Gulf EOSB

Resigning before 2 years in Saudi Arabia: do you get end-of-service pay?

3 min read Published: By the Gulf EOSB team

Quick answer: if you resign from an open-ended contract with less than two full years of service, Article 85 of the Saudi Labor Law gives you no end-of-service benefit. You are still owed everything else in your final settlement — unpaid salary, unused annual leave and any other contractual dues.

The two-year rule

The end-of-service benefit (EOSB) rewards length of service. When the employer ends the contract, you receive the benefit whatever your service length. When you resign, Article 85 reduces it on a sliding scale:

Service when you resignShare of the benefit
Less than 2 yearsNothing
2 years up to and including 5 yearsOne third
More than 5 and less than 10 yearsTwo thirds
10 years or moreThe full benefit

The benefit itself is defined by Article 84: half a month’s wage for each of the first five years and a full month’s wage for each year after that, with part years counted pro rata.

Exactly two years is enough

The thresholds are generous at the boundary: two years exactly already earns the one-third share. Service is counted to the day, so resigning even a few days early can mean the difference between nothing and a meaningful amount.

Example (10,000 SAR wage):

You resign atBenefit
1 year 11 months0 SAR
2 years exactly3,333.33 SAR

One month of patience is worth more than three thousand riyals in this example. If you are close to a threshold, the calculator shows a note telling you how many days remain until your share rises.

Resignations that still pay in full

Not every early exit counts as an ordinary resignation. The law protects workers who leave for a reason it considers justified:

These cases can be disputed by employers, so keep evidence and consider advice from the Ministry of Human Resources’ labor offices before acting.

What you get even with zero benefit

A final settlement is more than the EOSB. Even when the benefit is zero, you are owed:

Worth knowing before you decide

The full rules we apply, with 20 worked examples, are on the How we calculate page.

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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