Saudi End-of-Service Calculator
Estimate the end-of-service award under the Saudi Labor Law. Article 84 gives half a month's wage for each of the first five years and a full month's wage for each year after that. Article 85 reduces the award when the employee resigns, depending on how long they worked.
Enter the last monthly wage, the first day of work, the last working day and how the job ended. The result and every step of the sum appear as you type. Nothing you enter leaves your browser.
Estimated end-of-service award
Enter the monthly wage and the first day of work to see the result.
For employees covered by the Saudi Labor Law in the private sector. Civil servants and domestic workers fall under other rules, and a contract or the company's work regulations can give more than the law.
This calculator gives an estimate, not legal advice. Rules checked on 6 November 2026 against the Saudi Labor Law (Articles 2 and 84 to 88) as published by the Bureau of Experts at the Council of Ministers, including the amendments of Royal Decree M/44. A contract, work regulations or a Labor Court ruling may give a different amount.
How the Saudi end-of-service award is calculated
Four steps from the Labor Law. The calculator does each one for you.
- 1
Count the service
Count the time from the first day of work to the last working day. Part years count in proportion to the time worked (Article 84).
- 2
Take the last monthly wage
The award uses the last wage. The law defines the wage as the actual wage: basic salary plus the allowances set in the contract, such as housing and transport (Article 2). The contract can leave commissions and sales percentages out (Article 86).
- 3
Work out the full award
Half a month's wage for each of the first five years, and one month's wage for each year after that (Article 84).
- 4
Apply the resignation share, if any
An employee who resigns gets a share of the full award that depends on their service (Article 85). Some cases get the full award anyway (Article 87).
The formula
- Full award = (0.5 × years up to 5 + 1 × years after 5) × last monthly wage
- After a resignation: nothing, one third, two thirds or all of the full award, by length of service
| Continuous service | Share of the full award |
|---|---|
| Less than 2 years | Nothing |
| 2 to 5 years | One third |
| More than 5 and less than 10 years | Two thirds |
| 10 years or more | The full award |
Worked example
An employee resigns after 7 years. The last monthly wage is SAR 12,000: basic salary of SAR 9,000, housing of SAR 2,250 and transport of SAR 750.
- First 5 years: 5 × half a month = 2.5 months
- The other 2 years: 2 × one month = 2 months
- Full award: 4.5 months × SAR 12,000 = SAR 54,000
- Resigned after more than 5 and less than 10 years: two thirds
- 54,000 × 2 ÷ 3 = SAR 36,000
Award due: SAR 36,000. If the employer had ended the contract instead, the full SAR 54,000 would be due.
Questions about the end-of-service award in Saudi Arabia
Is the award based on basic salary or total salary?
On the wage, which the Labor Law defines as the actual wage: the basic salary plus the allowances the contract or the work regulations give the employee, such as housing and transport (Article 2). Commissions and sales percentages can be left out if the parties agreed to that (Article 86). The last wage before the end of service is the one used.
What does an employee get after resigning?
Under Article 85: nothing with less than two years of continuous service, one third of the award after two to five years, two thirds after more than five and less than ten years, and the full award after ten years or more. Article 87 gives the full award anyway when the employee leaves because of force majeure, or when a female employee ends the contract within six months of her marriage contract or three months of giving birth. An employee who leaves without notice for one of the employer faults listed in Article 81 keeps all statutory rights.
Can an employee lose the award completely?
Yes, in the cases listed in Article 80. The employer may end the contract without an award, notice or compensation if, for example, the employee assaulted the employer or a manager, used forgery to get the job, kept breaching basic duties after a written warning, or was absent without a valid reason for longer than the law allows after written warnings. The employee must get a chance to object first. This calculator does not cover those cases.
When must the award be paid?
If the employer ended the relationship, within one week of the end date. If the employee ended the contract, within two weeks (Article 88). The employer may deduct any debt the employee owes because of the work.
Did the 2025 Labor Law amendments change the award?
Not the calculation. Royal Decree M/44 (8/2/1446 AH), in force from 20/8/1446 AH (about 19 February 2025), changed many articles and added a legal definition of resignation. The consolidated law on the Bureau of Experts site shows Articles 84 to 88, which set the award, the resignation shares and the exceptions, unchanged. We checked on 6 November 2026.
Are the years Hijri or Gregorian?
The Labor Law counts periods in the Hijri calendar unless the contract or the work regulations say otherwise (Article 10). This calculator counts Gregorian days, with 365 days in a year. A Hijri year is about 11 days shorter, so if your contract uses Hijri dates, the service and the award come out slightly higher.
Track every employee's end-of-service award
This calculator answers the question for one person on one day. An employer needs the same answer for the whole team, every month, as wages rise and service grows.
TracefyHR shows the end-of-service amount each employee has earned so far and the total for the company. For Saudi companies you set the rule once in Settings, in tiers: 15 days' pay a year for the first five years and 30 days after. It works from each person's start date and the basic salary you record, or the gross salary when no basic is set. It does not apply the Article 85 resignation shares, so use this calculator when someone resigns.
- Accrued award per employee and the company total
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