How is end of service calculated in Saudi Arabia?
Article 84 of the Saudi Labor Law sets the award based on the actual length of service, using the last wage:
| Service period | Award |
|---|---|
| Each of the first 5 years | Half a month’s wage |
| Each year after the fifth | A full month’s wage |
Parts of a year count proportionally. For example, 7 years on a 10,000 SAR wage gives (5 × 5,000) + (2 × 10,000) = 45,000 SAR. The reason for leaving then decides how much of that you receive.
How much you get, by reason for leaving
- Terminated by the employer, or the contract ended: 100% of the award, whatever the length of service.
- Resignation with less than 2 years: no award.
- Resignation after 2 to less than 5 years: one third of the award.
- Resignation after 5 to less than 10 years: two thirds of the award.
- Resignation after 10 years or more: the full award.
- Article 87 cases: the full award, whatever the length of service, for a worker who leaves due to force majeure beyond their control, and for a female worker who ends the contract within 6 months of her marriage or 3 months of giving birth.
- Dismissal for serious misconduct under Article 80: no award.
Which wage is used?
The last wage: the basic salary plus fixed allowances that are part of the monthly pay under the contract, such as housing or transport. Variable commissions and bonuses are usually not included.
Frequently Asked Questions
Is the award calculated the same way for fixed-term contracts?
Yes. If a fixed-term contract simply ends without renewal, the employee is treated as terminated by the employer and receives the full award, whatever the length of service.
Do months and days count, or only full years?
They count. The award is proportional to the exact length of service, including parts of a year. This calculator counts calendar years exactly, so leap years don’t distort the result.
I resigned after getting married or giving birth. Do I get the full award?
Yes. Under Article 87, a female worker receives the full award if she ends the contract within 6 months of her marriage contract or 3 months of giving birth, even with less than 2 years of service. Choose “Article 87” as the reason.
Is there a maximum end of service award?
No. The law sets no cap on the total award; it simply accumulates with each year of service according to the table above.
Does this apply to other Gulf countries?
No. This calculator follows the Saudi Labor Law only. The UAE, Qatar, Kuwait and other countries have their own gratuity rules and rates.