HOW TO CALCULATE END SERVICE BENEFITS IN
KSA
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Saudi
Law
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.
Labor
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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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Factors Affecting Gratuity Calculation
s in Saudi Arabia?
In case of Resignation
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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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Gratuit y 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 Nov19 4.5 333.33 62.05 20,671. 23 NIL 20,671.2 3 5 years and above 10,000 Nov19 7.5 333.33 151.5 25,000 25500 50,500 How to calculate the gratuity in Saudi Arabia? https://payrollmiddleeast.com/
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