How to calculate End of service benefits in UAE

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Payroll Middle East
HOW TO CALCULATE END SERVICE BENEFITS IN KSA
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The Saudi Labor Law states laws and regulations
for employment. The law has articles and clauses
which define rights of the employer and employee
both. It is very necessary for both the employer
and employee to understand the labor law before
starting working in Kingdom of Saudi Arabia. A
large number of people working in Saudi Arabia
are expatriates who usually find it convenient
to keep notable human resource consulting
companies in loop for various HR solutions.
Saudi Labor Law
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What is Gratuity?
Gratuity is a monetary token of acknowledgment
paid to an employee by the company for their
commitment, diligence, and efforts they have
contributed during the tenure of service. This
amount is usually paid after the employment ends
whether the employee resigns or gets
terminated by the company. According to Saudi
labor law, if an employee wishes to resign, he is
entitled
to receive gratuity from the company after the
completion of two years in the same company.
However, if the employee is terminated, he is
entitled to receive a full accumulation of
gratuity in case of serving more than a year in
the same company. Gratuity is considered as a
liability to the employer.
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In case of Resignation
Factors Affecting Gratuity Calculations in
Saudi Arabia?
Apply page animations and transitions to your
Canva If the service tenure is less than two
years then no gratuity shall be paid. If the
service tenure is between two and five years,
then one-third of the gratuity shall be paid If
the service tenure is between five and ten years,
two- thirds of the gratuity shall be paid. If
the service period is more than 10 years then
complete gratuity shall be paid. In case of
Termination If the service tenure is under one
year then no gratuity shall be paid. If the
service tenure is between one and five years,
half salary per month per year shall be paid. If
the service tenure is more than five years, full
gratuity shall be paid.
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Gratuity
Service Tenure Monthly Salary (SAR) Payroll
Month No. of years worked Wage per day Gratuity
days First 5 years (1/2 monthly salary per
year) 5 years (1 monthly salary per
year) Total Gratuity
Less than 5 years 10,000 Nov-19
4.5 333.33 62.05 20,671.23 NIL 20,671.23
5 years and above 10,000 Nov-19
7.5 333.33 151.5 25,000 25500 50,500
How to calculate the gratuity in Saudi Arabia?
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Contact Information
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55 4828368 Call us 971 4 2500251
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