عربي
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SAR
SAR
Housing, transport and other fixed allowances.
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Unpaid leave and unexcused absence don't count as service.

How end-of-service is calculated in Saudi Arabia

  • Half a month's wage for each of the first five years, then one month's wage for each year after that (Article 84).
  • Uses your last full wage: basic salary plus fixed allowances such as housing and transport. Commissions can be excluded by agreement.
  • Part years count in proportion to the time worked.
  • If you resign, the award is reduced (Article 85): nothing under 2 years, one third for 2–5 years, two thirds for 5–10 years, and the full award after 10 years.
  • You keep the full award if your employer ends the contract, a fixed-term contract expires, you leave under Article 81, because of force majeure, or as a woman leaving within 6 months of marriage or 3 months of giving birth (Article 87).
  • Dismissal for misconduct under Article 80 removes the award.

If you resign

ServiceWhat you get
Less than 2 yearsNo award
2 to 5 yearsOne third
More than 5, less than 10 yearsTwo thirds
10 years or moreFull award

Worked example

Basic SAR 8,000 plus SAR 3,000 allowances, 7 years, resigned½ month per year (first 5 years): 5 years → SAR 27,500.00
1 month per year (after 5 years): 2 years → SAR 22,000.00
Resigned after 5–10 years: two thirds of the award (Art. 85)Gratuity: SAR 33,000.00

Questions people ask

Is the Saudi gratuity calculated on basic salary or total salary?

On the full wage: basic salary plus fixed allowances like housing and transport. That's why this calculator adds your allowances for Saudi Arabia.

Do I get end-of-service if I resign in Saudi Arabia before 2 years?

No. Under Article 85, a resignation before 2 years of service gives no award. If your employer ends the contract, you're paid for the time worked, however short.

Did the 2025 Labor Law amendments change the gratuity formula?

The amendments in force from 19 February 2025 changed resignation and notice procedures, but the award formula in Article 84 stayed the same.

How long does my employer have to pay?

The final settlement is due within one week if the employer ends the contract, and within two weeks if you resign.

Compare the GCC

CountryRateSalary usedMinimum serviceIf you resignCap
Saudi Arabia½ month/yr (5 yrs), then 1 monthBasic + allowancesNoneReduced: none <2 yrs, ⅓, ⅔, full at 10None
UAE21 days/yr (5 yrs), then 30 daysBasic only1 yearNo cut24 months
Qatar3 weeks/yr (minimum)Basic only1 yearNo cutNone
Kuwait15 days/yr (5 yrs), then 1 monthBasic + allowancesNoneReduced: none <3 yrs, ½, ⅔, full at 1018 months
Bahrain½ month/yr (3 yrs), then 1 monthBasic onlyNoneNo cutNone
Oman1 month/yr (since Jul 2023)Basic onlyNoneNo cutNone

Official sources