End-of-service award after 5 years in Saudi Arabia (wage SAR 10,000)
After 5 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 25,000 when the employer ends the contract or a fixed term expires, and SAR 8,333 when the worker resigns. The full award is 2.5 months of wage.
5 years is the last length of service paid wholly at half a month a year: 5 x 0.5 = 2.5 months of wage. Every year after the fifth earns a full month.
At exactly 5 years a resignation still gets one third, SAR 8,333, because Article 85 gives two thirds to service in excess of 5 years. Service a day longer moves the share to two thirds, SAR 16,733 at 5.01 years.
One more year of service (6 years) would add SAR 10,000 to the award on a dismissal, taking it to SAR 35,000. For a resignation the award would go from SAR 8,333 to SAR 23,333. 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 | 5 years | 5 years |
| Months of wage in the full award | 2.5 months | 2.5 months |
| Full award | SAR 25,000.00 | SAR 25,000.00 |
| Share due | all of it | 1/3 |
| End-of-service award | SAR 25,000.00 | SAR 8,333.33 |
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 5 years on other wages
| Monthly wage | Months of wage | Dismissal or expiry | Resignation |
|---|---|---|---|
| SAR 3,000 | 2.5 months | SAR 7,500 | SAR 2,500 |
| SAR 5,000 | 2.5 months | SAR 12,500 | SAR 4,167 |
| SAR 8,000 | 2.5 months | SAR 20,000 | SAR 6,667 |
| SAR 10,000 (example) | 2.5 months | SAR 25,000 | SAR 8,333 |
| SAR 12,000 | 2.5 months | SAR 30,000 | SAR 10,000 |
| SAR 15,000 | 2.5 months | SAR 37,500 | SAR 12,500 |
| SAR 20,000 | 2.5 months | SAR 50,000 | SAR 16,667 |
| SAR 25,000 | 2.5 months | SAR 62,500 | SAR 20,833 |
| SAR 30,000 | 2.5 months | SAR 75,000 | SAR 25,000 |
| SAR 40,000 | 2.5 months | SAR 100,000 | SAR 33,333 |
Common questions
How much end-of-service award is due after 5 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 25,000 after 5 years: 2.5 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 5 years?
Article 85 gives one third of the award at this length of service: SAR 8,333.
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.