Saudi Arabia Gratuity Calculator for Resignation
- Saudi Labor Law, Article 84: end-of-service award
- Reviewed September 2026one rule still being checked
Saudi Labor Law, Article 84: end-of-service award
Next step
To check this, or for anything official:
The end-of-service calculator of the Ministry of Human Resources and Social Developmenthrsd.gov.sa
See what you keep if you resign, and what it costs against being let go.
Find out your share of the end-of-service award on resignation under Article 85 of the Saudi Labor Law: one-third, two-thirds or the full award depending on your length of service.
- Runs in your browser
- No sign-up
- Nothing leaves your device
- Cites the article
How is gratuity calculated on resignation?
- Monthly wage = basic + fixed allowances
- first 5 years: half a month of wage per year · after 5 years: one month of wage per year
- Gratuity = the 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 possibly reduced on resignation depending on the country
What is the gratuity on resignation at 10,000?
An employee whose last monthly wage is 10,000 SAR hands in his resignation. Here is his share under Article 85 at different lengths of service.
- After 3 years: total 3 × 5,000 = 15,000 SAR, one-third due = 5,000 SAR
- After exactly 5 years: total 5 × 5,000 = 25,000 SAR, one-third due = 8,333.33 SAR because service did not exceed five years
- After 7 years: total 25,000 + 2 × 10,000 = 45,000 SAR, two-thirds due = 30,000 SAR
- After 12 years: total 25,000 + 7 × 10,000 = 95,000 SAR, full award = 95,000 SAR
Had the employer ended the contract in any of these cases, the full award would be paid under Article 84: 45,000 SAR after 7 years instead of 30,000 SAR. That is why the timing of a resignation matters for anyone close to completing the fifth or the tenth year.
Why does resigning change the amount?
The end-of-service award is first calculated under Article 84 on the last wage (basic salary plus fixed allowances): 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 pro rata. The entitlement fraction for resignation is then applied to that total.
Article 85 sets the fraction by length of continuous service: no award if the worker resigns before completing two years, one-third if service has reached two years and does not exceed five, two-thirds if it exceeds five years but is under ten, and the full award at ten years or more. A worker who resigns at exactly five years therefore receives one-third, not two-thirds.
By exception, Article 87 grants the full award when the worker leaves because of force majeure beyond his control, and to a female worker who ends the contract within six months of marriage or within three months of childbirth. A worker who leaves without notice for one of the reasons in Article 81, such as the employer failing to meet its essential obligations, assaulting the worker or exposing him to serious danger at work, also keeps all rights in full.
- Under two years: no award on resignation
- Two to five years (including exactly five): one-third of the award
- More than five years and under ten: two-thirds of the award
- Ten years or more, or the Article 81 and Article 87 cases: the full award
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 | Gratuity on resignation, 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 |
Questions people thinking of resigning ask
I resigned before completing two years. Am I owed an award?
No. Under Article 85 no award is due on resignation before two consecutive years of service, unless one of the Article 87 cases applies (force majeure, or a female worker ending the contract within six months of marriage or three months of childbirth), in which case the full award is paid.
I completed exactly five years and then resigned. Do I get one-third or two-thirds?
One-third. Article 85 grants one-third to a worker whose service does not exceed five years, and two-thirds only begins once service exceeds five years. On a 10,000 SAR wage that means 8,333.33 SAR instead of 16,666.67 SAR.
Do allowances count in the award of a resigning worker?
Yes. The award is calculated on the last actual wage, meaning the basic salary plus fixed allowances such as housing and transport, and the Article 85 fraction is then applied to it. Enter your allowances in the dedicated field so they are included.
I resigned because of marriage or childbirth. Is the award reduced?
No. Article 87 grants a female worker the full award if she ends the contract within six months of the date of the marriage contract or within three months of the date of childbirth, without applying the Article 85 fractions. Select the matching special case in the calculator.
What is the difference between resignation and leaving under Article 81?
Resignation is the worker's own decision and is subject to the Article 85 fractions, whereas leaving under Article 81 is termination without notice because of the employer's breach, such as failing to meet essential obligations, fraud at the time of contracting, assault or a serious danger to safety, and the worker keeps all rights in full, including the full award.
When is the award paid to a resigning worker?
Under Article 88 the employer must settle the worker's entitlements within no more than two weeks of the end of the relationship if the worker ended the contract, and within one week if the employer ended it.
Sources
Under reviewReviewed September 2026One 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
- Labor Law: Royal Decree No. M/51 dated 23/8/1426H (Bureau of Experts at the Council of Ministers)
- Labor Law, consolidated text (PDF, Arabic): Ministry of Human Resources and Social Development
- End-of-service benefit calculator: Ministry of Human Resources and Social Development
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)