End-of-service award after 4 years in Saudi Arabia (wage SAR 10,000)

Rules checked 2 November 2026 · Go Home Early

After 4 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 20,000 when the employer ends the contract or a fixed term expires, and SAR 6,667 when the worker resigns. The full award is 2 months of wage.

All 4 years are in the first 5 years, which earn half a month of wage a year: 4 x 0.5 = 2 months. The one-month rate has not started yet.

Resigning after 4 years gives one third of the award, SAR 6,667 of SAR 20,000. The share rises to two thirds only once service is in excess of 5 years.

One more year of service (5 years) would add SAR 5,000 to the award on a dismissal, taking it to SAR 25,000. For a resignation the award would go from SAR 6,667 to SAR 8,333. 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
Service4 years4 years
Months of wage in the full award2 months2 months
Full awardSAR 20,000.00SAR 20,000.00
Share dueall of it1/3
End-of-service awardSAR 20,000.00SAR 6,666.67

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 4 years on other wages

Monthly wageMonths of wageDismissal or expiryResignation
SAR 3,0002 monthsSAR 6,000SAR 2,000
SAR 5,0002 monthsSAR 10,000SAR 3,333
SAR 8,0002 monthsSAR 16,000SAR 5,333
SAR 10,000 (example)2 monthsSAR 20,000SAR 6,667
SAR 12,0002 monthsSAR 24,000SAR 8,000
SAR 15,0002 monthsSAR 30,000SAR 10,000
SAR 20,0002 monthsSAR 40,000SAR 13,333
SAR 25,0002 monthsSAR 50,000SAR 16,667
SAR 30,0002 monthsSAR 60,000SAR 20,000
SAR 40,0002 monthsSAR 80,000SAR 26,667

Common questions

How much end-of-service award is due after 4 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 20,000 after 4 years: 2 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 4 years?

Article 85 gives one third of the award at this length of service: SAR 6,667.

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.