How end of service is calculated in Saudi Arabia
Under Article 84 of the Saudi Labour Law, when the employment relationship ends the employer pays:
- Half a month's wage for each of the first five years of service;
- One full month's wage for each year after that;
- Part of a year counts proportionally.
award = wage × ½ × min(years, 5) + wage × max(years − 5, 0)
If you resign (Article 85)
| Years of service | You receive |
|---|---|
| Less than 2 years | Nothing |
| 2 to under 5 years | One third of the award |
| 5 to under 10 years | Two thirds of the award |
| 10 years or more | The full award |
When you get the full award even if you leave
Under Article 87 the full award is due if you leave because of force majeure, or if a female employee ends the contract within six months of marriage or three months of giving birth. Under Article 81 you also keep your full rights if you leave because the employer breached their obligations.
Example
Last wage SAR 10,000, 10 years of service, contract ended: (5 × 5,000) + (5 × 10,000) = SAR 75,000. Resigning after 7 years: full award SAR 45,000 × ⅔ = SAR 30,000.
The award is based on the last actual wage (usually basic salary plus fixed allowances such as housing and transport). This calculator is a guide — for special cases check with HR or the Ministry of Human Resources (MHRSD).
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 a full month's wage for every year after that, based on your last wage. Partial years count proportionally.
How much end of service do I get if I resign?
Nothing before 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years, and the full amount after 10 years.
Is housing allowance included?
The award uses the last actual wage, which normally includes basic salary and fixed allowances such as housing and transport.
Do expats get end of service in Saudi Arabia?
Yes. The Labour Law applies to Saudi and non-Saudi employees in the private sector alike.