The formula (Articles 84–85)
| Service | Award per year |
|---|---|
| Years 1–5 | ½ month’s wage |
| Year 6 onwards | 1 month’s wage |
On resignation, the full award is multiplied by:
| Service at resignation | Share of award |
|---|---|
| Under 2 years | 0 |
| 2 to under 5 years | ⅓ |
| 5 to under 10 years | ⅔ |
| 10 years or more | Full |
Worked example
8 years’ service, last wage SAR 12,000 (basic + housing + transport)
- First 5 years: 5 × ½ × 12,000 = SAR 30,000
- Next 3 years: 3 × 12,000 = SAR 36,000
- Termination or end of contract: SAR 66,000
- Resignation (5–10 years, ⅔): SAR 44,000
Notes
Saudi nationals receive the end-of-service award in addition to their GOSI pension rights. The calculator uses calendar days ÷ 365 for part years, so it may differ by a few riyals from systems that count months. See also the GOSI calculator and the Saudi payroll guide.
Frequently asked questions
How is end of service calculated in Saudi Arabia?
Half a month's wage for each of the first five years and one month's wage for each later year, pro rata for part years (Labour Law Art. 84). There is no cap.
What do I get if I resign in Saudi Arabia?
Nothing with less than two years' service, one third of the award for 2–5 years, two thirds for 5–10 years, and the full award after 10 years (Art. 85).
Which salary is used: basic or total?
The law refers to the last 'wage', meaning the actual wage. HRSD guidance and legal analysis indicate that fixed allowances such as housing and transport are generally included, while commissions can be excluded by agreement. Many calculators use basic only, which understates the award.
When are there no resignation reductions?
The full award applies if the worker leaves because of force majeure, or for a woman who resigns within six months of marriage or three months of giving birth (Art. 87).
How soon must end of service be paid?
Within one week if the employer ends the contract, and within two weeks if the worker does (Art. 88).