Saudi Arabia Gratuity Calculator for Resignation
Find out your share of the end-of-service award on resignation under Article 85 of the Saudi Labor Law: one-third, two-thirds or the full award depending on your length of service.
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 85 — fraction depends on length of service
🔒 Worked out in your browser — nothing is sent to a server
Your end-of-service award
30,000.00 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 |
| Award before the entitlement fraction | 45,000.00 | |
| EntitlementSaudi Labor Law, Article 85 — award on resignation | two-thirds | |
- ⚠ Because you resigned, you are entitled to two-thirds of the award under Article 85.
How it's calculated
The end-of-service award is first calculated under Article 84 on the last wage (basic salary plus fixed allowances): 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 pro rata. The entitlement fraction for resignation is then applied to that total.
Article 85 sets the fraction by length of continuous service: no award if the worker resigns before completing two years, one-third if service has reached two years and does not exceed five, two-thirds if it exceeds five years but is under ten, and the full award at ten years or more. A worker who resigns at exactly five years therefore receives one-third, not two-thirds.
By exception, Article 87 grants the full award when the worker leaves because of force majeure beyond his control, and to a female worker who ends the contract within six months of marriage or within three months of childbirth. A worker who leaves without notice for one of the reasons in Article 81, such as the employer failing to meet its essential obligations, assaulting the worker or exposing him to serious danger at work, also keeps all rights in full.
- Under two years: no award on resignation
- Two to five years (including exactly five): one-third of the award
- More than five years and under ten: two-thirds of the award
- Ten years or more, or the Article 81 and Article 87 cases: the full award
Worked example
An employee whose last monthly wage is 10,000 SAR hands in his resignation. Here is his share under Article 85 at different lengths of service.
- After 3 years: total 3 × 5,000 = 15,000 SAR, one-third due = 5,000 SAR
- After exactly 5 years: total 5 × 5,000 = 25,000 SAR, one-third due = 8,333.33 SAR because service did not exceed five years
- After 7 years: total 25,000 + 2 × 10,000 = 45,000 SAR, two-thirds due = 30,000 SAR
- After 12 years: total 25,000 + 7 × 10,000 = 95,000 SAR, full award = 95,000 SAR
Had the employer ended the contract in any of these cases, the full award would be paid under Article 84: 45,000 SAR after 7 years instead of 30,000 SAR. That is why the timing of a resignation matters for anyone close to completing the fifth or the tenth year.
FAQ
I resigned before completing two years. Am I owed an award?
No. Under Article 85 no award is due on resignation before two consecutive years of service, unless one of the Article 87 cases applies (force majeure, or a female worker ending the contract within six months of marriage or three months of childbirth), in which case the full award is paid.
I completed exactly five years and then resigned. Do I get one-third or two-thirds?
One-third. Article 85 grants one-third to a worker whose service does not exceed five years, and two-thirds only begins once service exceeds five years. On a 10,000 SAR wage that means 8,333.33 SAR instead of 16,666.67 SAR.
Do allowances count in the award of a resigning worker?
Yes. The award is calculated on the last actual wage, meaning the basic salary plus fixed allowances such as housing and transport, and the Article 85 fraction is then applied to it. Enter your allowances in the dedicated field so they are included.
I resigned because of marriage or childbirth. Is the award reduced?
No. Article 87 grants a female worker the full award if she ends the contract within six months of the date of the marriage contract or within three months of the date of childbirth, without applying the Article 85 fractions. Select the matching special case in the calculator.
What is the difference between resignation and leaving under Article 81?
Resignation is the worker's own decision and is subject to the Article 85 fractions, whereas leaving under Article 81 is termination without notice because of the employer's breach, such as failing to meet essential obligations, fraud at the time of contracting, assault or a serious danger to safety, and the worker keeps all rights in full, including the full award.
When is the award paid to a resigning worker?
Under Article 88 the employer must settle the worker's entitlements within no more than two weeks of the end of the relationship if the worker ended the contract, and within one week if the employer ended it.
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)