Saudi Arabia Gratuity Calculator with Partial Years and Unpaid Leave

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

Unpaid leave days

Unpaid leave beyond 20 days suspends the contract (Article 116); enter the total days and they are deducted from service.

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

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

See how much unpaid leave takes off your service, and off your gratuity.

Calculate your Saudi end-of-service award when your service includes incomplete months and days or unpaid leave, under Articles 84 and 116 of the Labor Law.

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Cites the article

How does unpaid leave affect the gratuity?

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

How much does 60 unpaid days cost?

An employee whose last monthly wage is 10,000 SAR is terminated by the employer after 5 years, 6 months and 10 days of service.

First five years: 5 × 0.5 × 10,000 = 25,000 SAR
Fraction of the sixth year: (6 ÷ 12 + 10 ÷ 365) = 0.5274 of a year × 10,000 = 5,273.97 SAR
Total award: 25,000 + 5,273.97 = 30,273.97 SAR

Another employee on the same wage served 7 years but took 60 days (two months) of unpaid leave: his service counts as 6 years and 10 months, so he is owed 25,000 + (1 + 10 ÷ 12) × 10,000 = 43,333.33 SAR instead of 45,000 SAR.

What counts towards service, and what is excluded?

Article 84 of the Labor Law entitles the worker to an award for fractions of a year in proportion to the time worked, on top of half a month's wage for each of the first five years and a full month's wage for each year after that, calculated on the last wage. This calculator divides months by 12 and days by 365, the method used by the Ministry of Human Resources and Social Development calculator.

Unpaid leave is governed by Article 116: with the employer's consent the worker may take leave without pay for a period the two parties agree on, and the contract is deemed suspended for the part of that leave exceeding twenty days unless the parties agree otherwise. Unpaid leave days are deducted from the service period before the formula is applied, so 7 years of service with 60 unpaid days is calculated as 6 years and 10 months.

Because the law suspends the contract without spelling out how the period is deducted from the award, practice can differ for long unpaid leave or where the contract makes its own arrangement, so confirm the accepted method with the Ministry of Human Resources and Social Development before relying on the figure. Once the total is calculated, the Article 85 resignation fractions apply if the employment ended by resignation.

Fractions of a year: months ÷ 12 and days ÷ 365, multiplied by half the wage or the full wage depending on the year
Unpaid leave days are deducted from the service period before the calculation (Article 116)
Annual leave, public holidays and statutory sick leave remain part of the service period
No minimum service when the employer ends the contract, and no award on resignation before two years (Article 85)

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 and unpaid leave, 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 about unpaid leave and service

How is a fraction of a year calculated in the end-of-service award?

Article 84 grants an award for fractions of a year in proportion to the time the worker spent in service. The calculator divides months by 12 and days by 365 as the Ministry calculator does, so six months count as 0.5 of a year and 10 days as 0.0274 of a year, and the result is multiplied by half the wage or the full wage depending on which year it falls in.

Does unpaid leave count as service?

Under Article 116 the contract is deemed suspended for the part of unpaid leave exceeding twenty days unless agreed otherwise, so unpaid leave days are deducted from the service period before the calculation. Because practice can differ for long unpaid leave, confirm the accepted method with the Ministry.

How do I enter unpaid leave in the calculator?

Enter the total unpaid days in the “Unpaid leave days” field and the calculator deducts them from your service automatically, treating a month as 30 days when you enter a duration: 7 years with 60 unpaid days count as 6 years and 10 months. If the leave was 20 days or less, the contract is not suspended under Article 116, so enter 0.

Is annual leave or sick leave deducted from the service period?

No. Paid annual leave under Article 109, public holidays and statutory sick leave under Article 117 are part of the service period and are not deducted; only days of leave without pay are subtracted.

Can a fraction of a year change the resignation fraction?

It can. The Article 85 thresholds (two, five and ten years) are measured by actual service, so a worker who resigns after 5 years and 10 days receives two-thirds because service exceeded five years, while a worker who resigns at exactly 5 years receives one-third. Subtracting unpaid leave can also push the period below one of these thresholds.

I served only 11 months and my contract was terminated. Am I owed an award?

Yes. Article 84 sets no minimum service when the employer ends the contract or the contract expires, so the award is 11 ÷ 12 of half a month's wage, which is 4,583.33 SAR on a 10,000 SAR wage. On resignation, however, nothing is due before two years under Article 85.

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)