Saudi end of service

Saudi end of service calculator

Estimate your end-of-service award from your last monthly wage and your years of service. The formula is Article 84 of the Saudi Labor Law, with the resignation fractions from Article 85.

The award uses the last wage, which includes basic salary and fixed allowances. Commissions can be excluded by agreement under Article 86.

Article 87 covers force majeure and a female worker who ends her contract within six months of marriage or three months of giving birth.

Estimated award

SAR 27,000

7 years of service on a wage of SAR 6,000.

How the calculation works

Article 84 gives half a month of wage for each of the first five years, then one full month of wage for each year after that. The award is calculated on the last wage, and part years are paid in proportion to the time worked.

Article 85 changes the amount when you resign. With two to five years of service you get one third of the award, with more than five and less than ten years you get two thirds, and from ten years you get the full award. Under two years of service a resignation gives no award. The law sets no cap on the award. One case sits outside this calculator: an Article 80 dismissal, where the employer may end the contract without an award for the serious cases listed in that article.

Worked example

SAR 6,000 wage, 7 years of service, employer ended the contract.

First five years: 6,000 × 0.5 × 5 = SAR 15,000.

Next two years: 6,000 × 1 × 2 = SAR 12,000.

Total: SAR 27,000.

The same worker who resigned would get two thirds: SAR 18,000.

Questions

Is the award based on basic salary or total salary?

Article 84 says the award is calculated on the last wage. Under the law's definitions the wage includes the basic salary and the fixed allowances the worker receives. Article 86 allows the contract to exclude commissions and sales percentages. Enter the figure your contract treats as wage.

Does resigning reduce the award?

Yes, in Saudi Arabia. Article 85 gives one third after two to five years, two thirds after five and under ten years, and the full award from ten years. Under two years of service a resignation gives no award.

What if my employer ended the contract?

The Article 84 award applies, with no minimum year and no reduction. Part years are counted in proportion, so six months of service still produces a quarter of a month's wage. The exception is Article 80, where the employer may end the contract without an award for the cases listed there, such as assault, a serious breach of duty, forgery, long absence, or the probation period.

Is there a cap on the award?

No. The Saudi Labor Law sets no maximum. Unlike the UAE, there is no two-year wage ceiling.

What counts as continuous service?

Continuous service includes official holidays, exam leave, and unpaid absences of up to 20 days per work year. Longer unpaid breaks can interrupt the count.

When must the employer pay?

Article 88 requires the employer to pay wages and settle entitlements within one week of the end of the contract, and within two weeks if the worker ended it. The employer may deduct work-related debts.

Does this apply to domestic workers or special zones?

No. Domestic workers are covered by separate regulations, and some categories are excluded from the Labor Law under Article 7. Special economic zones can have their own rules. This calculator covers the standard private-sector contract.

Is this legal advice?

No. It is an estimate for planning. For a dispute or a final settlement, use the Ministry of Human Resources and Social Development, the Qiwa platform, or a lawyer.

Sources

Dot & Halo

Free tools, checked against the source law. No account and no sign-up.

Last checked 27 October 2026. This is an estimate, not legal advice. Special contracts and excluded categories can differ.