End of Service Gratuity: 80,000 SAR for 7 Years (on Resignation) | Saudi Arabia

Detailed statutory calculation of gratuity for 80,000 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
240,000.00 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 80,000.00 SAR
Length of Continuous Service 7 Years
Termination Cause on Resignation
First 5 Years (0.5 month/yr)200,000.00 SAR
Subsequent Years (1.0 month/yr)160,000.00 SAR
Full Base Entitlement360,000.00 SAR
Statutory Resignation Ratio (Art 85)66.7%
Final Payable Severance 240,000.00 SAR

Severance Comparison: Termination vs Resignation

Termination Scenario Entitled Gratuity % of Full Base
Contract End / Employer Termination 360,000.00 SAR 100%
Employee Resignation 240,000.00 SAR 66.7%

Difference between termination and resignation: 120,000.00 SAR