Sources and rates
Every rule the calculators use, the official page it comes from, and the date it was last checked. The rules are those of the Saudi Labor Law (Royal Decree No. M/51) for the private sector, as read in the English translation on the Ministry of Human Resources and Social Development site, which is the 2005 text. Where the 2025 amendments matter, the Ministry's awareness guide of December 2025 was read. Article numbers refer to the translation.
| Item | Value | Basis and sources | Last checked |
|---|---|---|---|
| End-of-service award | Half a month of wage for each of the first 5 years and one month for each year after; worked on the last wage; a part year in proportion | Labor Law (Royal Decree No. M/51), Article 84
| 2 Nov 2026 Checked against the official source |
| Resignation and the exceptions | Resignation: no award under 2 years, one third from 2 to 5 years, two thirds above 5 and under 10 years, the full award from 10 years; full award for force majeure, or for a woman leaving within 6 months of marriage or 3 months of a birth | Labor Law (Royal Decree No. M/51), Article 85; Article 87
| 2 Nov 2026 Checked against the official source |
| Wage used | Wage means the actual wage: the basic wage plus the other due increments (allowances, regular grants, in-kind benefits); variable pay may be left out by agreement | Labor Law (Royal Decree No. M/51), Article 2 (definitions of basic wage, actual wage, wage); Article 84; Article 86 | 2 Nov 2026 Checked against the official source |
| Ending of the contract | Dismissal for the Article 80 causes carries no award; probation ending carries no award; dues paid within 7 days, or 14 days if the worker ends the contract | Labor Law (Royal Decree No. M/51), Articles 54, 74, 80, 81, 88 | 2 Nov 2026 Checked against the official source |
| Annual leave | 21 days a year, 30 days after 5 consecutive years; unused accrued days paid on leaving, a part year in proportion | Labor Law (Royal Decree No. M/51), Articles 109 and 111 | 2 Nov 2026 Checked against the official source |
| Overtime | Hourly wage plus 50% of the basic wage for each overtime hour; hours on holidays and Eids are overtime | Labor Law (Royal Decree No. M/51), Article 107; the Ministry awareness guide (December 2025), section 3 | 2 Nov 2026 Checked against the official source |
| GOSI social insurance | Annuities branch for Saudi nationals only, 9% employer and 9% employee; other rates not confirmed; no contribution is calculated | GOSI Annuities Branch page (compulsory for Saudi nationals only; 18% of the wage, 9% employer and 9% employee) | 2 Nov 2026 Checked against the official source |
| 2025 amendments | Not applied beyond what the Ministry December 2025 guide repeats; the amended text was not read | Royal Decree No. M/44 of 8/2/1446H amending the Labor Law; reported by law firms and the Ministry awareness guide, amended text not read | 2 Nov 2026 Not confirmed on an official page |
| Conventions of this site | Day's wage = wage ÷ 30; hourly wage = day's wage ÷ 8; service in calendar years, first and last day included | Day's wage and hourly wage follow the worked example in the Ministry awareness guide (wage / 30 / 8); the service year follows the calendar. The Labor Law text gives neither | 2 Nov 2026 Not confirmed on an official page |
Not included or not confirmed
- The Labor Law file read on hrsd.gov.sa is the 2005 translation. Royal Decree No. M/44, in force from February 2025, amended Articles 2, 7, 22 to 25 and others, and the Council of Ministers law portal (laws.boe.gov.sa) did not respond in this check, so the amended text of each article was not read. Articles 84, 85, 87, 107 and 109 are used as in the 2005 text, which the Ministry awareness guide of December 2025 repeats.
- Reports say the 2025 amendments add a definition of resignation tied to fixed-term contracts and a resignation procedure (Article 79 bis), and allow paid compensatory leave in place of overtime pay with the worker's consent. These were taken from secondary sources only and no figure on this site depends on them.
- How a service year is counted. The calculators count calendar years from the first day to the last day, both included, with a part year in proportion to the days of that anniversary year (Article 84 says only 'in proportion to the time spent on the job'). A payroll that counts months or a 360-day year can differ.
- Article 85 reads 'not less than two ... and not more than five' for one third and 'in excess of five ... but less than 10' for two thirds. The calculators put exactly 5 years at one third and exactly 10 years at the full award, as the Ministry knowledge centre and awareness guide do.
- Which wage counts. Article 84 uses 'the last wage', and Article 2 defines wage as the actual wage (basic wage plus allowances and other due increments). The calculators use the whole monthly wage you enter. Article 86 lets the parties leave out commissions and similar variable pay, and in-kind benefits are valued in Article 2; none of that is modelled.
- Whether an end-of-service award is due after a dismissal under Article 80 (the Article says 'without giving the worker an award, advance notice, or indemnity'), after a termination during probation (Article 54), or after a resignation that is not accepted. The calculators show 'no award' for a dismissal under Article 80 and no figure for the other cases.
- Whether a worker who leaves without notice under Article 81 (employer breach) is treated as a resigning worker for Article 85. The calculators do not model this case: the resignation scale is for a plain resignation, and the full-award choices are limited to the Article 87 cases.
- The day's wage as wage divided by 30 and the 8-hour day used for the overtime hourly wage come from the worked example in the Ministry awareness guide. The Labor Law text read gives no divisor, and its Article 98 sets 8 hours a day only as the normal day in other articles.
- How the pay for unused annual leave is counted for a part year and for the step from 21 to 30 days. Article 111 says 'in proportion to the part he spent at work'; this site accrues 21 days a year for the first 5 years and 30 days a year after, pro rata by day.
- Whether the leave pay at the end of service is worked out on the actual wage. Article 111 says 'a wage'; Article 2 defines wage as the actual wage.
- GOSI: the Annuity page read gives 9% employer and 9% employee for Saudi nationals. The SANED employee share of 0.75% was read only in the wording of a GOSI FAQ question, and another GOSI FAQ question mentions an employer share of 1%, so the SANED employer share is not stated. The occupational hazards rate (2% in older GOSI text, 1.5% in a newer page reported by one source) and the rates for Saudi workers hired from 3 July 2024 were not confirmed on a GOSI page. No contribution is calculated.
- For foreign workers the GOSI Annuity page read says the annuities branch applies to Saudi nationals only. The occupational hazards branch covers all workers and is paid by the employer, but its exact rate is not confirmed (see above).
- No official worked example of the end-of-service award was found on the Ministry sites. The results were checked by hand and against a second, independent implementation.
- The Ministry's own end-of-service calculator was not run in this check, so no comparison with its output is given.
Last checked 2 November 2026. These pages are general information only. Found a difference from an official page? Tell us.