How the Saudi end of service award is calculated
Article 84 of the Saudi Labour Law sets the award from your last wage:
- Half a month's wage for each of the first five years.
- One month's wage for each year after five years.
- Part years are paid in proportion to the time worked.
There is no cap and no minimum service when your employer ends the contract or a fixed-term contract expires.
If you resign (Article 85)
| Service when you resign | Share of the award |
|---|---|
| Under 2 years | Nothing |
| 2 to under 5 years | One third |
| 5 to under 10 years | Two thirds |
| 10 years or more | Full award |
Article 87 gives the full award even on resignation in some cases: 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 under Article 81. Dismissal for serious misconduct under Article 80 loses the award.
Worked examples (wage SAR 6,000)
| Service | Employer ended it | You resigned |
|---|---|---|
| 1 years | SAR 3,000 | SAR 0 |
| 3 years | SAR 9,000 | SAR 3,000 |
| 5 years | SAR 15,000 | SAR 10,000 |
| 7 years | SAR 27,000 | SAR 18,000 |
| 10 years | SAR 45,000 | SAR 45,000 |
| 15 years | SAR 75,000 | SAR 75,000 |
Example for 7 years: 5 × SAR 3,000 = SAR 15,000 for the first five years, plus 2 × SAR 6,000 = SAR 12,000. Total SAR 27,000, or two thirds (SAR 18,000) if you resigned.
More for Saudi Arabia
See the award for common wages in the SAR 5,000, SAR 8,000 and SAR 10,000 tables, add leave and notice with the Saudi final settlement calculator, or compare countries in the GCC gratuity comparison.
Sources
- Saudi Labour Law (Royal Decree M/51), as amended with effect from February 2025
- Ministry of Human Resources and Social Development (HRSD)
- Qiwa