How the end-of-service award is calculated
The wage used
Your last actual wage: basic salary plus fixed allowances such as housing and transport.
Full award (Art. 84)
Half a month's wage for each of the first five years, a full month for each year after; parts of a year pro rata.
Share due
Full on contract end or employer termination. On resignation, the Article 85 shares apply.
Award on resignation (Article 85)
| Length of service | Share of the award |
|---|---|
| Under 2 years | None |
| 2 to 5 years | One third |
| Over 5 and under 10 years | Two thirds |
| 10 years or more | Full award |
Approximate award by length of service
In monthly wages, with the amount for a SAR 10,000 monthly wage in brackets.
| Service | Contract end or employer termination | Resignation |
|---|---|---|
| 1 year | 0.5 × wage (SAR 5,000) | 0 × wage (SAR 0) |
| 2 years | 1 × wage (SAR 10,000) | 0.33 × wage (SAR 3,333) |
| 3 years | 1.5 × wage (SAR 15,000) | 0.5 × wage (SAR 5,000) |
| 5 years | 2.5 × wage (SAR 25,000) | 0.83 × wage (SAR 8,333) |
| 7 years | 4.5 × wage (SAR 45,000) | 3 × wage (SAR 30,000) |
| 10 years | 7.5 × wage (SAR 75,000) | 7.5 × wage (SAR 75,000) |
| 15 years | 12.5 × wage (SAR 125,000) | 12.5 × wage (SAR 125,000) |
| 20 years | 17.5 × wage (SAR 175,000) | 17.5 × wage (SAR 175,000) |
Good to know before you claim
Payment deadline. Within a week if the employer ended the employment, within two weeks if the employee did (Art. 88).
Leave is separate. Pay for unused annual leave comes on top of the award (Art. 111).
Use the end date. Service ends on your last actual working day, not the day you handed in your resignation.
Private sector. This follows the Labor Law. Government employees fall under civil service and pension rules.
End of service FAQ
How is the end-of-service award calculated in Saudi Arabia?
Under Article 84 of the Labor Law: half a month's wage for each of the first five years and a full month's wage for each year after, with parts of a year counted pro rata, based on the employee's last actual wage.
How much do I get if I resign?
Under Article 85: nothing for less than two years of service, one third of the award for two to five years, two thirds for more than five but under ten years, and the full award for ten years or more.
Are allowances included in the end-of-service award?
Yes. The award is based on the actual wage: basic salary plus fixed allowances paid regularly, such as housing and transport. Commissions and variable bonuses depend on the contract and how they are paid.
When is the full award due despite resignation?
Under Article 87: when the employee leaves due to force majeure beyond their control, or when a female employee ends the contract within six months of her marriage or three months of giving birth. Also when the employee leaves in the cases Article 81 allows because of the employer's breach.
When is no award due?
On dismissal under Article 80 for serious misconduct, and on resignation before completing two years of service.
When must the employer pay the award?
Under Article 88: within one week of the end of employment if the employer ended it, and within two weeks if the employee ended the contract.
Does the award include unused leave?
No. Pay for unused annual leave is a separate entitlement paid on top of the end-of-service award (Article 111).