End-of-service award after 7 years in Saudi Arabia (wage SAR 10,000)

Rules checked 2 November 2026 · Go Home Early

After 7 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 45,000 when the employer ends the contract or a fixed term expires, and SAR 30,000 when the worker resigns. The full award is 4.5 months of wage.

The first 5 years earn 2.5 months (5 x 0.5) and the 2 years after them earn 2 months (2 x 1), 4.5 months in all. The full-month rate accounts for 44% of the months.

Resigning after 7 years gives two thirds of the award, SAR 30,000 of SAR 45,000. The full award is due once service reaches 10 years.

One more year of service (8 years) would add SAR 10,000 to the award on a dismissal, taking it to SAR 55,000. For a resignation the award would go from SAR 30,000 to SAR 36,667. 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
Service7 years7 years
Months of wage in the full award4.5 months4.5 months
Full awardSAR 45,000.00SAR 45,000.00
Share dueall of it2/3
End-of-service awardSAR 45,000.00SAR 30,000.00

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 7 years on other wages

Monthly wageMonths of wageDismissal or expiryResignation
SAR 3,0004.5 monthsSAR 13,500SAR 9,000
SAR 5,0004.5 monthsSAR 22,500SAR 15,000
SAR 8,0004.5 monthsSAR 36,000SAR 24,000
SAR 10,000 (example)4.5 monthsSAR 45,000SAR 30,000
SAR 12,0004.5 monthsSAR 54,000SAR 36,000
SAR 15,0004.5 monthsSAR 67,500SAR 45,000
SAR 20,0004.5 monthsSAR 90,000SAR 60,000
SAR 25,0004.5 monthsSAR 112,500SAR 75,000
SAR 30,0004.5 monthsSAR 135,000SAR 90,000
SAR 40,0004.5 monthsSAR 180,000SAR 120,000

Common questions

How much end-of-service award is due after 7 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 45,000 after 7 years: 4.5 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 7 years?

Article 85 gives two thirds of the award at this length of service: SAR 30,000.

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.