🇸🇦 Saudi End of Service
Calculate your end-of-service award in Saudi Arabia from your last wage, service dates and whether you resigned or your contract ended.
Quick answer: In Saudi Arabia the end-of-service award is half a month’s wage for each of the first 5 years and a full month’s wage for each year after. For example, SAR 12,000 a month for 7 years gives SAR 54,000 (SAR 30,000 + SAR 24,000) – or two-thirds, SAR 36,000, on resignation.
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Saudi End of Service inputs
Result
End-of-service award
SAR 63,369.86
7.78 years of service · full award
| First 5 years (½ month per year) | SAR 30,000.00 |
| After 5 years (1 month per year) | SAR 33,369.86 |
| Full award | SAR 63,369.86 |
- Service
- 2,840 days
- Monthly wage
- SAR 12,000.00
How the Saudi end-of-service award works
Private-sector employees in Saudi Arabia are entitled to an end-of-service award when their employment ends. It depends on the last monthly wage, the length of service and how the contract ended.
Award = (½ × Wage × first 5 years) + (1 × Wage × years after 5) · On resignation: × 0, ⅓, ⅔ or 1 depending on service
Worked example
An employee earning SAR 12,000 a month (basic + housing) leaves after exactly 7 years:
- First 5 years: 5 × 6,000 = SAR 30,000
- Next 2 years: 2 × 12,000 = SAR 24,000
- Full award: SAR 54,000
- If they resigned (5–10 years): ⅔ × 54,000 = SAR 36,000
Resignation reductions (Article 85)
| Years of service | Share of award on resignation |
|---|---|
| Less than 2 | None |
| 2 to less than 5 | One third |
| 5 to less than 10 | Two thirds |
| 10 or more | Full award |
Estimates for educational purposes based on the Saudi Labour Law. Your contract, any Labour Law amendments and HRSD guidance take precedence – confirm with your employer.
Frequently asked questions
How is end of service calculated in Saudi Arabia?
Under Article 84 of the Saudi Labour Law you receive half a month’s wage for each of the first five years of service and one month’s wage for each following year, based on your last wage. Partial years are paid proportionally.
What happens if I resign?
Under Article 85, resigning before 2 years gives no award; after 2 but before 5 years you receive one third; after 5 but before 10 years two thirds; and after 10 years the full award.
Which wage is used – basic or total?
The law uses the last “wage”, which typically includes basic salary plus fixed allowances such as housing, unless your contract defines it differently. Commissions and variable bonuses are usually excluded.
Do I get the full award if my contract ends or I am terminated?
Yes – when a fixed-term contract expires or the employer ends the contract (other than for misconduct under Article 80), the full award applies. Certain cases such as resigning due to force majeure or, for women, within six months of marriage or three months of childbirth, also receive the full award.