End-of-service award after 16 years in Saudi Arabia (wage SAR 10,000)
After 16 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 135,000 when the employer ends the contract or a fixed term expires, and SAR 135,000 when the worker resigns. The full award is 13.5 months of wage.
The first 5 years earn 2.5 months (5 x 0.5) and the 11 years after them earn 11 months (11 x 1), 13.5 months in all. The full-month rate accounts for 81% of the months.
Resigning after 16 years gives the full award, SAR 135,000, the same as a dismissal, because service of 10 years or more earns it in full.
One more year of service (17 years) would add SAR 10,000 to the award on a dismissal, taking it to SAR 145,000. For a resignation the award would go from SAR 135,000 to SAR 145,000. A year at the full-month rate is one month of wage.
Work out your own awardThe working
| Step | Dismissal or expiry | Resignation |
|---|---|---|
| Monthly wage | SAR 10,000 | SAR 10,000 |
| Service | 16 years | 16 years |
| Months of wage in the full award | 13.5 months | 13.5 months |
| Full award | SAR 135,000.00 | SAR 135,000.00 |
| Share due | all of it | all of it |
| End-of-service award | SAR 135,000.00 | SAR 135,000.00 |
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 16 years on other wages
| Monthly wage | Months of wage | Dismissal or expiry | Resignation |
|---|---|---|---|
| SAR 3,000 | 13.5 months | SAR 40,500 | SAR 40,500 |
| SAR 5,000 | 13.5 months | SAR 67,500 | SAR 67,500 |
| SAR 8,000 | 13.5 months | SAR 108,000 | SAR 108,000 |
| SAR 10,000 (example) | 13.5 months | SAR 135,000 | SAR 135,000 |
| SAR 12,000 | 13.5 months | SAR 162,000 | SAR 162,000 |
| SAR 15,000 | 13.5 months | SAR 202,500 | SAR 202,500 |
| SAR 20,000 | 13.5 months | SAR 270,000 | SAR 270,000 |
| SAR 25,000 | 13.5 months | SAR 337,500 | SAR 337,500 |
| SAR 30,000 | 13.5 months | SAR 405,000 | SAR 405,000 |
| SAR 40,000 | 13.5 months | SAR 540,000 | SAR 540,000 |
Common questions
How much end-of-service award is due after 16 years 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 135,000 after 16 years: 13.5 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 16 years?
Article 85 gives the full award at this length of service: SAR 135,000.
Other lengths of service
Award by years of service, 1 to 25 years · End-of-service award calculator · Annual leave pay
Sources
- Ministry of Human Resources and Social Development: Labor Law, Royal Decree No. M/51 (English translation, Articles 84 and 85)
- Ministry of Human Resources and Social Development: End-of-service award regulations
- Every rule used, with its source and check date: Sources and rates
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.