Saudi Arabia End-of-Service Gratuity Calculator
Know your end-of-service award under the Saudi Labor Law (Articles 84 and 85), in seconds.
Housing, transport and other regular allowances. The award is calculated on the last actual wage (basic + allowances).
Monthly wage used in the calculation: 10,000.00 SAR
Article 84 — full award
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Your end-of-service award
45,000.00 SAR
Based on a 10,000.00 SAR monthly wage and 7 years of service
Breakdown
| Period | Years | Amount |
|---|---|---|
| First five yearsHalf a month's wage per year | 5 | 25,000.00 |
| After the fifth yearOne month's wage per year | 2 | 20,000.00 |
How it's calculated
Under Article 84 of the Saudi Labor Law, a worker whose employment ends is owed an end-of-service award calculated on the last wage: half a month's wage for each of the first five years and a full month's wage for each year after that, with fractions of a year paid pro rata.
The wage here is the actual wage, meaning the basic salary plus fixed allowances such as housing and transport (Article 2), not the basic salary alone.
If the employment ends because the worker resigns, the Article 85 fractions apply: nothing before two years, one-third of the award from two to five years, two-thirds if service exceeds five years but is under ten, and the full award at ten years or more.
- First five years: half the monthly wage × number of years
- After the fifth year: the full monthly wage × number of years
- Fractions of a year: months ÷ 12 and days ÷ 365
- The award is forfeited in the Article 80 dismissal cases, and paid in full in the Article 81 and Article 87 cases even on resignation
Worked example
An employee whose last monthly wage is 10,000 SAR (8,000 basic + 2,000 housing allowance) is terminated by the employer after 7 years of service.
- First five years: 5 × 0.5 × 10,000 = 25,000 SAR
- Next two years: 2 × 1 × 10,000 = 20,000 SAR
- Total award: 25,000 + 20,000 = 45,000 SAR
Had the same employee resigned after 7 years, only two-thirds would be due: 30,000 SAR under Article 85.
FAQ
Do allowances count towards the Saudi end-of-service award?
Yes. The award is calculated on the last actual wage, which is the basic salary plus fixed allowances such as housing and transport. This differs from the UAE, where only the basic salary counts.
I resigned before completing two years. Am I owed anything?
No. Under Article 85 no award is due on resignation before two consecutive years of service, except in the Article 87 cases (force majeure, or a female worker ending the contract within six months of marriage or three months of childbirth), where the full award is paid.
What is the difference between termination by the employer and resignation?
On termination by the employer or expiry of the contract the full award is paid under Article 84. On resignation the Article 85 fractions apply: one-third from two to five years, two-thirds if service exceeds five years but is under ten, and the full award at ten years or more.
How are partial years calculated?
Article 84 entitles the worker to a pro-rata award for fractions of a year. This calculator divides months by 12 and days by 365, the convention used by the Ministry of Human Resources and Social Development calculator.
Does the award apply to fixed-term contracts?
Yes. Expiry of a fixed-term contract is a normal end of the employment relationship and the full award is paid under Article 84. If the worker resigns before the term ends, the Article 85 fractions apply.
When must the employer pay the award?
Under Article 88 the employer must settle the worker's entitlements within one week of the end of the relationship if the employer ended it, and within no more than two weeks if the worker ended the contract.
Related tools
Sources
✓ Reviewed September 2026- Labor Law — Royal Decree No. M/51 dated 23/8/1426H (Bureau of Experts at the Council of Ministers)
- Labor Law, consolidated text (PDF, Arabic) — Ministry of Human Resources and Social Development
- End-of-service benefit calculator — Ministry of Human Resources and Social Development
Statutory articles this calculator applies
- Saudi Labor Law, Article 84 — end-of-service award
- Saudi Labor Law, Article 2 — definition of the actual wage
- Saudi Labor Law, Article 85 — award on resignation
- Saudi Labor Law, Article 80 — dismissal without award
- Saudi Labor Law, Article 81 — leaving without notice with full rights
- Saudi Labor Law, Article 87 — cases keeping the full award
- Saudi Labor Law, Article 116 — unpaid leave and suspension of the contract
Saudi Labor Law — Royal Decree No. M/51 dated 23/8/1426H (27 Sep 2005), as amended (latest amendment Royal Decree No. M/44 of 1446H, in force 2025-02-18)