end of service calculator

What Is an End of Service Benefit?

End of service benefit (sometimes called gratuity, EOSB, or severance) is a payment due to an employee when employment ends, subject to labor law rules in the relevant country. In many jurisdictions, it is tied to your last basic salary and the number of years you served.

The purpose of this payment is to recognize long-term service and provide financial support during job transition. Depending on local regulations, your final amount can change based on:

• Length of continuous service
• Basic wage used in the calculation
• Reason for leaving (resignation vs. termination)
• Periods excluded from service count, such as unpaid leave

How This End of Service Calculator Works

1) Select the legal framework

Choose UAE or Saudi Arabia. Each has a different formula and eligibility structure.

2) Enter salary and service details

Add your monthly basic salary, completed years, and additional months. If you had unpaid leave that should not count as service time, include those days too.

3) Choose resignation or termination

For Saudi Arabia, resignation may reduce the final benefit depending on service length. For UAE under current rules, entitlement is generally based on service and basic wage, with no old-style resignation fractions.

4) Review detailed breakdown

The result shows your estimated effective service duration, formula components, and final figure so you can understand how the number was produced.

Formulas Used in This Calculator

UAE (Private Sector)

• Less than 1 year service: no gratuity entitlement
• First 5 years: 21 days of basic wage for each year
• After 5 years: 30 days of basic wage for each additional year
• Maximum cap: gratuity cannot exceed two years of wage

Saudi Arabia

• First 5 years: half-month wage for each year
• After 5 years: one month wage for each additional year
• If resignation applies, Article 85 fractions are commonly used:
  • Less than 2 years: 0%
  • 2 to less than 5 years: 1/3
  • 5 to less than 10 years: 2/3
  • 10 years or more: 100%

Example

Suppose your monthly basic salary is 10,000 and your service is 7 years and 6 months.

• UAE: 5 years at 21 days + 2.5 years at 30 days = 180 days total. Gratuity = (10,000 / 30) × 180 = 60,000.
• Saudi: 5 × 0.5 month + 2.5 × 1 month = 5 months equivalent. EOSB = 10,000 × 5 = 50,000 (before any resignation reduction).

Common Mistakes to Avoid

• Using gross salary instead of basic salary when law requires basic pay
• Ignoring unpaid leave adjustments
• Forgetting that some laws cap total gratuity
• Applying old legal rules after reforms have changed entitlement

Documents You Should Keep Ready

• Employment contract and amendments
• Offer letter and salary structure (basic vs allowances)
• Payroll slips and HR service certificate
• Leave records and unpaid leave documentation

Important Disclaimer

This calculator gives an estimate only. Your actual final settlement may include or exclude items such as leave encashment, notice compensation, deductions, loan balances, or court-ordered adjustments. Always confirm with your HR department or a qualified labor-law professional in your jurisdiction.

Final Thoughts

A good end of service estimate helps you negotiate confidently, plan cash flow, and avoid surprises when changing jobs. Use this calculator as a practical first step, then verify against your contract and current legal guidance.