End of Service Calculation in Saudi Arabia
How to calculate the end-of-service award under Saudi Labor Law (Articles 84–85): the wage used, resignation fractions, and examples at 3, 7, 12 years.
End-of-service award calculator
Work out the end-of-service award under Articles 84 and 85 of the Saudi Labor Law: resignation, termination or contract end, with the formula.
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End-of-service award calculator
The award
30,000.00 SAR
Two thirds of the award
- First five years (half a month a year)
- 25,000.00
- After five years (a month a year)
- 20,000.00
- Full award
- 45,000.00
(5 × 10,000.00 ÷ 2) + (2 × 10,000.00) = 45,000.00 × 2/3 = 30,000.00
An estimate under Articles 84 and 85 of the Saudi Labor Law; it does not cover dismissal under Article 80 or better terms agreed in the contract. Not legal advice: confirm with HRSD or your adviser.
How the award is worked out
Article 84: half a month's wage for each of the first five years and a month's wage for each year after, on the last wage, fractions of a year pro rata.
Article 85 on resignation: nothing before two years, a third from two to under five, two thirds from five to under ten, all of it from ten years.
| Service | Resignation | Termination or contract end |
|---|---|---|
| Under 2 years | Nothing | Full |
| 2 to under 5 years | 1/3 | Full |
| 5 to under 10 years | 2/3 | Full |
| 10 years or more | Full | Full |
Frequently asked questions
How is the end-of-service award worked out in Saudi Arabia?
Under Article 84 of the Labor Law: half a month's wage for each of the first five years and a full month's wage for each year after, on the last wage, with fractions of a year pro rata.
What does a worker get on resignation?
Under Article 85: nothing under two years of service, a third of the award from 2 to under 5 years, two thirds from 5 to under 10 years, and all of it from 10 years.
And when the employer ends the contract or it expires?
The worker gets the full award under Article 84, unless the dismissal is for one of the Article 80 reasons, which carry no award.
Which wage is the award based on?
On the worker's last wage. Enter the monthly wage the award is based on, and confirm which allowances it includes with HRSD or your adviser.
Can a worker who leaves still get the full award?
Yes. Article 87 lists cases such as leaving because of force majeure, and a female worker ending her contract within six months of marriage or three months of giving birth. Pick «Ended by the employer» to see the full award.
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