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:
- half a month’s wage per year for the first five years;
- a full month’s wage per year after that, part years pro rata, on your actual wage (basic + regular allowances).
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:
- the full end-of-service benefit for the service completed, and
- the wage for the remaining period of the contract, with a minimum of two months’ wage.
| Scenario (10,000 SAR wage, 7 years served) | Benefit | Compensation | Total |
|---|---|---|---|
| 4 months left on the contract | 45,000 | 40,000 | 85,000 SAR |
| 1 month left (minimum applies) | 45,000 | 20,000 | 65,000 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:
- Your benefit is reduced on the Article 85 scale by total service: nothing under 2 years, one third from 2 to 5 years, two thirds above 5, full at 10.
- The employer may claim compensation from you for leaving the term unfinished (the mirror image of Article 77), unless your contract says otherwise or you leave for an Article 81 reason (employer breach) — in which case you keep the full benefit instead.
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
- Non-renewal by either side at the end date is treated as expiry: full benefit.
- A fixed-term contract that keeps being renewed, or continues past its end date without paperwork, can convert to an open-ended contract for Saudi employees (renewal beyond set limits). Your Qiwa record shows which type you are on today — the contract type changes which rules apply, which is why our calculator asks for it.
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.