Saudi employment & financial tools

Saudi End-of-Service Benefits (EOSB) calculator

Estimate your statutory end-of-service gratuity in Saudi Riyals (SAR) under the Saudi Labour Law (Royal Decree No. M/51, Articles 84, 85, 87 and 80). Enter your last monthly wage, exact service duration and the reason your employment is ending.

Saudi Labour Law (Articles 84, 85 & 87)
Estimated payable End-of-Service AwardSAR 35,000.00
Total service length6.00 years
Statutory entitlement fraction100% of statutory award
First 5 years base (0.5 month/yr)SAR 25,000.00
Years beyond 5 base (1.0 month/yr)SAR 10,000.00
Full Article 84 base award (before tier)SAR 35,000.00
Net payable awardSAR 35,000.00

Saudi Labour Law Article 84

Educational estimate based on Saudi Labour Law Articles 84, 85, 87 and 80. Does not include accrued untaken annual leave (Article 111), unpaid salary, or notice-period compensation. Verify your official calculation through the Qiwa / MHRSD End-of-Service calculator and your Qiwa contract terms.

How Saudi End-of-Service Benefits are calculated

Under Article 84 of the Saudi Labour Law, the full base end-of-service award is calculated from your last monthly wage:

  • First 5 years of service: Half a month's wage (0.5 × monthly wage) for each year of service.
  • Each year beyond 5 years: One full month's wage (1.0 × monthly wage) for each subsequent year of service.
  • Partial years: Fractions of a year (additional months and days) are calculated proportionally.

Resignation tiers vs. contract completion (Article 85)

Whether you receive the full base award or a fraction depends on how the employment relationship ends:

Separation categoryService lengthFraction of base awardStatutory reference
Contract expiry, employer termination, or mutual agreementAny duration100% (Full award)Article 84
Employee resignationLess than 2 years0% (No award)Article 85
Employee resignation2 years to less than 5 years1/3 (33.33%)Article 85
Employee resignation5 years to less than 10 years2/3 (66.67%)Article 85
Employee resignation10 years or more100% (Full award)Article 85
Force majeure or qualifying marriage/childbirth resignationAny duration100% (Full award)Article 87

Worked examples (SAR 10,000 monthly wage)

  • 4 years, contract completed (Article 84): 4 × 0.5 × SAR 10,000 = SAR 20,000.
  • 4 years, employee resigns (Article 85): One-third of SAR 20,000 = SAR 6,666.67.
  • 7 years, employee resigns (Article 85): First 5 years (2.5 months = SAR 25,000) + next 2 years (2 months = SAR 20,000) = SAR 45,000 base award. Two-thirds of SAR 45,000 = SAR 30,000.
  • 10 years, employee resigns (Article 85): First 5 years (SAR 25,000) + next 5 years (SAR 50,000) = SAR 75,000 (100% payable).

Which salary components count toward EOSB?

Saudi Labour Law calculates the end-of-service award on the worker’s actual gross wage (basic wage plus fixed cash allowances such as housing and transport), unless the employment contract explicitly agrees to exclude certain variable commissions or percentages of sales. Accrued untaken annual leave must be paid out separately on the gross wage under Article 111 and cannot be deducted from your EOSB.

Payment deadlines and settlement disputes

Under Article 88, when the employment contract ends, the employer must pay the worker’s wages and settle all entitlements within a maximum of one week (or within two weeks if the worker terminated the contract). Do not sign a final settlement receipt waiving unpaid entitlements before the funds reach your bank account.

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