Gulf EOSB

End-of-service pay on fixed-term contracts in Saudi Arabia

3 min read Published: By the Gulf EOSB team

Quick answer: when a fixed-term contract expires (or isn’t renewed), you receive the full end-of-service benefit for your whole service. Early endings are different: the employer ending it without a valid reason owes you the benefit plus the wage of the remaining term, while resigning before the end date reduces your share and can expose you to a compensation claim.

Contract expiry: the clean case

Reaching the agreed end date is a normal end of the employment relation, not a resignation. Article 85’s reductions do not apply — you receive the full Article 84 benefit:

Example: 8 years of service at a 10,000 SAR wage → 25,000 + 30,000 = 55,000 SAR. Renewed contracts count as continuous service: three consecutive 2-year contracts are six years of service, not three separate stints.

The employer ends it early without a valid reason

Article 77 compensates you for the broken promise of the remaining term. You receive:

  1. the full end-of-service benefit for the service completed, and
  2. the wage for the remaining period of the contract, with a minimum of two months’ wage.
Scenario (10,000 SAR wage, 7 years served)BenefitCompensationTotal
4 months left on the contract45,00040,00085,000 SAR
1 month left (minimum applies)45,00020,00065,000 SAR

If the dismissal is for a valid reason the compensation does not apply, and a dismissal under Article 80 (grave misconduct, after due process) pays no benefit at all.

You resign before the end date

Two separate effects, and both matter:

Resigning early from a fixed-term contract is the least settled corner of these rules, and contracts often add their own clauses. Read your contract’s early-termination article before resigning, and get advice if the amounts are significant.

Non-renewal, transfers and the 4-year rule

Check your own numbers

Choose Fixed-term in the calculator, pick how the contract ended, and the breakdown shows the benefit, any Article 77 compensation and your leave-day payout line by line. The underlying rules and all 20 worked examples are on the How we calculate page. Also see: resigning before 2 years and what counts as wage.

Work out your own numbers Enter your wage and service in the free calculator and see your estimated settlement step by step.

Related guides

An estimate only, not legal advice. Confirm with your employer or on Qiwa.

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