About this calculator
Under Article 84 of the Saudi Labor Law, the award is half a month’s wage for each of the first five years of service and a full month’s wage for each year after, with parts of a year counted pro rata. It is based on the last actual wage, including regular allowances such as housing and transport.
Under Article 85, an employee who resigns receives nothing with under two years’ service, one third with two to five years, two thirds with five to ten years, and the full award after ten years. Article 87 keeps the full award in some cases, for example force majeure, or a woman leaving within six months of marriage or three months of giving birth.
Worked example
On 12,000 a month after 7½ years, the full award is 5 × ½ × 12,000 + 2.5 × 12,000 = 60,000. If the employer ends the contract you receive all of it; if you resign, you receive two thirds: 40,000.
How to use the end of service calculator (saudi)
- Enter the last monthly wage (basic + allowances).
- Enter the years of service.
- Enter the extra months.
- Choose the how the contract ended.
- Read the result — it updates as you type.
Frequently asked questions
Is end of service calculated on basic salary only?
No. Article 84 uses the last actual wage, which normally includes regular allowances such as housing and transport, not just the basic salary.
What do I get if I resign after 7½ years on 12,000 a month?
The full award would be 30,000 + 30,000 = 60,000; resigning between 5 and 10 years gives two thirds, so 40,000.
Did the 2025 Labor Law amendments change the award?
The amendments in force from February 2025 changed the resignation procedure, not the award formula in Articles 84 and 85.