End-of-service award after 1 year in Saudi Arabia (wage SAR 10,000)

Rules checked 2 November 2026 · Go Home Early

After 1 year of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 5,000 when the employer ends the contract or a fixed term expires, and SAR 0 when the worker resigns. The full award is 0.5 months of wage.

All 1 year is in the first 5 years, which earn half a month of wage a year: 1 x 0.5 = 0.5 months. The one-month rate has not started yet.

Resigning after 1 year gives no award, because Article 85 starts at 2 years of service. A dismissal or an expired contract pays SAR 5,000 on a wage of SAR 10,000.

One more year of service (2 years) would add SAR 5,000 to the award on a dismissal, taking it to SAR 10,000. For a resignation the award would go from SAR 0 to SAR 3,333. A year at the half-month rate is half a month of wage.

Work out your own award

The working

StepDismissal or expiryResignation
Monthly wageSAR 10,000SAR 10,000
Service1 year1 year
Months of wage in the full award0.5 months0.5 months
Full awardSAR 5,000.00SAR 5,000.00
Share dueall of itnone of it
End-of-service awardSAR 5,000.00SAR 0.00

Private sector, last wage, a part year in proportion, no deduction. Article 85 applies the share only when the worker resigns. A dismissal under Article 80 carries no award.

The same 1 year on other wages

Monthly wageMonths of wageDismissal or expiryResignation
SAR 3,0000.5 monthsSAR 1,500SAR 0
SAR 5,0000.5 monthsSAR 2,500SAR 0
SAR 8,0000.5 monthsSAR 4,000SAR 0
SAR 10,000 (example)0.5 monthsSAR 5,000SAR 0
SAR 12,0000.5 monthsSAR 6,000SAR 0
SAR 15,0000.5 monthsSAR 7,500SAR 0
SAR 20,0000.5 monthsSAR 10,000SAR 0
SAR 25,0000.5 monthsSAR 12,500SAR 0
SAR 30,0000.5 monthsSAR 15,000SAR 0
SAR 40,0000.5 monthsSAR 20,000SAR 0

Common questions

How much end-of-service award is due after 1 year in Saudi Arabia?

On a monthly wage of SAR 10,000, a worker whose employer ends the contract, or whose fixed term expires, gets SAR 5,000 after 1 year: 0.5 months of wage.

Which wage is the award worked out on?

Article 84 uses the last wage, and Article 2 defines wage as the basic wage plus the allowances and other increments due under the contract. Use the whole monthly wage, not the basic wage alone.

What if I resign after 1 year?

Nothing is due on resignation under 2 years of service (Article 85).

Other lengths of service

Award by years of service, 1 to 25 years · End-of-service award calculator · Annual leave pay

Sources

This page shows figures calculated from Articles 84 and 85 of the Saudi Labor Law, as listed on the Sources page. It is general information only. Your contract, your payroll and your personal situation may differ. Rules as at 2 November 2026.