Saudi end-of-service award calculator, 2026

The rule

Article 84 of the Labor Law (Royal Decree No. M/51) gives a worker, when the employment relation ends, an award equal to half a month's wage for each of the first 5 years and one month's wage for each year after that. It is worked on the last wage, and a part of a year counts in proportion to the time spent on the job.

Resignation

If the worker resigns, Article 85 pays one third of the award after service of not less than 2 years and not more than 5, two thirds in excess of 5 years and under 10, and the full award from 10 years. Under 2 years nothing is due. Article 87 gives the full award whatever the service if the worker leaves for a force majeure beyond his control, or if a woman ends her contract within six months of her marriage or three months of giving birth.

Wage

Article 2 defines the wage as the actual wage: the basic wage plus the other increments due under the contract. Enter the whole monthly wage. Article 86 lets the parties leave out variable commissions; that is not modelled.

Convention used

Service runs from the first day to the last day, both included, in calendar years. The days after the last anniversary count in proportion to the length of that anniversary year. Article 84 gives no counting method, so a payroll that counts months can differ.

Not included

A termination during probation (Article 54, no award), the compensation for an invalid termination (Article 77, a separate payment), deductions the employer may make for work-related debts (Article 88), and anything the Executive Regulation or the 2025 amendments change that could not be read. See Sources and rates.

Examples: award by years of service · resignation or dismissal.