How we calculate your end-of-service benefit
This calculator follows the Saudi Labor Law. Below are the rules it applies and the worked examples it is checked against every time the site is built. If any example fails, the site is not published.
- Based on Saudi Labor Law, Articles 84, 85 and 77
- Checked against 20 worked examples
- Rules last checked: October 2026
The rules we apply
- Wage
- Your last actual wage: basic pay plus regular allowances such as housing (Article 2).
- Service
- Years, months and days of service. A year counts as 365 days; part years are counted pro rata.
- Benefit
- Half a month's wage for each of the first 5 years, then a full month's wage for each further year (Article 84).
- Resignation
- Under 2 years: nothing. 2 to 5 years (5 included): one third. More than 5 and under 10 years: two thirds. 10 years or more: the full benefit (Article 85).
- Full benefit
- Contract expiry, employer ending the contract, mutual agreement, retirement age, Article 81 and Article 87 cases.
- No benefit
- Dismissal for misconduct under Article 80.
- Unfair dismissal
- Added compensation (Article 77): 15 days' wage per year for open-ended contracts, or the wage for the remaining term for fixed-term contracts, at least 2 months' wage.
- Leave pay
- Unused annual leave is paid at the daily wage: monthly wage ÷ 30 × days.
Worked examples
Monthly wage 10,000 SAR unless stated.
| No | Situation | Expected | Calculator |
|---|---|---|---|
| 1 | Fixed-term contract ended · Fixed-term · 8 years | 55,000 SAR | 55,000 Matches |
| 2 | I resigned · 1 year 11 months | 0 SAR | 0 Matches |
| 3 | I resigned · 2 years | 3,333.33 SAR | 3,333.33 Matches |
| 4 | I resigned · 4 years | 6,666.67 SAR | 6,666.67 Matches |
| 5 | I resigned · 5 years | 8,333.33 SAR | 8,333.33 Matches |
| 6 | I resigned · 5 years 1 day | 16,684.93 SAR | 16,684.93 Matches |
| 7 | I resigned · 7 years | 30,000 SAR | 30,000 Matches |
| 8 | I resigned · 9 years 11 months | 49,444.44 SAR | 49,444.44 Matches |
| 9 | I resigned · 10 years | 75,000 SAR | 75,000 Matches |
| 10 | Dismissed for misconduct (Art. 80) · 7 years | 0 SAR | 0 Matches |
| 11 | Resigned because employer broke the contract (Art. 81) · 7 years | 45,000 SAR | 45,000 Matches |
| 12 | Force majeure, or woman leaving after marriage or childbirth (Art. 87) · 3 years | 15,000 SAR | 15,000 Matches |
| 13 | Employer ended my contract · 7 years · 15 unused leave days | 50,000 SAR | 50,000 Matches |
| 14 | Employer ended my contract · 7 years 10 days | 45,273.97 SAR | 45,273.97 Matches |
| 15 | Employer ended my contract · 3 years 6 months · wage 7,500 | 13,125 SAR | 13,125 Matches |
| 16 | Fixed-term contract ended · Fixed-term · 3 years | 15,000 SAR | 15,000 Matches |
| 17 | Employer ended my contract · 7 years · no valid reason | 80,000 SAR | 80,000 Matches |
| 18 | Employer ended my contract · 1 year · no valid reason | 25,000 SAR | 25,000 Matches |
| 19 | Employer ended my contract · Fixed-term · 7 years · no valid reason · 4 months left | 85,000 SAR | 85,000 Matches |
| 20 | Employer ended my contract · Fixed-term · 7 years · no valid reason · 1 month left | 65,000 SAR | 65,000 Matches |
Official sources
- Labor Law – Bureau of Experts at the Council of Ministers (Arabic)
- End-of-service award regulations – Ministry of Human Resources and Social Development
The 2025 amendments to the Labor Law (in force from 19 February 2025) did not change Articles 84 to 88.