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Saudi Arabia End of Service Calculator (2026)

The Saudi end of service award = half a month's wage for each of the first 5 years and a full month's wage for each year after, worked out on the last wage including allowances (Labour Law, Article 84). If the employee resigns, Article 85 pays nothing under 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years, and the full award after 10 years.

The rules in Saudi Arabia

LawSaudi Labour Law (Royal Decree M/51), Articles 84 to 88
Wage usedLast actual wage: basic plus allowances such as housing and transport
AwardHalf a month's wage per year for the first 5 years; a full month per year after
Part yearsPaid in proportion
MaximumNone
Resignation (Art. 85)Under 2 years: nothing. 2 to 5 years: one third. 5 to 10 years: two thirds. 10 years or more: full
Full award despite resigning (Art. 87)Force majeure, or a woman leaving within 6 months of marriage or 3 months of giving birth
Payment deadline (Art. 88)Within 1 week if the employer ended the contract, 2 weeks if the employee did

Worked example

Last wage SAR 12,000 a month (basic + housing + transport), 7 years and 6 months of service.

First 5 years: 0.5 × 12,000 × 5 = SAR 30,000. Remaining 2.5 years: 12,000 × 2.5 = SAR 30,000. Full award SAR 60,000. If the employee resigned, two thirds apply (5 to 10 years): SAR 40,000.

The official calculator

The Ministry of Human Resources and Social Development runs its own end of service calculator. Use it to double-check the final figure; this page explains each step of the sum so you can see where it comes from.

When nothing is paid

An employee dismissed under Article 80 (for example serious misconduct, assault or fraud) loses the award. The February 2025 amendments to the Labour Law changed probation, notice and resignation procedure but did not change the award formula.

For employers: gratuity is one line of what a role costs

Gratuity, leave, statutory contributions and notice periods all sit on top of salary. Routine back-office roles such as data entry, follow-ups, reconciliations and reporting can be handed to AI workers that carry none of these costs. Book a free automation audit and we will put your own figures on it.

Please note: this calculator follows the published law and common practice as checked on 21 October 2026. It is a guide, not legal advice. Contracts can give more than the legal minimum, and special cases (part-time work, free zones, disputes) can change the figure, so confirm the final amount with your HR team or a lawyer before paying or accepting a settlement.

Questions people ask

How is end of service calculated in Saudi Arabia?
Half a month's last wage for each of the first five years and a full month's wage for each later year, with part years in proportion. The wage includes allowances.
What do I get if I resign in Saudi Arabia?
Nothing under two years of service, one third of the award between two and five years, two thirds between five and ten years, and the full award after ten years.
Is end of service based on basic salary?
No. Saudi law uses the actual wage, which includes regular allowances such as housing and transport.
Is there a cap on the Saudi end of service award?
No. There is no maximum.
When must the award be paid?
Within one week if the employer ended the contract and within two weeks if the employee did.

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