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BahrainGratuity for SAR 8,000 basic after 3 years in Saudi Arabia
If you leave, you get half a month's wage for each of your first five years and a full month's wage for each year after that, pro-rated for part years, with no ceiling. If you resign instead of being dismissed you only get part of it: nothing under two years, one third between two and five years, two thirds between five and ten years, and the full amount once you have ten years. Calculated on the full wage (basic + regular allowances), under Articles 84 and 85, Labour Law (Royal Decree M/51).
45.00 days of wage × SAR 266.67 per day, reduced to 33% because you resigned.
How this number is worked out
The same arithmetic the page just ran, step by step.
| Step | Value |
|---|---|
| Wage used | SAR 8,000.00 per month (basic + regular allowances) |
| Daily wage | SAR 266.67 = monthly ÷ 30 |
| Days earned per year | first 5 years: 15 days · thereafter: 30 days |
| Months' wage cap | none in the law |
| Resignation reduction | 0+ yrs: 0% · 2+ yrs: 33% · 5+ yrs: 67% · 10+ yrs: 100% |
What you get after different lengths of service
On a SAR 8,000 wage, as a resignation.
| Years | Days earned | SAR payable |
|---|---|---|
| 1 years | 15.00 | 0.00 |
| 3 years | 45.00 | 3,999.60 |
| 5 years | 75.00 | 13,334.00 |
| 7 years | 135.00 | 24,001.20 |
| 10 years | 225.00 | 60,000.00 |
| 15 years | 375.00 | 100,000.00 |
Each row links to its own page with the full breakdown.
The rule in plain words
If you leave, you get half a month's wage for each of your first five years and a full month's wage for each year after that, pro-rated for part years, with no ceiling. If you resign instead of being dismissed you only get part of it: nothing under two years, one third between two and five years, two thirds between five and ten years, and the full amount once you have ten years. Article 84 sets half a month's wage per year for the first five years and one month per year thereafter, on the last wage, pro-rated for fractions of a year; Article 85 reduces the award on resignation. Article 84 uses the unqualified term 'wage' (الأجر الأخير), not 'basic wage', so regular allowances are included in practice. The consolidated text on the ministry site carries amendments up to Royal Decree M/44 dated 8/2/1446H (2024); the gratuity articles themselves are unchanged by those amendments.
Frequently asked questions
- Is gratuity calculated on basic salary or total salary in Saudi Arabia?
- On the full wage, including the regular allowances you receive — not the basic alone. Use the monthly figure your payslip shows for wage plus regular allowances.
- Does resigning reduce my gratuity?
- In Saudi Arabia, yes — the share you receive depends on how long you served: 0+ years: 0%, 2+ years: 33%, 5+ years: 67%, 10+ years: 100%. A termination pays 100%.
- Does a fixed-term contract change the amount?
- The end-of-service formula applies to both limited and unlimited contracts in Saudi Arabia; what changes with a fixed-term contract is the notice and the early-termination compensation, not the gratuity rate.
- Is gratuity paid on unused leave too?
- Unused annual leave is a separate entitlement and is paid out at the end of service in addition to gratuity. This calculator does not include it.
- What if my service is part of a year?
- Partial years count proportionally. At 3.0 years you have earned 45.00 days of wage.
SourceArticles 84 and 85, Labour Law (Royal Decree M/51)UpdatedArticle numbers and figures are transcribed from the linked official text. Laws change — confirm with the labour ministry before relying on a settlement figure.