Saudi end-of-service calculator

Rules checked 6 Oct 2026

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How the end-of-service award is calculated

The Saudi Labor Law sets the end-of-service award in Article 84. It is based on your last wage and your length of service.

Service	Award per year
First 5 years	Half a month’s wage
Each year after 5	One month’s wage

Part years count in proportion. Your “wage” here means your actual wage: basic salary plus housing and other regular allowances that are paid every month, not just basic. That is a key difference from the UAE, where gratuity uses basic salary only.

If you resign: Article 85

When the employee resigns, Article 85 reduces the award according to length of service:

Service when you resign	Share of the award
Less than 2 years	Nothing
2 to less than 5 years	One third
5 to less than 10 years	Two thirds
10 years or more	Full award

When you get the full award anyway: Article 87

Article 87 gives the full award even when the employee leaves, in these cases:

The contract ends because of force majeure beyond the employee’s control.
A female employee ends her contract within six months of marriage.
A female employee ends her contract within three months of giving birth.

Choose the Article 87 option in the calculator if one of these applies.

Worked examples

Eight years, wage SAR 12,000, contract ended by the employer.

First 5 years: 5 × 0.5 × 12,000 = SAR 30,000
Next 3 years: 3 × 12,000 = SAR 36,000
Award: SAR 66,000

Same service, but the employee resigned. Eight years falls in the 5 to 10 band, so the employee receives two thirds: SAR 44,000.

Eighteen months, employee resigned. Under two years, so nothing is due under Article 85.

When it must be paid

Article 88 sets the timing. If the employer ends the contract, the award and other dues must be paid within one week. If the employee ends it, within two weeks.

The 2025 amendments

Amendments to the Labor Law took effect on 19 February 2025. They did not change the Article 84 formula, but they did clarify how resignation works: the employer has 30 days to respond to a written resignation (it can defer acceptance by up to 60 days if business needs require), and the employee can withdraw within seven days if it has not been accepted. Notice periods for open-ended contracts are now 30 days when the employee leaves and 60 days when the employer ends the contract. See what changed in 2025.

Frequently asked questions

Does dismissal for misconduct affect the award?

Yes. Dismissal under Article 80, which covers serious misconduct, can mean no award is due. The calculator does not cover that case.

Is housing included in the wage?

Housing paid as a regular monthly cash allowance is normally included. If your employer provides housing in kind, ask how they value it.

Do Saudi nationals and expats get the same award?

The Article 84 formula applies to workers covered by the Labor Law in general. Saudi nationals also have social insurance (GOSI) benefits that work separately.

What if I worked 1 year and 11 months and resigned?

Under two years, Article 85 gives nothing on resignation. If you can, check your exact service before resigning.

Is the award paid in one lump sum?

Yes. It is paid as a lump sum with your final dues.