Saudi End of Service Calculator (EOSB)
Saudi End of Service Calculator (EOSB)
The end-of-service award under the Saudi Labor Law: half a month’s wage for each of the first five years, a full month for each year after, and the reduced share if you resign.
Saudi end-of-service award
Last wage SAR 10,000 a month, 7 years and 4 months, contract ended by the employer
The award under Articles 84 and 85
- W
- the last monthly wage
- S
- years of service, part years in proportion
- R
- 1 unless you resigned: then 0 under 2 years, 1/3 from 2 to 5 years, 2/3 over 5 and under 10, 1 from 10
Worked example
Last wage SAR 10,000 a month, 7 years and 4 months, contract ended by the employer
Service: 7 + 4 ÷ 12 = 7.3333 years
First five years: ½ × 5 = 2.5 months' wage; the rest: 2.3333 months' wage
Award = 10,000 × 4.8333 = SAR 48,333
Had you resigned, after more than five and under ten years: two thirds, SAR 32,222
Award on a wage of 10,000 a month
| Years | Employer ends or contract expires | You resign | Share on resignation |
|---|---|---|---|
| 1 | $5,000 | $0 | none |
| 2 | $10,000 | $3,333 | 1/3 |
| 3 | $15,000 | $5,000 | 1/3 |
| 5 | $25,000 | $8,333 | 1/3 |
| 6 | $35,000 | $23,333 | 2/3 |
| 9 | $65,000 | $43,333 | 2/3 |
| 10 | $75,000 | $75,000 | full |
| 15 | $1,25,000 | $1,25,000 | full |
| 20 | $1,75,000 | $1,75,000 | full |
How the Saudi end-of-service award works
Under the Saudi Labor Law, a worker whose employment ends is owed an end-of-service award. Article 84 sets it at half a month’s wage for each of the first five years of service and a full month’s wage for each year after that, calculated on the last wage and with part years counted in proportion. There is no cap. On the example, 7 years and 4 months at SAR 10,000 earns 2.5 + 2.33 months’ wage: SAR 48,333.
Resignation. Article 85 reduces the award when the worker resigns: nothing below two years’ service, one third after two years and up to five, two thirds after more than five and less than ten, and the full award from ten years. The boundary at five years is easy to get wrong: exactly five years is still one third. Article 87 restores the full award if the worker leaves because of force majeure, or if a woman ends her contract within six months of marrying or three months of giving birth. A worker who leaves because the employer broke the contract keeps full rights; one dismissed for serious misconduct under Article 80 may lose the award.
What changed in 2025. Amendments to the Labor Law approved in August 2024 took effect on 19 February 2025. They lengthened probation to up to 180 days, set new notice periods, extended maternity leave and set a formal resignation procedure through Qiwa, with employer acceptance within 30 days. We found no change to the award formula or to the resignation fractions.
Conventions. The wage is the last actual wage, basic pay plus allowances such as housing and transport; commission and other variable pay can follow their own rules. Part years are counted as months ÷ 12. The award is paid in the currency you choose; for Saudi Arabia choose SAR. For the UAE use the UAE gratuity calculator, and for India the India gratuity calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is end of service calculated in Saudi Arabia?
Half a month’s last wage for each of the first five years and a full month’s wage for each year after, part years in proportion. 7 years 4 months at SAR 10,000 gives SAR 48,333.
How much end of service do I get if I resign?
Nothing under two years, one third for two to five years, two thirds for more than five and under ten, and the full award after ten years (Article 85).
Did the 2025 Labor Law amendments change end of service?
Not as far as we could find. The amendments in force from 19 February 2025 changed probation, notice, leave and the resignation procedure, but not the award formula or the resignation fractions.
Is housing allowance included in the end-of-service wage?
The award is based on the actual wage, which is basic pay plus the allowances paid with it, such as housing and transport. Commission and other variable pay can be treated differently; check your contract and the Ministry’s guidance.
Related calculators
References
- Kingdom of Saudi Arabia. Labor Law, Royal Decree No. M/51 (2005), Article 84 (end-of-service award), Article 85 (resignation), Article 87 (full award exceptions), Article 80 (dismissal without award).
- Ministry of Human Resources and Social Development. End-of-Service Award Regulations. https://www.hrsd.gov.sa/en/knowledge-centre/articles/317
- Amendments to the Labor Law approved by the Council of Ministers, 6 August 2024 (Royal Decree No. M/44), in force 19 February 2025: probation, notice, leave and resignation procedure (summaries by King & Spalding, Clyde & Co, 2024–2025); no change to Articles 84–85 reported.