Saudi Arabia End-of-Service Gratuity Calculator

Saudi Labor Law, Article 84: end-of-service award
Reviewed September 2026one rule still being checked

Saudi Arabia

Monthly basic salary

SAR

Fixed monthly allowances

SAR

Housing, transport and other regular allowances. The award is calculated on the last actual wage (basic + allowances).

Remember this salary on this device for the other calculators?

Monthly wage used in the calculation: 10,000.00 SAR

How the employment ended

Special case (Articles 80, 81 and 87)

Article 84: full award

Length of service

Years

Months

Days

Worked out on this device. Your figures are not sent anywhere.

Your end-of-service award

Example

45,000.00 SAR

Based on a 10,000.00 SAR monthly wage and 7 years of service

This is the minimum the law sets for the figures you entered, not legal advice.

Breakdown

Period	Years	Amount
First five yearsHalf a month's wage per year	5	25,000.00
After the fifth yearOne month's wage per year	2	20,000.00

What this rests on

Saudi Labor Law, Article 84: end-of-service awardIn force since 26 April 2006

Had you resigned instead of being let go, the award would drop to 30,000.00 SAR. Open the calculator

Next step

To check this, or for anything official:

The end-of-service calculator of the Ministry of Human Resources and Social Development

hrsd.gov.sa

Know your award in SAR under Articles 84 and 85, with every step of the math in front of you.

Enter your last wage and your length of service. Article 84 of the Labor Law gives half a month's wage for each of the first five years and a full month's wage for each year after, and Article 85 sets your share of the award if you resigned. The wage here is the actual wage: the basic plus the allowances due with it, not the basic alone.

Runs in your browser
No sign-up
Nothing leaves your device
Cites the article

How is end-of-service gratuity calculated?

Monthly wage = basic + fixed allowances
First 5 years: wage ÷ 2 × years
After 5 years: wage × remaining years
Gratuity = the two bands added, × the entitlement fraction

Symbols

wage: The last actual wage: basic plus fixed allowances
years: Service including fractions of a year, not whole years only
entitlement fraction: Full on termination or contract expiry, and a share of it on resignation under Art. 85

What is the gratuity on 10,000 and 7 years of service?

An employee whose last monthly wage is 10,000 SAR (8,000 basic + 2,000 housing allowance) is terminated by the employer after 7 years of service.

First five years: 5 × 0.5 × 10,000 = 25,000 SAR
Next two years: 2 × 1 × 10,000 = 20,000 SAR
Total award: 25,000 + 20,000 = 45,000 SAR

Had the same employee resigned after 7 years, only two-thirds would be due: 30,000 SAR under Article 85.

What counts towards the calculation, and what does not?

Under Article 84 of the Saudi Labor Law, a worker whose employment ends is owed an end-of-service award calculated on the last wage: half a month's wage for each of the first five years and a full month's wage for each year after that, with fractions of a year paid pro rata.

The wage here is the actual wage, meaning the basic salary plus fixed allowances such as housing and transport (Article 2), not the basic salary alone.

If the employment ends because the worker resigns, the Article 85 fractions apply: nothing before two years, one-third of the award from two to five years, two-thirds if service exceeds five years but is under ten, and the full award at ten years or more.

First five years: half the monthly wage × number of years
After the fifth year: the full monthly wage × number of years
Fractions of a year: months ÷ 12 and days ÷ 365
The award is forfeited in the Article 80 dismissal cases, and paid in full in the Article 81 and Article 87 cases even on resignation

The same calculation in other Gulf countries

Country	Wage basis	Rate	On resignation
Saudi ArabiaSaudi Labor Law, Article 84: end-of-service award	Basic plus fixed allowances	half a month's wage for the first 5 years, then a month's wage	Reduced by length of service	This page
UAEUAE Federal Decree-Law No. 33 of 2021, Article 51: end-of-service benefits	Basic wage only	21 days of wage for the first 5 years, then 30 days of wage, capped at 24 months of wage, from 1 year of service	No reduction	End-of-service gratuity, UAE
QatarQatar Labour Law No. 14 of 2004, Article 54: end-of-service gratuity	Basic wage only	21 days of wage for every year, from 1 year of service	No reduction	End-of-service gratuity, Qatar
KuwaitKuwait Labour Law No. 6 of 2010, Article 51: end-of-service indemnity	Basic plus fixed allowances	half a month's wage for the first 5 years, then a month's wage, capped at 18 months of wage	Reduced by length of service	End-of-service indemnity, Kuwait
OmanOman Labour Law, Article 61: end-of-service gratuity	Basic wage only	a month's wage for every year, the rule in force now	No reduction	End-of-service gratuity, Oman
BahrainBahrain Labour Law, Article 116: leaving indemnity	Basic wage only	half a month's wage for the first 3 years, then a month's wage	No reduction	Leaving indemnity, Bahrain

Guide: end of service in the Gulf, country by country

Questions people in your position ask

Do allowances count towards the Saudi end-of-service award?

Yes. The award is calculated on the last actual wage, which is the basic salary plus fixed allowances such as housing and transport. This differs from the UAE, where only the basic salary counts.

I resigned before completing two years. Am I owed anything?

No. Under Article 85 no award is due on resignation before two consecutive years of service, except in the Article 87 cases (force majeure, or a female worker ending the contract within six months of marriage or three months of childbirth), where the full award is paid.

What is the difference between termination by the employer and resignation?

On termination by the employer or expiry of the contract the full award is paid under Article 84. On resignation the Article 85 fractions apply: one-third from two to five years, two-thirds if service exceeds five years but is under ten, and the full award at ten years or more.

How are partial years calculated?

Article 84 entitles the worker to a pro-rata award for fractions of a year. This calculator divides months by 12 and days by 365, the convention used by the Ministry of Human Resources and Social Development calculator.

Does the award apply to fixed-term contracts?

Yes. Expiry of a fixed-term contract is a normal end of the employment relationship and the full award is paid under Article 84. If the worker resigns before the term ends, the Article 85 fractions apply.

When must the employer pay the award?

Under Article 88 the employer must settle the worker's entitlements within one week of the end of the relationship if the employer ended it, and within no more than two weeks if the worker ended the contract.

Sources

Under reviewReviewed September 2026

One figure on this page is applied the way the authority applies it; the article's own wording is still being read.

Still being checked: how a part of a year is counted

Statutory articles this calculator applies

Saudi Labor Law, Article 84: end-of-service award
Saudi Labor Law, Article 2: definition of the actual wage
Saudi Labor Law, Article 85: award on resignation
Saudi Labor Law, Article 80: dismissal without award
Saudi Labor Law, Article 81: leaving without notice with full rights
Saudi Labor Law, Article 87: cases keeping the full award
Saudi Labor Law, Article 116: unpaid leave and suspension of the contract

Saudi Labor Law: Royal Decree No. M/51 dated 23/8/1426H (27 Sep 2005), as amended (latest amendment Royal Decree No. M/44 of 1446H, in force 2025-02-19)