resignation) per Saudi Labor Law (Arts 84, 85, 87) & GOSI.
Total Calculated Gratuity
120,000.00 SAR
Saudi Labor Law (Articles 84 & 85)
Statutory Calculation Breakdown
| Country & Jurisdiction | Saudi Arabia (Saudi Labor Law (Arts 84, 85, 87) & GOSI) |
| Monthly Basic Salary | 40,000.00 SAR |
| Length of Continuous Service | 7 Years |
| Termination Cause | on Resignation |
| First 5 Years (0.5 month/yr) | 100,000.00 SAR |
| Subsequent Years (1.0 month/yr) | 80,000.00 SAR |
| Full Base Entitlement | 180,000.00 SAR |
| Statutory Resignation Ratio (Art 85) | 66.7% |
| Final Payable Severance | 120,000.00 SAR |
Severance Comparison: Termination vs Resignation
| Termination Scenario | Entitled Gratuity | % of Full Base |
|---|---|---|
| Contract End / Employer Termination | 180,000.00 SAR | 100% |
| Employee Resignation | 120,000.00 SAR | 66.7% |
Difference between termination and resignation: 60,000.00 SAR