Saudi End of Service Award Calculator Widget
Work out the end-of-service award (مكافأة نهاية الخدمة) a private-sector worker in Saudi Arabia is owed: the Article 84 formula on the last actual wage, the one-third and two-thirds cuts that apply on resignation, the full award Article 87 keeps for some resignations, and the date it must be paid by.
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How it works
Article 84 of the Saudi Labor Law gives half a month's wage for each of the first five years of service and a full month's wage for every year after that, with parts of a year paid in proportion. The wage is the last actual wage - basic pay plus housing, transport and the other regular allowances defined in Article 2 - not the basic wage alone. When the worker resigns, Article 85 scales the award: nothing below two years, one third from two to five years (exactly five years is still one third), two thirds above five and under ten, and the whole award from ten years. Article 87 restores the full award for force majeure and for a woman who leaves within six months of marriage or three months of childbirth; a dismissal under Article 80 carries none. Service is counted anniversary by anniversary in the Gregorian calendar that the unified employment contract uses, or in the Umm al-Qura Hijri calendar for contracts that keep the Law's Hijri default, and unpaid leave beyond twenty days a year can be taken out. The 2025 amendments did not change Articles 84 to 88.
Calculation method
- Service = full years by anniversary + remaining days / days to the next anniversary (Gregorian or Hijri)
- Award months = 0.5 x min(years, 5) + 1 x max(years - 5, 0)
- Award = last actual monthly wage x award months, rounded once to the halala
- Resignation: < 2 years x 0; 2-5 years x 1/3; > 5 and < 10 years x 2/3; 10+ years x 1
- Due within 7 days of the contract ending, 14 days when the worker ended it (Art. 88)
Worked examples
Terminated after seven years
Inputs: Last wage SAR 10,000; 7 years; ended by the employer
Result: SAR 45,000
5 x 0.5 + 2 x 1 = 4.5 months x 10,000.
Resigned after seven years
Inputs: Same, resignation
Result: SAR 30,000
Over 5 and under 10 years: two thirds of 45,000.
Resigned at exactly five years
Inputs: Last wage SAR 10,000; 5.0 years; resignation
Result: SAR 8,333.33
2.5 months = 25,000; five years is still in the one-third band.
A calculation aid, not legal advice. The Labor Law, the contract and, in a dispute, the labour courts decide the award.
Limitations
- For private-sector workers under the Saudi Labor Law - not civil servants, domestic workers or flexible-work contracts, which carry no award.
- Whether a contract ended by resignation, Article 80 or Article 81 is a legal question the widget does not decide.
- Settlement agreements and contractual awards above the statutory minimum are not modelled.
Where publishers use it
- A Riyadh HR consultancy's page on exit entitlements for private-sector staff
- An expatriate community site answering 'how much will I get if I resign after six years?'
- A payroll provider's help centre showing the Article 85 fractions with a live example
- An Arabic legal blog explaining مكافأة نهاية الخدمة after the 2025 Labor Law amendments
Questions
How is end of service 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 part years pro rata, on the last actual wage including allowances (Labor Law Article 84). Seven years on SAR 10,000 is 2.5 + 2 = 4.5 months, SAR 45,000.
How much do I get if I resign?
Article 85: nothing under two years of continuous service, one third of the award from two to five years, two thirds over five and under ten years, and the full award at ten years or more. The same seven years on SAR 10,000 gives SAR 30,000 on resignation.
Is the award calculated on basic salary or total salary?
On the actual wage: basic pay plus the allowances and other due increments listed in Article 2, such as housing and transport. Commissions and sales percentages may be left out only if the contract says so (Article 86).
When does a resigning worker still get the full award?
Under Article 87: when the worker leaves because of force majeure, or when a female worker ends her contract within six months of her marriage contract or three months of giving birth.
Did the 2025 Labor Law amendments change end of service?
No. Royal Decree M/44, in force from 19 February 2025, amended notice, resignation procedure and overtime, but left Articles 84 to 88 on the end-of-service award unchanged.
Rules and official sources
Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for Saudi Arabia; when a rule changes, the widget changes with it.
| Rule | Official source | In force from | Last verified | Next review |
|---|---|---|---|---|
| End-of-service award rate Half a month's wage for each of the first five years and one month's wage for each later year, pro rata for parts of a year, on the LAST ACTUAL wage (basic plus allowances and other due increments, Art. 2). Commissions and sales percentages may be excluded by agreement (Art. 86). The 2025 amendment (M/44) did not change Arts. 84-88. |
Labor Law (consolidated), Part Five Ministry of Human Resources and Social Development - Arts. 84 and 2 (wage = actual wage); Art. 86 |
Not stated on the source | 7 Oct 2026 | 5 Apr 2027 |
| End-of-service award on resignation Resignation: under 2 years nothing; 2 to 5 years (5.0 included) one third; over 5 and under 10 years two thirds; 10 years or more the full award. Full award despite resignation for force majeure, or a woman leaving within 6 months of marriage or 3 months of childbirth (Art. 87). No award in the Art. 80 dismissal cases. |
Labor Law (consolidated), Part Five Ministry of Human Resources and Social Development - Arts. 85, 87 and 80 |
Not stated on the source | 7 Oct 2026 | 5 Apr 2027 |
| Unpaid leave and length of service Up to 20 intermittent days of unpaid absence a work year still count as service; beyond that the contract is suspended unless agreed otherwise. |
Labor Law (consolidated), Parts One and Six Ministry of Human Resources and Social Development - Art. 2 (continuous service); Art. 116 |
Not stated on the source | 7 Oct 2026 | 5 Apr 2027 |
| Calendar for Labor Law periods Art. 10: periods are counted in the Hijri calendar unless the contract or work regulations say otherwise. The unified contract forms adopted by the 2025 Implementing Regulations select the Gregorian calendar. Widgets default to Gregorian and offer Hijri for contracts that specify it. |
Labor Law Art. 10 and Implementing Regulations Art. 18, Annex 5 (unified contract cl. 14.6) Ministry of Human Resources and Social Development - Art. 10; IR Art. 18; Annex 5 cl. 14.6 |
19 Feb 2025 | 7 Oct 2026 | 5 Apr 2027 |
| Deadline to pay end-of-service dues Within one week of the end of the contract; within two weeks if the worker ended it. The employer may set off work-related debts. |
Labor Law (consolidated), Part Five Ministry of Human Resources and Social Development - Art. 88 |
Not stated on the source | 7 Oct 2026 | 5 Apr 2027 |
| Umm al-Qura calendar Saudi Arabia's official civil calendar, published by KACST. Widgets convert with the browser's built-in Umm al-Qura calendar (CLDR tables), checked against published dates (1 Muharram 1446 = 7 July 2024; 1 Ramadan 1445 = 11 March 2024). Month starts can differ from the moon sighting announced for Ramadan and the Eids. |
Official Umm al-Qura calendar: annual reference and date converter Umm al-Qura Calendar (KACST) - Annual reference of month starts |
Not stated on the source | 7 Oct 2026 | 8 Oct 2027 |
Sources
- Labor Law (consolidated), Part Five - Ministry of Human Resources and Social Development . Arts. 84 and 2 (wage = actual wage); Art. 86. Verified 2026-10-07.
- Labor Law (consolidated), Parts One and Six - Ministry of Human Resources and Social Development . Art. 2 (continuous service); Art. 116. Verified 2026-10-07.
- Official Umm al-Qura calendar: annual reference and date converter - Umm al-Qura Calendar (KACST) . Annual reference of month starts. Verified 2026-10-07.
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A2Z Tools Saudi End of Service Award Calculator https://a2z.tools/embed/saudi-end-of-service-calculator
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