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Saudi End of Service Benefit Calculator

End-of-service award under Saudi Labour Law Article 84–85 — half a month’s wage per year for the first five years and a full month after, reduced to one third or two thirds on resignation.

Last monthly wage (basic + housing + fixed allowances)
Years of service
Additional months
How the contract ends
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How it works

Full award = ½ month × years (first 5) + 1 month × years (after 5). Resignation: 0 (< 2 yrs), ⅓ (2–5 yrs), ⅔ (5–10 yrs), full (10+ yrs)

Saudi Labour Law obliges employers to pay an end-of-service award when employment ends: half a month’s wage for each of the first five years and a full month for each subsequent year, pro-rated for part years and based on the last wage including housing and other fixed allowances (but not commissions or overtime). When the worker resigns the award is scaled down — nothing under two years, a third between two and five, two thirds between five and ten, and the full amount after ten years. The full award is still due on resignation caused by force majeure, or when a female employee resigns within six months of marriage or three months of childbirth. Termination under Article 80 (gross misconduct) forfeits the award entirely.

Worked example

SAR 9,000 wage, 7.5 years, terminated by employer: 5 × 0.5 × 9,000 = 22,500 plus 2.5 × 9,000 = 22,500 → SAR 45,000. Had the employee resigned, two thirds = SAR 30,000.

Frequently asked questions

Does GOSI replace the end-of-service award?

No — GOSI social insurance is a separate pension/insurance contribution. The end-of-service award is an additional employer obligation.

Are fixed-term contract expiries treated as resignation?

No — when a fixed-term contract simply expires, the full award is due (it counts as termination, not resignation).

Related calculators

Based on the current UAE Labour Law (Federal Decree-Law 33 of 2021) and Saudi Labour Law provisions as commonly applied. Free-zone rules (DIFC, ADGM) and individual contracts can differ — confirm with your HR department or the Ministry of Human Resources. Educational estimate, not legal advice.