End of service calculator

Saudi Arabia

Work out what is owed when service ends under the Saudi Labour Law — dismissal or resignation.

Last actual monthly wage

Basic plus regular allowances — Article 84 settles on the actual wage, not basic.

First day of service

Last day of service

Result

Enter the dates and wage to see the gratuity.

The calculation runs in your browser; nothing is sent to a server.

How the gratuity is calculated

Article 84 sets what accrues: half a month’s wage for each of the first five years, a full month for each year after, with fractions of a year paid in proportion. Article 85 then reduces it if the employee resigned.

The first five years

Half a month’s wage per year. Five full years is two and a half months.

Gratuity = years × (wage ÷ 2)

Beyond the fifth

A full month for each subsequent year. Seven years is 2.5 then 2, so 4.5 months.

Gratuity = 2.5 + (years − 5)

Which wage counts

The last actual wage — basic plus regular allowances — not basic alone.

Part years

Paid in proportion: six months into the current year earns half of what that year is worth.

The common mistake

Applying one rate to the whole of service. Seven years at 10,000 is neither seven months nor three and a half, but four and a half — 45,000. The second mistake is calculating on basic pay alone, when Article 84 settles on the last actual wage, allowances included.

What resignation does — Article 85

Where the employee resigns, the full award is only reached at ten years. Dismissal by the employer pays in full at any length of service.

Service	Share of the gratuity
Under two years	Nothing
Two to five years	One third
Five to ten years	Two thirds
Ten years or more	The full amount

When you need this

Checking what you are owed before resigning
Verifying a final settlement you have been offered
Preparing the entitlements of a departing employee
Estimating a company’s accrued gratuity liability
Weighing resignation now against reaching a statutory threshold

Common questions

How is end-of-service gratuity calculated in Saudi Arabia?

Half a month’s wage for each of the first five years and a full month for each year after, on the last actual wage. Seven years at 10,000 gives 45,000 where the employer ended the contract.

What do I get if I resign?

Nothing below two years, one third from two to five, two thirds from five to ten, and the full amount at ten years — under Article 85.

Basic wage or total wage?

The last actual wage the worker received: basic plus regular allowances such as housing and transport. Using basic alone produces a figure below what is owed.

Do part years count?

Yes. Article 84 provides for payment in proportion to the time served in the part year, so months beyond the whole years are not lost.

Are there cases where leaving still pays in full?

Yes — the statute provides cases where an employee who ends the contract keeps the full award, including leaving for a legitimate reason attributable to the employer, and certain circumstances specific to female employees. Those sit outside this tool; check with the competent authority.

Is this legal advice?

No. It applies the published text of Articles 84 and 85. An actual dispute goes to the labour office or the labour court.

This tool applies the statutory minimum in the Saudi Labour Law (Articles 84 and 85) and measures service in Gregorian years. It does not cover the exceptional cases where the full award survives an employee-initiated departure. Your contract or company regulations may be more generous, never less. It is for guidance and does not replace legal advice.

For employers

Final settlements worked out by hand?

End-of-service gratuity is an accruing liability, and when it is tracked manually it is only provisioned at the moment someone leaves. We connect HR systems to payroll so entitlements and provisions are calculated automatically.

Talk to us Our services

Free tools