End-of-Service Award Calculator

Enter the last monthly wage, the length of service and how the employment ended; the calculator shows the estimated award under the Saudi Labour Law. The result is indicative and does not replace a review of your contract and circumstances.

Calculate the award

Length of service
Estimated award —
Full award (Article 84)
—
Service counted
—
Rule applied
Enter the wage and length of service to see the result.
  • The calculator is for workers covered by the Labour Law; some categories are excluded from it, including domestic workers and the like (Article 7).[1]
  • The award is calculated on the last wage, and “wage” in the Law means the actual wage: the basic wage plus all other due additions (Articles 2 and 84). The parties may agree that commissions, sales percentages and the like are not counted (Article 86).[1]
  • A worker is entitled to an award for part-years in proportion to the time worked (Article 84). The calculator converts months and days into a fraction of a year on the basis of 12 months a year and 30 days a month.[1]
  • The “resignation” option applies Article 85, under which entitlement starts from at least two consecutive years of service. The 2024 amendments defined resignation and set its procedure, so ask a lawyer which rule applies to your contract.[1][3]
  • The full award is due if the worker leaves because of force majeure beyond their control, or a female worker ends the contract within six months of her marriage contract or three months of giving birth (Article 87). A worker who leaves without notice in the cases listed in Article 81 keeps all statutory rights.[1]
  • No end-of-service award is due if the contract is ended during the probation period (Article 54). An employer may terminate without an award, notice or compensation only in the cases listed in Article 80, and only after giving the worker the chance to state their objections.[1]
  • The result does not include other sums you may be owed, such as notice pay and compensation for termination without a valid reason, nor any terms in your contract that are more favourable to the worker.[1]

Questions about the end-of-service award

How is the end-of-service award calculated in Saudi Arabia?

Half a month's wage for each of the first five years and one month's wage for each later year, with the last wage as the basis (Article 84 of the Labour Law).

Example: a last wage of SAR 10,000 and seven and a half years of service = 10,000 × (2.5 + 2.5) = SAR 50,000.[1]

How much is the award on resignation?

One third of the award after at least two consecutive years and not more than five, two thirds after more than five consecutive years and less than ten, and the full award after ten years or more (Article 85).[1]

Is the award calculated on basic salary only?

No. The Law takes the last wage as the basis and defines wage as the actual wage: the basic wage plus all other due additions.

The parties may agree to exclude commissions, sales percentages and the like from the wage on which the award is settled (Article 86).[1]

What if the employer does not pay the award?

The claim starts with an amicable settlement request at the Ministry of Human Resources and Social Development; if no settlement is reached it goes to the labour court, before twelve months have passed since the employment ended.

The employer must settle dues within one week at most of the end of the contract, and within two weeks if the worker ended it (Article 88).[2][1]

Legal sources

  1. Bureau of Experts at the Council of Ministers — Labour Law (in Arabic). https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/08381293-6388-48e2-8ad2-a9a700f2aa94/1
  2. Ministry of Human Resources and Social Development — Amicable settlement of labour disputes (service page) (in Arabic). https://www.hrsd.gov.sa/ar/ministry-services/services/269970
  3. Umm Al-Qura (official gazette) — Amendments to the Labour Law, Royal Decree M/44 of 8/2/1446 AH (in Arabic). https://www.uqn.gov.sa/details?p=25379

This page is general information about Saudi law, not legal advice, and makes no promise of any outcome. Laws and regulations change; consult a lawyer before you act.

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