Saudi Arabia Gratuity Calculator with Partial Years and Unpaid Leave
Calculate your Saudi end-of-service award when your service includes incomplete months and days or unpaid leave, under Articles 84 and 116 of the Labor Law.
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
Unpaid leave beyond 20 days suspends the contract (Article 116); enter the total days and they are deducted from service.
🔒 Worked out in your browser — nothing is sent to a server
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
Article 84 of the Labor Law entitles the worker to an award for fractions of a year in proportion to the time worked, on top of half a month's wage for each of the first five years and a full month's wage for each year after that, calculated on the last wage. This calculator divides months by 12 and days by 365, the method used by the Ministry of Human Resources and Social Development calculator.
Unpaid leave is governed by Article 116: with the employer's consent the worker may take leave without pay for a period the two parties agree on, and the contract is deemed suspended for the part of that leave exceeding twenty days unless the parties agree otherwise. Unpaid leave days are deducted from the service period before the formula is applied, so 7 years of service with 60 unpaid days is calculated as 6 years and 10 months.
Because the law suspends the contract without spelling out how the period is deducted from the award, practice can differ for long unpaid leave or where the contract makes its own arrangement, so confirm the accepted method with the Ministry of Human Resources and Social Development before relying on the figure. Once the total is calculated, the Article 85 resignation fractions apply if the employment ended by resignation.
- Fractions of a year: months ÷ 12 and days ÷ 365, multiplied by half the wage or the full wage depending on the year
- Unpaid leave days are deducted from the service period before the calculation (Article 116)
- Annual leave, public holidays and statutory sick leave remain part of the service period
- No minimum service when the employer ends the contract, and no award on resignation before two years (Article 85)
Worked example
An employee whose last monthly wage is 10,000 SAR is terminated by the employer after 5 years, 6 months and 10 days of service.
- First five years: 5 × 0.5 × 10,000 = 25,000 SAR
- Fraction of the sixth year: (6 ÷ 12 + 10 ÷ 365) = 0.5274 of a year × 10,000 = 5,273.97 SAR
- Total award: 25,000 + 5,273.97 = 30,273.97 SAR
Another employee on the same wage served 7 years but took 60 days (two months) of unpaid leave: his service counts as 6 years and 10 months, so he is owed 25,000 + (1 + 10 ÷ 12) × 10,000 = 43,333.33 SAR instead of 45,000 SAR.
FAQ
How is a fraction of a year calculated in the end-of-service award?
Article 84 grants an award for fractions of a year in proportion to the time the worker spent in service. The calculator divides months by 12 and days by 365 as the Ministry calculator does, so six months count as 0.5 of a year and 10 days as 0.0274 of a year, and the result is multiplied by half the wage or the full wage depending on which year it falls in.
Does unpaid leave count as service?
Under Article 116 the contract is deemed suspended for the part of unpaid leave exceeding twenty days unless agreed otherwise, so unpaid leave days are deducted from the service period before the calculation. Because practice can differ for long unpaid leave, confirm the accepted method with the Ministry.
How do I enter unpaid leave in the calculator?
Enter the total unpaid days in the “Unpaid leave days” field and the calculator deducts them from your service automatically, treating a month as 30 days when you enter a duration: 7 years with 60 unpaid days count as 6 years and 10 months. If the leave was 20 days or less, the contract is not suspended under Article 116, so enter 0.
Is annual leave or sick leave deducted from the service period?
No. Paid annual leave under Article 109, public holidays and statutory sick leave under Article 117 are part of the service period and are not deducted; only days of leave without pay are subtracted.
Can a fraction of a year change the resignation fraction?
It can. The Article 85 thresholds (two, five and ten years) are measured by actual service, so a worker who resigns after 5 years and 10 days receives two-thirds because service exceeded five years, while a worker who resigns at exactly 5 years receives one-third. Subtracting unpaid leave can also push the period below one of these thresholds.
I served only 11 months and my contract was terminated. Am I owed an award?
Yes. Article 84 sets no minimum service when the employer ends the contract or the contract expires, so the award is 11 ÷ 12 of half a month's wage, which is 4,583.33 SAR on a 10,000 SAR wage. On resignation, however, nothing is due before two years under Article 85.
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)