Dismissed from your job without a valid reason? Work out your Article 77 compensation under the Saudi Labor Law in seconds: choose your contract type, enter your wage and your length of service or the time left on your contract, and the calculator gives you an estimated compensation amount and shows how it was worked out. Below the calculator is a short explanation of the article and when compensation is due.
This calculator gives an estimate. Whether compensation is due depends on proving that the termination was for an invalid reason, and that is for the court to decide.
How is Article 77 compensation calculated?
| Contract type | Compensation |
|---|---|
| Indefinite (open-ended) | Fifteen days’ wage for each year of service, with part of a year counted in proportion |
| Fixed-term | The wage for the time remaining on the contract |
| In both cases | Compensation cannot be less than two months’ wage |
| If the contract sets a compensation amount | What the two parties agreed applies |
The daily wage used in the calculation is the monthly wage divided by thirty. It is normally based on the actual wage, which includes fixed allowances.
Worked examples
| Case | Compensation |
|---|---|
| Indefinite contract, 10 years, SAR 8,000 | SAR 40,000 (150 days) |
| Indefinite contract, one year, SAR 9,000 | SAR 18,000 (the minimum: two months) |
| Fixed-term contract, 7 months left, SAR 6,000 | SAR 42,000 |
When is compensation due?
It is due if the employer ended the contract for an invalid reason. If the dismissal falls under one of the cases in Article 80 and the correct procedure was followed, or a fixed-term contract simply ran to the end of its term, no compensation is due. You claim it as part of a labor claim within twelve months of the end of the employment. For the full explanation, read Article 77 explained.
Dismissed and want to know all your rights?
Compensation is only one of your rights, alongside the end-of-service award, unpaid wages and leave. The Usus Law Firm team handles labor cases in Riyadh and Tabuk, or you can ask your question free of charge.
This calculator and information are for general awareness under the Saudi Labor Law and are not a substitute for advice from a lawyer on your case.
