Saudi end-of-service award calculator: The award, and what a
resignation takes off it.
Enter the last wage, the dates and how the contract ended, and see the end-of-service award under Articles 84 to 87 of the Saudi Labour Law, worked out step by step.
Estimated end-of-service award
5.00 years of serviceSAR 8,333.33
Resignation with two to five years of service: one third of the award.
How this was worked out
- First 5.00 years at half a month's wage
- SAR 25,000.00
- After resignation adjustment
- SAR 8,333.33
DenwaysHR keeps the service dates, wage history and leave this figure depends on for teams in Saudi Arabia. Payroll runs in the UAE only.
DenwaysHR in Saudi ArabiaIndicative only. This calculator applies Saudi Arabia labour law to the figures you enter. Contracts, unpaid leave and outstanding dues can all change the result. Confirm the final amount with your legal adviser before paying or accepting it.
How the end-of-service award is calculated in Saudi Arabia
The Saudi end-of-service award comes from Articles 84 to 87 of the Labour Law. It is worked out on the last wage, allowances included, and a resignation can reduce it.
The Saudi rules the calculator applies
- It is calculated on the last wage: basic wage plus the allowances that are due, such as housing and transport
- Half a month's wage for each of the first five years of service
- One month's wage for each year after the fifth
- Parts of a year count in proportion to the time worked
- Resignation under two years of service: no award
- Resignation from two to five years: one third. Over five and under ten: two thirds. Ten years or more: the full award
- Article 87 pays the full award on resignation after force majeure, or when a woman leaves within six months of marriage or three months of giving birth
The employer and worker may agree that commissions and similar variable pay are left out of the wage the award is worked out on. Enter the wage your contract uses.
A worked example
Last wage of SAR 9,000 a month (basic 6,000, housing 2,250, transport 750), eight years of service, contract ended by the employer.
- First five years (5 × half of 9,000)
- SAR 22,500
- Years six to eight (3 × 9,000)
- SAR 27,000
- End-of-service award
- SAR 49,500
Had the same employee resigned, eight years falls in the five-to-ten band and the award is two thirds of that: SAR 33,000.
How is end of service calculated in Saudi Arabia?
Take the last monthly wage, allowances included. The award is half of that for each of the first five years of service and the full monthly wage for each year after, with part years counted in proportion. If the employee resigned, the result is then reduced according to length of service.
Is the Saudi end-of-service award calculated on basic or total salary?
On the wage, which the Labour Law defines as the basic wage plus the increases due, such as housing and transport allowances. The contract may leave out commissions and similar variable pay. This is the main difference from the UAE, where gratuity is worked out on basic salary only.
How much end of service do I get if I resign in Saudi Arabia?
Nothing with under two years of service, one third of the award from two to five years, two thirds from over five to under ten years, and the full award at ten years or more.
When is the full award paid even though the employee resigned?
Under Article 87, when the worker leaves because of force majeure, or when a woman ends her contract within six months of her marriage or within three months of giving birth. In those cases the reduction for resignation does not apply.
Can I rely on the figure this calculator gives?
The calculator applies the formula in the Labour Law and shows every step. The wage figure and the exact dates decide the result, and the contract may be more generous, so use it as a check and confirm a final settlement with your HR team or legal adviser.
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