Work out your end-of-service award in seconds: enter your last salary, your length of service and why the employment ended, and this end of service calculator gives you an estimated amount under Articles 84 and 85 of the Saudi Labor Law. Below the calculator you will find how the end of service award is calculated, with worked examples.
This calculator gives an estimate under the Saudi Labor Law. Special cases can differ. To be sure, contact the Usus Law Firm team.
How is the end-of-service award calculated in Saudi Arabia?
The end of service calculator above works out the award under Article 84 of the Saudi Labor Law: half a month’s wage for each of the first five years, and a full month’s wage for each year after that. Part of a year counts in proportion, so six months count as half a year.
The formula in short:
- If you served 5 years or less: award = salary × years ÷ 2.
- If you served more than 5 years: award = (salary × 2.5) + (salary × years beyond five).
Which salary is the award based on?
It is based on the last wage the employee was paid. In practice the calculation normally uses the actual wage: basic salary plus fixed allowances such as housing and transport. The calculation can differ if the contract says otherwise, or if part of your income is a variable commission. So enter the wage shown on your last payslip, and speak to a lawyer if your pay varies.
The award on resignation (Article 85)
If the employment ended because the employee resigned, part of the award is paid depending on length of service:
| Length of service | Share of the award on resignation |
|---|---|
| Less than two years | No award |
| Two years to less than five years | One third of the award |
| Five years to less than ten years | Two thirds of the award |
| Ten years or more | The full award |
When does an employee who leaves get the full award? (Article 87)
An employee is entitled to the full award even when they leave the job themselves in cases set out in Article 87, including: leaving because of force majeure beyond their control, and a female employee who ends her contract within six months of her marriage contract or within three months of giving birth. And if the employee leaves for one of the reasons in Article 81 (such as the employer breaching its essential obligations), they are not treated as having resigned.
The calculation follows Article 84 of the Saudi Labour Law: half a month’s wage for each of the first five years and a full month’s wage for each year after that, based on the last wage. For how the award is reduced on resignation, see Article 85 above and resignation and ending employment.
Worked examples
| Case | Salary | Service | Award |
|---|---|---|---|
| End of contract or dismissal | SAR 6,000 | 3 years | SAR 9,000 |
| Resignation | SAR 6,000 | 3 years | SAR 3,000 (one third) |
| End of contract or dismissal | SAR 8,000 | 6 years | SAR 28,000 |
| Resignation | SAR 8,000 | 6 years | SAR 18,667 (two thirds) |
| End of contract or resignation | SAR 10,000 | 12 years | SAR 95,000 (full) |
| Resignation | SAR 7,000 | One and a half years | No award |
The six-year example: the first five years are 5 × 4,000 = 20,000, and the sixth year is 8,000, so the total is SAR 28,000.
When is the award not due?
If the contract is terminated because of one of the violations listed in Article 80 of the Labor Law (such as assault, or continuous absence without an excuse after a warning), the employee may lose the award. This loss is often disputed, because the employer has to prove the reason and follow the legal procedure.
When must the award be paid?
Article 88 requires the employer to pay the employee’s wage and all their dues within one week at most of the end of the employment if the employer ended it, and within two weeks if the employee ended the contract. If payment is late, you can file a labor complaint to claim what you are owed.
Frequently asked questions about the end-of-service award
Is the award different for Saudis and expatriates?
No. Articles 84 and 85 apply to every employee covered by the Labor Law, Saudi or expatriate.
Is unused leave included in the award?
No. Your annual leave balance is a separate right that you claim alongside the award, and it is not deducted from it.
Is compensation for unlawful dismissal the same as the end-of-service award?
No. Compensation for ending the contract without a valid reason (Article 77) is claimed in addition to the award, and it is calculated differently.
The calculator gave me a different figure from my company’s. What should I do?
Ask your employer for a written breakdown of how they calculated it and which wage they used. The difference usually comes from the wage used, the start date of service, or how the end of the employment was classified. If the disagreement is not settled amicably, it is a labor dispute that you can take further.
Is there a dispute over what you are owed?
If your employer refuses to pay your award or part of your dues, the Usus Law Firm team handles labor cases from the complaint to the labor court. Also read our guide to the Saudi Labor Law, or contact our Riyadh office or Tabuk office. Book your consultation: 0530349349.
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.
Read also: Article 77 explained.
Read also: Article 80 explained.
Read also: Article 77 compensation calculator.
