Saudi Gratuity Calculation Update

Payroll administrators will receive corrected gratuity results for eligible employees on fixed-term contracts. When an employee terminates on the contract end date with fewer than two years of service, the gratuity calculation pays 0.5 month’s salary multiplied by the period of service at 100%, whether the termination is instigated by the employee or employer.

Existing calculation treatment remains unchanged for the other documented fixed-term contract scenarios and for service periods above five years.

Supports Saudi legislative compliance by applying the correct gratuity calculation for affected fixed-term contract terminations.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

• Calculations for service periods above five years are unchanged.
• Other, unsupported, scenarios can use an override value on the gratuity calculation card. The override is paid instead of the calculated amount, including when the calculated amount is zero.