End-of-service award after 20 years in Saudi Arabia (wage SAR 10,000)

Rules checked 2 November 2026 · Go Home Early

After 20 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 175,000 when the employer ends the contract or a fixed term expires, and SAR 175,000 when the worker resigns. The full award is 17.5 months of wage.

The first 5 years earn 2.5 months (5 x 0.5) and the 15 years after them earn 15 months (15 x 1), 17.5 months in all. The full-month rate accounts for 86% of the months.

Resigning after 20 years gives the full award, SAR 175,000, the same as a dismissal, because service of 10 years or more earns it in full.

One more year of service (21 years) would add SAR 10,000 to the award on a dismissal, taking it to SAR 185,000. For a resignation the award would go from SAR 175,000 to SAR 185,000. A year at the full-month rate is one month of wage.

Work out your own award

The working

StepDismissal or expiryResignation
Monthly wageSAR 10,000SAR 10,000
Service20 years20 years
Months of wage in the full award17.5 months17.5 months
Full awardSAR 175,000.00SAR 175,000.00
Share dueall of itall of it
End-of-service awardSAR 175,000.00SAR 175,000.00

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 20 years on other wages

Monthly wageMonths of wageDismissal or expiryResignation
SAR 3,00017.5 monthsSAR 52,500SAR 52,500
SAR 5,00017.5 monthsSAR 87,500SAR 87,500
SAR 8,00017.5 monthsSAR 140,000SAR 140,000
SAR 10,000 (example)17.5 monthsSAR 175,000SAR 175,000
SAR 12,00017.5 monthsSAR 210,000SAR 210,000
SAR 15,00017.5 monthsSAR 262,500SAR 262,500
SAR 20,00017.5 monthsSAR 350,000SAR 350,000
SAR 25,00017.5 monthsSAR 437,500SAR 437,500
SAR 30,00017.5 monthsSAR 525,000SAR 525,000
SAR 40,00017.5 monthsSAR 700,000SAR 700,000

Common questions

How much end-of-service award is due after 20 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 175,000 after 20 years: 17.5 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 20 years?

Article 85 gives the full award at this length of service: SAR 175,000.

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.