Saudi Arabia pack
Saudi End-of-Service Award Calculator
Work out the end-of-service award in Saudi Arabia: half a month's wage for each of the first five years and a full month for each year after (Labor Law, Article 84), with the reductions on resignation in Article 85.
For private-sector workers under the Saudi Labor Law. No award is due on dismissal for misconduct under Article 80; a worker who leaves because the employer broke the contract (Article 81) keeps the full award. Domestic workers and government employees have their own rules.
- End-of-service award
- –
- Full award before any reduction
- –
- Share you receive
- –
How it is calculated
- Full award = ½ month's wage × years up to 5 + 1 month's wage × years after 5 (part years in proportion)
- On resignation (Article 85): under 2 years: nothing; 2 to 5 years: one third; more than 5 and under 10 years: two thirds; 10 years or more: the full award
- Full award on leaving for force majeure, or for a female worker leaving within 6 months of marriage or 3 months of giving birth (Article 87)
- Service = years + months ÷ 12 + days ÷ 365.
Worked example
Last wage SAR 10,000 a month, 7 years of service, the worker resigns.
| You enter | |
|---|---|
| Last monthly wage | SAR 10,000 |
| Years of service | 7 |
| Plus months | 0 |
| Plus days | 0 |
| How the job ends | I resign |
| You get | |
| End-of-service award | SAR 30,000 |
| Full award before any reduction | SAR 45,000 |
| Share you receive | 66.67% |
For 7 years the full award is SAR 45,000. On resignation you receive 66.67% of it (Article 85): SAR 30,000.
Questions
What wage is the award based on?
The last wage. Commissions, sales percentages and similar variable pay can be excluded if your contract says so (Article 86).
What if I resign after exactly five years?
Article 85 gives one third for service of not less than two and not more than five years, so exactly five years gives one third. Two thirds starts once service is more than five years.
Sources and checks
- Saudi Labor Law (Royal Decree No. M/51), Articles 84–87, English translation published by the Ministry of Human Resources and Social Development
- Ministry of Human Resources and Social Development: end-of-service award rules
Last checked: 15 October 2026. This calculator passes 9 automatic tests before every release.
Your numbers never leave your device: the calculation runs in your browser and nothing you type is sent or stored.
The February 2025 amendments changed how resignations are accepted (the acceptance date fixes your length of service) but not the award articles. Your contract or company rules may give more. For a dispute, use the Ministry's Qiwa and labour dispute services. This is an estimate, not legal advice. Results are estimates for information only and are not financial, tax or legal advice. Check important figures with a qualified professional before you act on them.