Gulf EOSB

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.

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
1 Fixed-term contract ended · Fixed-term · 8 years 55,000 SAR
2 I resigned · 1 year 11 months 0 SAR
3 I resigned · 2 years 3,333.33 SAR
4 I resigned · 4 years 6,666.67 SAR
5 I resigned · 5 years 8,333.33 SAR
6 I resigned · 5 years 1 day 16,684.93 SAR
7 I resigned · 7 years 30,000 SAR
8 I resigned · 9 years 11 months 49,444.44 SAR
9 I resigned · 10 years 75,000 SAR
10 Dismissed for misconduct (Art. 80) · 7 years 0 SAR
11 Resigned because employer broke the contract (Art. 81) · 7 years 45,000 SAR
12 Force majeure, or woman leaving after marriage or childbirth (Art. 87) · 3 years 15,000 SAR
13 Employer ended my contract · 7 years · 15 unused leave days 50,000 SAR
14 Employer ended my contract · 7 years 10 days 45,273.97 SAR
15 Employer ended my contract · 3 years 6 months · wage 7,500 13,125 SAR
16 Fixed-term contract ended · Fixed-term · 3 years 15,000 SAR
17 Employer ended my contract · 7 years · no valid reason 80,000 SAR
18 Employer ended my contract · 1 year · no valid reason 25,000 SAR
19 Employer ended my contract · Fixed-term · 7 years · no valid reason · 4 months left 85,000 SAR
20 Employer ended my contract · Fixed-term · 7 years · no valid reason · 1 month left 65,000 SAR

Official sources

The 2025 amendments to the Labor Law (in force from 19 February 2025) did not change Articles 84 to 88.

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