How to calculate end-of-service in Saudi Arabia
Last reviewed: 14 June 2026Checked against the official rules.How we verify
The Saudi end-of-service award is set by the Labour Law, Articles 84 and 85. The rate steps up after five years, it is based on your last full wage, and resignation reduces it on a sliding scale. Here is the method, with a worked example.
In short
Your Saudi end-of-service award is half a month's wage for each of your first five years and a full month's wage for each year after, on your last full wage. Resigning scales it down on the Article 85 sliding scale, and there is no cap.
Key facts
- Rate
- Half a month/year for years 1-5, then 1 month/year
- Eligibility
- Pro-rata from day one (on termination)
- Wage basis
- Last full wage (basic + regular allowances)
- Maximum
- No statutory cap
- On resignation
- Scaled by tenure: 0, then 1/3, 2/3, full (Art. 85)
01Step 1 — Use your last full wage
The award is based on your last wage, which under Article 2 means basic pay plus regular allowances and commissions, not basic salary alone, unless your contract excludes variable pay in writing.
02Step 2 — Apply half a month, then a full month
You earn half a month's wage for each of the first five years of service, and one full month's wage for each year beyond five, pro-rated for partial years.
03Step 3 — Apply the resignation scale (Article 85)
If you resign, the award is scaled by total service: nothing under 2 years, one third for 2 to 5 years, two thirds for 5 to 10 years, and the full amount at 10 years or more. Employer termination and contract expiry pay the full award.
04Worked example — 8 years at SAR 6,000, termination
First five years: 0.5 × 6,000 × 5 = SAR 15,000. Next three years: 1 × 6,000 × 3 = SAR 18,000. Total = SAR 33,000. There is no cap.
| Years of service | Award |
|---|---|
| 1 year | SAR 3,000 |
| 3 years | SAR 9,000 |
| 5 years | SAR 15,000 |
| 8 years | SAR 33,000 |
| 10 years | SAR 45,000 |
Enter your wage and dates for your exact figure.
Frequently asked questions
Is the award on basic salary or total wage?
On your last full wage, which includes regular allowances and commissions under Article 2, unless your contract excludes variable pay. Basic-only calculations understate it.
How much do I lose if I resign?
Under Article 85: everything under 2 years, two thirds of the award between 2 and 5 years (you keep one third), one third between 5 and 10 years (you keep two thirds), and nothing at 10 years or more.
Is GOSI part of this?
No. GOSI social insurance is separate from the employer's end-of-service award and is not deducted from it.
Guides for other countries
Based on the Saudi Labour Law, Articles 84 and 85