Saudi end-of-service calculator
Your end-of-service benefit under the Labor Law — accrual, the resignation ladder, and the exceptions, shown line by line.
Saudi Arabia gives you half a month's wage for each of your first five years, then a full month for each year after. If you resign, how much you keep depends on how long you stayed — and a few exceptions can restore the full amount.
How Saudi end-of-service works (Articles 84–85)
Your award accrues on your last wage — in Saudi Arabia that's broader than the UAE's basic-only base, typically including regular allowances. Under Article 84 you earn half a month's wage for each of the first five years, then a full month for each year beyond five, with part-years paid pro-rata.
If you resign, Article 85 scales the award by how long you stayed:
- Under 2 years — nothing.
- 2 to 5 years — one third of the accrued award.
- Over 5 and under 10 years — two thirds.
- 10 years or more — the full award.
At exactly five years the one-third tier still applies — the statute's wording makes that boundary inclusive. The rules guide walks through each tier with examples.
Termination by the employer pays the full accrued award. The exception that removes it is a dismissal for a serious cause under Article 80, which forfeits the benefit — though such cases are often contested.
Worked example. Wage SAR 10,000, eight years, terminated: (5 × half-month) + (3 × full month) = SAR 25,000 + SAR 30,000 = SAR 55,000. The same worker resigning falls in the two-thirds tier: 55,000 × ⅔ = SAR 36,666.67.
Based on Saudi Labor Law (Royal Decree M/51), Articles 84, 85 & 87 — last verified 14 June 2026.
Questions people ask
How is end-of-service calculated in Saudi Arabia?
Half a month's wage for each of your first five years, then a full month's wage for each year beyond five (Article 84), calculated on your last wage. If you resign, a reduction may apply under Article 85.
What happens to my award if I resign?
Under Article 85: nothing below two years; one third of the award between two and five years; two thirds between five and ten; and the full award at ten years or more. Termination by the employer always pays the full accrued award.
Is Saudi end-of-service based on basic salary or full wage?
On your last wage, which in Saudi Arabia is broader than UAE's basic-only base — it generally includes basic pay plus regular allowances. Some contracts compute on basic only, so check yours.
Are there exceptions to the resignation reduction?
Yes (Article 87). A female employee resigning within six months of marriage or three months of childbirth, or someone leaving due to force majeure, receives the full award despite resigning.
Can I lose my award entirely?
Dismissal for a cause listed in Article 80 forfeits the award. These cases are often disputed, so get advice before accepting a zero figure.