Every worker in the Saudi private sector is owed an end of service award when the job ends. The amount depends on your last wage, your length of service and why the job ended.
The basic formula
Article 84 of the Saudi Labour Law gives half a month's wage for each of the first five years and one month's wage for each year after, with part years paid in proportion. Example: wage SAR 8,000 and 6 years 6 months of service gives 5 × SAR 4,000 = SAR 20,000, plus 1.5 × SAR 8,000 = SAR 12,000. Total SAR 32,000.
If you resign
Article 85 reduces the award when you resign: nothing under 2 years, one third from 2 to under 5 years, two thirds from 5 to under 10 years and the full award after 10 years. With the example above (6.5 years), resigning gives two thirds: SAR 21,333.33.
Article 87 keeps the full award in some cases, even if you resign: force majeure, a woman who leaves within six months of marriage or three months of giving birth, and a worker who leaves because the employer broke the contract or treated them unlawfully (Article 81).
When you lose it
Dismissal under Article 80 for serious misconduct, such as assault, fraud or long unexcused absence, ends the right to the award.
Which wage counts
The award uses your last wage. In practice this is normally basic salary plus housing, transport and other fixed allowances. Overtime, commission and one-off bonuses are generally left out.
What changed in 2025
The amendments that took effect in February 2025 did not change the end of service formula. They did change notice for open-ended contracts: at least 30 days when the worker resigns and 60 days when the employer ends the contract.
When it must be paid
Within one week of the end of the contract if the employer ended it, and within two weeks if the worker did (Article 88).
Quick check
Use the Saudi end of service calculator for your own dates, the SAR 5,000 and SAR 10,000 tables for quick figures, or the Saudi final settlement calculator to add leave and notice.
Sources
- Saudi Labour Law (Royal Decree M/51), as amended with effect from February 2025
- Ministry of Human Resources and Social Development (HRSD)
- Qiwa
Want the exact figure for your case?
Open the Saudi end of service calculator