Leaving a job in Saudi Arabia? Under the Labor Law, private-sector workers earn an end-of-service award. Enter your last monthly wage, your length of service and how the contract ended, and this calculator applies Articles 84, 85 and 87 to estimate the award.
Under Article 84 the award is half a month's last wage for each of the first five years and a full month's wage for each year after that, with part-years paid pro rata. If you resign, Article 85 pays nothing under 2 years, one third for 2 to 5 years, two thirds for over 5 and under 10 years, and the full award from 10 years.
Enter your numbers and press Calculate.
For information only. This is an estimate based on Articles 84, 85 and 87 of the Saudi Labor Law. Your contract, unpaid wages, leave balance and any court or HRSD decision can change the final figure.
How to use the End of Service calculator
- Enter your last monthly wage. Under the Law, “wage” includes the basic wage plus the regular allowances you receive, so check what your contract counts.
- Enter your service in years, months and days.
- Choose how the employment ended.
- Press Calculate.
The formula
Article 84 sets the award and says it is based on the last wage, with fractions of a year paid in proportion. Article 85 reduces it when the worker resigns, and Article 87 restores the full award for force majeure and for a female worker who ends her contract within six months of marriage or three months of giving birth.
Worked example
Last wage 10,000 SAR, 8 years of service. Full award = 5,000 × 5 + 10,000 × 3 = 55,000 SAR. If the worker resigned, service is over 5 but under 10 years, so the award is two thirds: 36,666.67 SAR.
Understanding the end-of-service award
The end-of-service award (often called gratuity, or mukafaat nihayat al-khidma) is a lump sum that private-sector employers in Saudi Arabia must pay when an employment relationship ends. It is set by Articles 84 to 88 of the Labor Law, and the Ministry of Human Resources and Social Development (HRSD) summarises the same rules on its website. It is separate from your GOSI pension and from any unpaid salary or leave you are owed, so add those items on top of the figure the calculator gives you.
The Labor Law amendments that came into force on 19 February 2025 introduced a new resignation procedure (Article 79 bis): a resignation is treated as accepted if the employer does not reply within 30 days, and the employer may postpone acceptance by up to 60 days with a written reason. Articles 84 to 88 themselves were not amended, so the award formula used here is unchanged. What the new procedure does affect is the date your service ends, and that date fixes your length of service.
Which wage counts?
Article 84 bases the award on the last wage. HRSD explains that "wage" here means the basic wage plus the regular increases and allowances paid for the work, such as a housing or transport allowance written into the contract. The employer and the worker may agree to exclude commissions and similar variable components. In practice:
- If your contract pays SAR 8,000 basic, SAR 2,000 housing and SAR 800 transport every month, the wage used is normally SAR 10,800.
- Overtime that varies from month to month, one-off bonuses and expense reimbursements are usually not part of it.
- If your contract or your company's work regulations define the wage differently and the definition is more favourable to you, that definition applies.
The split between basic and total wage also matters for overtime: Article 107 pays the hourly wage plus 50% of the basic hourly wage, including for hours worked on Eid and national holidays. Our Saudi public holidays 2027 guide works through an example.
More worked examples in SAR
Contract ended by the employer after 12 years
Last wage SAR 12,000. First five years: 5 × 6,000 = 30,000. Next seven years: 7 × 12,000 = 84,000. The full award is SAR 114,000. Because the worker did not resign, no reduction applies.
Resignation after 3 years and 6 months
Last wage SAR 12,000, so half a month is SAR 6,000. Service is 3.5 years, all inside the first five years: 3.5 × 6,000 = SAR 21,000. Under Article 85 a worker who resigns with at least two but not more than five years receives one third: SAR 7,000.
Fixed-term contract that expires after 1 year and 9 months
The two-year minimum in Article 85 applies only to resignation. When a contract simply reaches its end date, Article 84 applies, so a worker on SAR 12,000 earns 1.75 × 6,000 = SAR 10,500. If the same worker resigned at that point, the award would be zero.
Female worker leaving after marriage
Article 87 gives the full award, without the resignation reduction, to a female worker who ends her contract within six months of her marriage or three months of giving birth. A worker on SAR 9,000 with 4 years of service would receive 4 × 4,500 = SAR 18,000 rather than one third of it.
When the award can be lost or reduced
- Resignation with under two years of continuous service: no award (Article 85).
- Dismissal under Article 80: the Labor Law lists specific cases of serious misconduct (for example assaulting the employer or a manager, or deliberate damage) in which the employer may end the contract without an award, provided the worker had a chance to respond. Disputes about whether Article 80 really applies go to the labour courts.
- Leaving for the employer's fault (Article 81), such as unpaid wages or abusive treatment, is not treated as a resignation, so the worker keeps the full award.
When must it be paid?
Article 88 requires the employer to settle the award and other dues within one week of the end of the contract when the employer ends it, and within two weeks when the worker resigns. If you are not paid, you can file a complaint through HRSD's labour dispute and amicable settlement services before the matter goes to the labour court.
Planning what to do with the money? The compound interest calculator shows how a lump sum could grow, and the zakat calculator helps once a lunar year has passed on savings above the nisab.
A checklist before you accept the final settlement
- Confirm the exact start and end dates of your service in writing, including the date your resignation was accepted.
- Check that the wage used includes the fixed allowances in your contract.
- Ask for a written breakdown that separates the end-of-service award, unpaid salary and any leave balance.
- Keep copies of your contract, payslips and the final settlement before you sign a clearance.
FAQ
Which wage is used?
The last wage. The Labor Law defines the wage as the basic wage plus allowances due for the work; Article 86 allows the parties to agree to exclude commissions and similar variable elements.
Do I get anything if I resign after one year?
No. Under Article 85 a resigning worker with less than two years of continuous service is not entitled to the award.
When must the employer pay?
Article 88 says within one week if the employer ends the relationship and within two weeks if the worker ends it.
Does this apply to government employees or domestic workers?
No. It follows the private-sector Labor Law. Civil servants and domestic workers have separate rules. The Ministry of Human Resources (HRSD) also has an official calculator.
Did the 2025 Labor Law amendments change the end-of-service award?
No. The amendments in force from 19 February 2025 added a resignation procedure (Article 79 bis), but Articles 84 to 88, which set the award, were not amended.
Is the award paid if my fixed-term contract simply ends?
Yes. The two-year minimum applies only to resignation. When a contract expires or the employer ends it, the full Article 84 award is due for all service, including part-years.
Sources
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