Saudi Arabia Final Settlement Calculator

1. 1Settlement = gratuity + leave encashment + notice pay + unpaid salary
2. 2Each part is worked out by its own rule, on whichever wage its own article prescribes
3. 3A part your country's law does not provide is left out entirely, not shown as zero

Symbols

gratuity

End-of-service gratuity, on whichever wage its governing article prescribes

leave encashment

The unused balance, which may be paid on a different wage from the gratuity

notice pay

For the days of notice you were not given, and only those

What is a final settlement worth after 7 years?

An employee on a last monthly wage of 10,000 SAR (8,000 basic + 2,000 allowances) is terminated by the employer after 7 years of service, with 30 unused leave days, a required notice period of 60 days of which none was served, and 10 days of unpaid salary.

1. End-of-service gratuity: 5 × 0.5 × 10,000 + 2 × 1 × 10,000 = 45,000 SAR
2. Unused leave: 30 days × (10,000 ÷ 30) = 10,000 SAR
3. Notice pay: 60 unserved days × 333.33 = 20,000 SAR
4. Unpaid salary: 10 days × 333.33 = 3,333.33 SAR
5. Total settlement: 45,000 + 10,000 + 20,000 + 3,333.33 = 78,333.33 SAR

Had the same employee resigned instead of being terminated, only the award would change: two-thirds under Article 85, so 30,000 SAR instead of 45,000, bringing the total down to 63,333.33 SAR on the same inputs. The unused leave, the notice pay and the unpaid salary are not affected by the reason for leaving.

How do the parts add up, and which might not apply to you?

When employment ends, the gratuity is only part of what you are owed. Alongside the award under Articles 84 and 85 you are due a cash payment for your unused annual leave under Articles 109 and 111, pay for any notice period that was not served under Articles 75 and 76, and the wage for days you have worked but not been paid for. This calculator sums all four into the single figure you should be comparing your clearance statement against before you sign it.

In Saudi Arabia the first three components are all calculated on the last actual wage, meaning the basic salary plus fixed allowances (Article 2), and the monthly wage is divided by 30 to get the daily rate. That basis is not the same across the Gulf: in Qatar, for example, the award is calculated on the basic wage alone while unused leave is cashed out at the full wage, so always use the page for the country your contract falls under.

Every line here is produced by the same engine that powers its own dedicated page, so the number on this page can never disagree with the number on that one; expand any line to see its breakdown and follow the link to the full calculation. If the employer's figure differs from this total, compare it line by line to find where the gap sits. Under Article 88 the employer must settle your entitlements within one week of the end of the relationship if the employer ended it, and within no more than two weeks if you ended the contract.

• End-of-service gratuity: half a month's wage per year for the first five years and a full month per year after that (Article 84), reduced by the Article 85 fractions on resignation
• Unused leave: 21 days a year rising to 30 after five consecutive years, cashed out at the last wage when the relationship ends (Articles 109 and 111)
• Notice pay: 60 days when the employer terminates and 30 days on resignation (Article 75); whoever does not observe the notice owes the wage for the part not served (Article 76)
• Unpaid salary: the wage for days already worked but not yet paid, at the daily rate, with no special statutory rule