End-of-service award after 8 years in Saudi Arabia (wage SAR 10,000)
After 8 years of service on a wage of SAR 10,000 a month, the end-of-service award in the Saudi private sector is SAR 55,000 when the employer ends the contract or a fixed term expires, and SAR 36,667 when the worker resigns. The full award is 5.5 months of wage.
The first 5 years earn 2.5 months (5 x 0.5) and the 3 years after them earn 3 months (3 x 1), 5.5 months in all. The full-month rate accounts for 55% of the months.
Resigning after 8 years gives two thirds of the award, SAR 36,667 of SAR 55,000. The full award is due once service reaches 10 years.
One more year of service (9 years) would add SAR 10,000 to the award on a dismissal, taking it to SAR 65,000. For a resignation the award would go from SAR 36,667 to SAR 43,333. 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 | 8 years | 8 years |
| Months of wage in the full award | 5.5 months | 5.5 months |
| Full award | SAR 55,000.00 | SAR 55,000.00 |
| Share due | all of it | 2/3 |
| End-of-service award | SAR 55,000.00 | SAR 36,666.67 |
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 8 years on other wages
| Monthly wage | Months of wage | Dismissal or expiry | Resignation |
|---|---|---|---|
| SAR 3,000 | 5.5 months | SAR 16,500 | SAR 11,000 |
| SAR 5,000 | 5.5 months | SAR 27,500 | SAR 18,333 |
| SAR 8,000 | 5.5 months | SAR 44,000 | SAR 29,333 |
| SAR 10,000 (example) | 5.5 months | SAR 55,000 | SAR 36,667 |
| SAR 12,000 | 5.5 months | SAR 66,000 | SAR 44,000 |
| SAR 15,000 | 5.5 months | SAR 82,500 | SAR 55,000 |
| SAR 20,000 | 5.5 months | SAR 110,000 | SAR 73,333 |
| SAR 25,000 | 5.5 months | SAR 137,500 | SAR 91,667 |
| SAR 30,000 | 5.5 months | SAR 165,000 | SAR 110,000 |
| SAR 40,000 | 5.5 months | SAR 220,000 | SAR 146,667 |
Common questions
How much end-of-service award is due after 8 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 55,000 after 8 years: 5.5 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 8 years?
Article 85 gives two thirds of the award at this length of service: SAR 36,667.
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.