Saudi end of service calculator

How it is calculated

• Wage used: Last actual wage: basic plus allowances.
• Formula: Half a month’s wage for each of years 1–5, then one month’s wage for each year after 5.
• Minimum service: none when the employer ends the contract.
• If you resign: 0–2 yrs: 0 · 2–5 yrs: ⅓ · 5–10 yrs: ⅔ · 10+ yrs: full.
• On resignation: nothing under 2 years, one third from 2 years up to and including 5, two thirds above 5 and under 10, the full award from 10 years.
• The full award is paid despite resignation for force majeure, or for a woman who ends her contract within 6 months of marriage or 3 months of giving birth (Article 87), or when leaving under Article 81.
• Commissions may be excluded if your contract says so (Article 86). Saudis and expatriates are both entitled; GOSI does not replace it.

Worked example

An employee on SAR 10,000.00 a month worked from 1 January 2019 to 31 March 2026 (7 years 3 months) and the employer ended the contract:

End of Service by years of service: terminated vs resigned

On a wage of SAR 10,000.00 a month, this is the award under Articles 84 and 85 after each length of service, if the employer ends the contract and if you resign:

What to know in Saudi

Saudi end-of-service benefit under Article 84 is half a month's wage for each of the first five years and a full month for each year after, on your last actual wage: basic plus allowances. Commissions can be excluded if your contract says so (Article 86). Saudis and expatriates are both entitled, and GOSI contributions do not replace the award.

Resigning changes the amount under Article 85: nothing under two years, one third from two years up to and including five, two thirds above five and under ten, and the full award from ten years. The calculator measures those thresholds on the calendar, so resigning on your fifth anniversary keeps one third. The full award is paid despite resignation in the Article 87 and Article 81 cases.

Dismissal under one of the Article 80 grounds removes the award, while an ordinary termination does not. If a fixed-term contract is ended early without a valid reason, Article 77 compensation is a separate claim; whether it is paid on top of the award is best confirmed with HRSD or the labour court. The wage registered with GOSI can differ from your contract, so check which figure your settlement uses.

Common questions