{"id":7265,"date":"2026-10-06T15:55:12","date_gmt":"2026-10-06T12:55:12","guid":{"rendered":"https:\/\/ususlawfirm.com\/article-84-saudi-labor-law\/"},"modified":"2026-10-11T15:12:01","modified_gmt":"2026-10-11T12:12:01","slug":"article-84-saudi-labor-law","status":"publish","type":"post","link":"https:\/\/ususlawfirm.com\/en\/article-84-saudi-labor-law\/","title":{"rendered":"Article 84 of the Saudi Labour Law: End-of-Service Award and Housing"},"content":{"rendered":"<style>.usus-tbl{border-collapse:collapse;width:100%;max-width:760px;margin:12px 0 20px;font-size:15px}.usus-tbl th{background:#f4eff9;color:#2A124A;font-weight:700;text-align:right;padding:9px 12px;border-bottom:2px solid #C9A227}.usus-tbl td{padding:9px 12px;border-bottom:1px solid #e5ddec;vertical-align:top}<\/style>\n<div dir=\"ltr\" style=\"text-align: left;\">\n<p><strong>Article 84 of the Saudi Labour Law<\/strong> (\u0646\u0638\u0627\u0645 \u0627\u0644\u0639\u0645\u0644) is the basis of a worker&#8217;s right to an <strong>end-of-service award<\/strong> (often called end-of-service benefit or gratuity): it sets how the award is calculated, on which wage, and when it is due. It is one of the most searched articles of the law, because every employment relationship ends one day. Below we explain the article in plain language, show how the award is calculated with examples, list the articles that reduce or cancel it, and answer the housing allowance question.<\/p>\n<h2>What does Article 84 say?<\/h2>\n<p>When the employment relationship ends, the employer must pay the worker an award for the period of service, calculated as follows:<\/p>\n<ul>\n<li><strong>Half a month&#8217;s wage<\/strong> for each of the <strong>first five years<\/strong>.<\/li>\n<li><strong>A full month&#8217;s wage<\/strong> for each of the <strong>following years<\/strong>.<\/li>\n<li>The <strong>last wage<\/strong> is the basis of the calculation, and the worker is entitled to an award for <strong>parts of a year<\/strong> in proportion to the time worked.<\/li>\n<\/ul>\n<h2>Worked examples<\/h2>\n<table class=\"usus-tbl\">\n<thead>\n<tr>\n<th>Length of service<\/th>\n<th>Last wage<\/th>\n<th>Calculation<\/th>\n<th>Award<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>3 years<\/td>\n<td>SAR 6,000<\/td>\n<td>half a month \u00d7 3 = 1.5 months<\/td>\n<td>SAR 9,000<\/td>\n<\/tr>\n<tr>\n<td>5 years<\/td>\n<td>SAR 8,000<\/td>\n<td>half a month \u00d7 5 = 2.5 months<\/td>\n<td>SAR 20,000<\/td>\n<\/tr>\n<tr>\n<td>8 years<\/td>\n<td>SAR 8,000<\/td>\n<td>2.5 months + (one month \u00d7 3) = 5.5 months<\/td>\n<td>SAR 44,000<\/td>\n<\/tr>\n<tr>\n<td>4 years and 6 months<\/td>\n<td>SAR 10,000<\/td>\n<td>half a month \u00d7 4.5 = 2.25 months<\/td>\n<td>SAR 22,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<figure class=\"usus-ig usus-ig-7265-1\"><img class=\"wp-image-7953\" src=\"https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1.webp\" width=\"1200\" height=\"840\" alt=\"Worked examples \u2014 Article 84 of the Saudi Labour Law (Usus Law Firm infographic)\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1.webp 1200w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1-768x538.webp 768w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1-640x448.webp 640w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1-400x280.webp 400w, https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/10\/usus-7265-1-367x257.webp 367w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<p>This is the full award, paid when the contract expires or when the employer ends it. Work out your own case with the <a href=\"https:\/\/ususlawfirm.com\/en\/end-of-service-calculator-saudi-arabia\/\">end-of-service calculator<\/a>.<\/p>\n<h2>When is the award reduced or lost?<\/h2>\n<table class=\"usus-tbl\">\n<thead>\n<tr>\n<th>Situation<\/th>\n<th>Effect<\/th>\n<th>Article<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Resignation<\/td>\n<td>One third, two thirds or the full award depending on length of service, and nothing before two years<\/td>\n<td>Article 85<\/td>\n<\/tr>\n<tr>\n<td>Dismissal for a legitimate reason in one of the listed cases<\/td>\n<td>The right to the award may be lost<\/td>\n<td><a href=\"https:\/\/ususlawfirm.com\/en\/article-80-saudi-labor-law\/\">Article 80<\/a><\/td>\n<\/tr>\n<tr>\n<td>Leaving work because the employer breached its obligations<\/td>\n<td>Full award<\/td>\n<td><a href=\"https:\/\/ususlawfirm.com\/en\/article-81-saudi-labor-law\/\">Article 81<\/a><\/td>\n<\/tr>\n<tr>\n<td>Leaving work due to force majeure, or a female worker ending the contract within six months of her marriage or three months of giving birth<\/td>\n<td>Full award<\/td>\n<td>Article 87<\/td>\n<\/tr>\n<tr>\n<td>Termination during the probation period<\/td>\n<td>No award<\/td>\n<td><a href=\"https:\/\/ususlawfirm.com\/en\/probation-period-saudi-labor-law\/\">Probation period<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>Which wage is used? Is the housing allowance included?<\/h2>\n<p>The article says the &#8220;last wage&#8221; is the basis of the calculation. In practice the general rule is to calculate on the <strong>actual wage<\/strong> the worker was receiving, meaning the basic wage plus fixed allowances that were due, such as housing and transport allowances, not the basic wage alone. Occasional allowances, or allowances tied to particular circumstances, are treated differently, and details can vary with the contract. That is why many disputes are about what counts as part of the wage.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>When must the award be paid?<\/h3>\n<p>The employer must settle the worker&#8217;s dues within the period set by law from the date the relationship ends, and a delay opens the door to a claim for compensation. Check the current official text.<\/p>\n<h3>Is the award different for an expatriate worker?<\/h3>\n<p>No. Article 84 applies to private-sector workers, Saudi and non-Saudi alike.<\/p>\n<h3>My employer refuses to pay. What can I do?<\/h3>\n<p>Start with a complaint and amicable settlement, then the labour court, and watch the time limit for hearing the claim. Proceedings are in Arabic, so contracts and payslips in English may need an Arabic translation. Read <a href=\"https:\/\/ususlawfirm.com\/en\/labor-case-saudi-arabia-labor-court\/\">filing a labour claim<\/a>.<\/p>\n<h2>A dispute over your end-of-service award?<\/h2>\n<p>The team at <strong>Usus Law Firm<\/strong> handles <a href=\"https:\/\/ususlawfirm.com\/en\/service\/labor-cases\/\">labour cases<\/a>, calculating dues and claiming them, in <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-riyadh\/\">Riyadh<\/a> and <a href=\"https:\/\/ususlawfirm.com\/en\/lawyer-in-tabuk\/\">Tabuk<\/a>, and advises in English. See also the <a href=\"https:\/\/ususlawfirm.com\/en\/saudi-labor-law-implementing-regulations\/\">Implementing Regulations of the Labour Law<\/a>.<\/p>\n<p style=\"font-size:12.5px;color:#6a6178;border-top:1px solid #e6ddd0;padding-top:10px;margin-top:16px\"><em>This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.<\/em><\/p>\n<div class=\"usus-qbox\">\n<h2>Request a quick consultation<\/h2>\n<p>Leave your name and mobile number, and a lawyer from our Riyadh or Tabuk office will call you during working hours. We advise in English.<\/p>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f6963-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"6963\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/7265#wpcf7-f6963-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"6963\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.2\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f6963-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<span id=\"wpcf7-6acbc381762df-wrapper\" class=\"wpcf7-form-control-wrap cf7apps-honeypot-wrap honeypot-qf-wrap\" style=\"position:absolute;width:1px;height:1px;padding:0;margin:-1px;overflow:hidden;clip:rect(0,0,0,0);white-space:nowrap;border:0;\"><label for=\"wpcf7-6acbc381762df-field\" class=\"hp-message\">Please leave this field empty.<\/label><input id=\"wpcf7-6acbc381762df-field\"  class=\"wpcf7-form-control wpcf7-text\" type=\"text\" name=\"honeypot-qf\" value=\"\" autocomplete=\"new-password\" tabindex=\"1000\" data-cf7apps-tabindex=\"1000\" \/><\/span>\n<div class=\"usus-qf\">\n<div class=\"f\"><label for=\"q-name\">Name<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" id=\"q-name\" autocomplete=\"name\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Your name\" value=\"\" type=\"text\" name=\"q-name\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-phone\">Mobile<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel\" id=\"q-phone\" autocomplete=\"tel\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"05xxxxxxxx\" value=\"\" type=\"tel\" name=\"q-phone\" \/><\/span><\/div>\n<div class=\"f\"><label for=\"q-city\">City<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-city\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required\" id=\"q-city\" aria-required=\"true\" aria-invalid=\"false\" name=\"q-city\"><option value=\"Riyadh\">Riyadh<\/option><option value=\"Tabuk\">Tabuk<\/option><option value=\"Other city\">Other city<\/option><\/select><\/span><\/div>\n<div class=\"f w\"><label for=\"q-msg\">Your case in brief (optional)<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"q-msg\"><textarea cols=\"40\" rows=\"2\" maxlength=\"600\" class=\"wpcf7-form-control wpcf7-textarea\" id=\"q-msg\" aria-invalid=\"false\" placeholder=\"One or two lines are enough\" name=\"q-msg\"><\/textarea><\/span><\/div>\n<div class=\"s\"><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Request a call from a lawyer\" \/><\/div>\n<\/div><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Article 84 of the Saudi Labour Law (\u0646\u0638\u0627\u0645 \u0627\u0644\u0639\u0645\u0644) is the basis of a worker&#8217;s right to an end-of-service award (often called end-of-service benefit or gratuity): it sets how the award is calculated, on which wage, and when it is due. It is one of the most searched articles of the law, because every employment [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7292,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85,81],"tags":[],"class_list":["post-7265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-labor-law","category-saudi-laws-explained"],"acf":[],"featured_image_src":{"landsacpe":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-1140x445.jpg?wsr",1140,445,true],"list":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-463x348.jpg?wsr",463,348,true],"medium":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk-300x300.jpg?wsr",300,300,true],"full":["https:\/\/ususlawfirm.com\/wp-content\/uploads\/2026\/01\/labor-lawyer-riyadh-tabuk.jpg?wsr",1200,1200,false]},"_links":{"self":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/7265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/comments?post=7265"}],"version-history":[{"count":1,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/7265\/revisions"}],"predecessor-version":[{"id":7954,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/posts\/7265\/revisions\/7954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media\/7292"}],"wp:attachment":[{"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/media?parent=7265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/categories?post=7265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ususlawfirm.com\/en\/wp-json\/wp\/v2\/tags?post=7265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}