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Saudi Arabia end-of-service award calculator

The end-of-service award in Saudi Arabia is a payment due under the Labor Law when an employment contract ends, based on the worker's last actual wage, including allowances, and the length of service.

Work out the Saudi end-of-service award: half a month's wage a year for five years, then a full month, cut to a third or two thirds on resignation.

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Articles 84 to 87 of the Saudi Labor Law as described in the HRSD awareness guide published in December 2025, after the amendments in force from 19 February 2025. Reviewed 30 October 2026.

An estimate. It does not cover dismissal under Article 80 or termination during probation (no award), and it does not include compensation for unfair dismissal, which is separate. Whether the resignation reductions apply when a worker ends an open-ended contract is disputed after the 2025 amendments.

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Inputs

Saudi Arabia: the full last wage, including housing, transport and other allowances. UAE and Qatar: basic wage only.

Result

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End-of-service awardSAR 8,000.00
Service4 years, 0 months, 0 days
Full awardSAR 24,000.00
Share of awardOne third

Use the last actual wage: basic pay plus housing, transport and other allowances (Art. 84). Commissions and sales percentages can be excluded by agreement (Art. 86).

The full award applies whatever the length of service if the worker leaves because of force majeure, or if a female worker ends the contract within 6 months of her marriage contract or 3 months of giving birth (Art. 87). Choose Termination or Contract end to see the full award.

Since the 2025 amendments, resignation is defined as notice to end a fixed-term contract. Whether the Art. 85 reductions apply when a worker ends an indefinite contract is disputed and not settled; check before relying on the reduced figure.

No award is due after a dismissal under Art. 80 (for example for misconduct or long unauthorised absence) or a termination during probation. Unfair-dismissal compensation (Art. 77) is separate and not included.

Saudi Arabia end-of-service breakdown

PartYearsRateAmount
Years 1-54half a month's wage per yearSAR 24,000.00
After year 50one month's wage per yearSAR 0.00
Share of awardone third (resigned after 2 to 5 years)SAR 8,000.00
Country: Saudi Arabia (Labor Law, Arts. 84-88)
Monthly wage (basic plus allowances): SAR 12,000.00
Service: 4 years, 0 months, 0 days (1,461 days counted)
Service in years: 4 (whole years and months, plus remaining days ÷ 365)
Full award: SAR 24,000.00
Reason: resignation; share of award: one third (resigned after 2 to 5 years)
End-of-service award: SAR 8,000.00

Examples

Employer ends the contract after 12 years

Last wage SAR 12,000 a month. First five years: 0.5 × 12,000 × 5 = SAR 30,000. Next seven years: 12,000 × 7 = SAR 84,000. Award SAR 114,000.

Resignation after 4 years

Full award 0.5 × 12,000 × 4 = SAR 24,000. Resigning with 2 to 5 years of service gives one third: SAR 8,000.

Resignation after 7 years

Full award 30,000 + 12,000 × 2 = SAR 54,000. Resigning with 5 to 10 years gives two thirds: SAR 36,000.

Resignation before 2 years

A worker who resigns after 1 year and 11 months receives no award.

Resignation after 10 years or more

A worker who resigns with 10 or more years of service receives the full award, the same as if the employer had ended the contract.

How to use it

  1. Keep the country set to Saudi Arabia and enter the last monthly wage, including housing, transport and other allowances.
  2. Enter the first and last days of work.
  3. Choose how the contract ended. Resignation reduces the award for service under 10 years.
  4. Read the full award, the share due and the amount, then copy, download or print them.

Questions

How is the end-of-service award calculated in Saudi Arabia?
Half a month's wage for each of the first five years of service and one month's wage for each year after that, with part years counted pro rata (Article 84).
Which wage is used?
The last wage the worker received, meaning the actual wage including allowances such as housing and transport. Commissions and sales percentages can be excluded if the contract says so (Article 86).
How does resignation reduce the award?
Under Article 85: no award with less than 2 years of service, one third with 2 to 5 years, two thirds with more than 5 and less than 10 years, and the full award with 10 years or more.
When does a worker who resigns still get the full award?
Under Article 87, when the worker leaves because of force majeure beyond their control, or when a female worker ends the contract within 6 months of her marriage contract or 3 months of giving birth. In those cases, choose Ended by the employer to see the full award.
When is no award due?
When the worker is dismissed under Article 80, for example for serious misconduct or long unauthorised absence after a warning, or when the contract ends during probation.
Did the 2025 Labor Law amendments change the award?
The formula in Articles 84 to 88 is unchanged. The amendments in force from 19 February 2025 added a definition of resignation for fixed-term contracts. Practitioners disagree on whether the Article 85 reductions apply when a worker ends an open-ended contract, so the calculator flags this.
Is my data sent anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded.

Sources

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