End-of-Service Benefit Calculator
Saudi Arabia End-of-Service Gratuity Calculator
Free, accurate, and instant — based on Saudi Labor Law (Royal Decree M/51), Articles 84, 85 & 87
Saudi Arabia End-of-Service Gratuity Calculator
Based on Saudi Labor Law (Royal Decree M/51), Articles 84, 85 & 87
Resignation Entitlement Tiers
| Years of Service | Entitlement |
|---|---|
| Less than 2 years | None |
| 2–5 years | 33% |
| 5–10 years | 67% |
| 10+ years | Full |
Applies only if you resign. Termination or contract expiry is always paid in full, regardless of years served.
Your result will include
Total gratuity in SAR
Instantly calculated, no sign-up
Year-by-year accrual table
See exactly how gratuity builds over time
Law citation & legal notes
Saudi Labor Law (Royal Decree M/51), Articles 84, 85 & 87
Downloadable PDF report
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Calculation is instant and private — nothing is sent to a server.
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How much is end-of-service benefit in Saudi Arabia?
In Saudi Arabia (KSA), the end-of-service benefit (ESB, also written EOSB) is half a month’s wage for each of the first five years of service and a full month’s wage for every year after that. It is calculated on your last wage — basic salary plus fixed allowances such as housing — and there is no cap. If your employer ends the contract you receive it in full (Article 84); if you resign, Article 85 reduces it by your length of service. This is set by the Saudi Labor Law (Royal Decree M/51), Articles 84–87.
- Wage base
- Last wage (basic + allowances)
- Years 1–5
- ½ month’s wage per year
- Year 6 onward
- 1 month’s wage per year
- Minimum service
- None for termination; 2 yrs to resign
- Maximum
- No cap
- On resignation
- Reduced by Article 85 tiers
Last reviewed: July 2026
What is the end of service benefit (ESB) in Saudi Arabia?
The end-of-service benefit (ESB, also written EOSB or EOS; in Arabic مكافأة نهاية الخدمة) is a lump sum your employer must pay when your employment ends in Saudi Arabia (KSA). It rewards continuous service and functions as a statutory payout for the Kingdom’s private-sector workforce, in addition to GOSI social insurance for Saudi nationals.
EOSB is governed by the Saudi Labor Law (Royal Decree M/51). Article 84 sets the amount and confirms full entitlement when the employer ends the contract or a fixed-term contract expires; Article 85 reduces the amount when the employee resigns; and Article 87 restores full entitlement in special cases such as force majeure or a woman leaving within six months of marriage or three months of childbirth.
This calculator applies Articles 84 and 85 exactly: it uses your last wage (basic plus fixed allowances), counts your service, applies the half-month and full-month rates, and — if you resigned — applies the correct Article 85 fraction, so you get the same figure your employer should pay.
How Saudi end-of-service benefit is calculated
The Saudi formula uses your last wage — including fixed allowances — and two rates. Follow these steps, or just use the calculator above.
- 1
Start from your last wage
Use your final monthly wage: basic salary plus fixed allowances (for example a housing allowance, whether paid in cash or in kind). This is the Article 84 basis.
- 2
Work out your daily wage
Daily wage = monthly wage ÷ 30.
- 3
Count the first five years at half a month
For each of the first five years you earn half a month’s wage (15 days): 15 × daily wage × years.
- 4
Count later years at a full month
For every year beyond the fifth you earn a full month’s wage (30 days): 30 × daily wage × those years.
- 5
Prorate any partial year
A partial final year is paid in proportion to the days worked, at the rate that applies to that year.
- 6
Apply the Article 85 reduction if you resigned
If you resigned, multiply the full amount by the Article 85 fraction for your service length (see the table below). Termination and contract expiry are always paid in full. There is no maximum cap.
| Service period | EOSB earned |
|---|---|
| First 1–5 years | ½ month’s wage per year (15 days) |
| 6th year onward | 1 month’s wage per year (30 days) |
| Resignation, < 2 years | No EOSB (Article 85) |
| Resignation, 2–5 years | One-third (⅓) of the total |
| Resignation, over 5 to under 10 years | Two-thirds (⅔) of the total |
| Resignation, 10 years or more | Full amount |
Termination, mutual agreement, and expiry of a fixed-term contract always pay the full amount (Article 84), which accrues from day one — there is no minimum service period and no upper cap. The two-year threshold applies only to resignation (Article 85).
How to calculate end of service in KSA, with worked examples
Saudi EOSB calculation examples
Three worked examples on the last wage (basic + allowances), daily wage = wage ÷ 30. Your own figures will differ — run them in the calculator above.
10 years, employer termination
- Last wage: SAR 12,000 → daily wage = 12,000 ÷ 30 = SAR 400
- First 5 years: ½ month × 5 = 2.5 months
- Next 5 years: 1 month × 5 = 5 months → 7.5 months total
- 7.5 × SAR 12,000 = SAR 90,000, paid in full under Article 84.
EOSBSAR 90,0004 years, resignation
- Last wage: SAR 9,000 → full award = ½ month × 4 = 2 months
- 2 × SAR 9,000 = SAR 18,000 (full entitlement)
- Resignation at 2–5 years → one-third under Article 85
- SAR 18,000 × ⅓ = SAR 6,000.
EOSB (⅓)SAR 6,00012 years, resignation
- Last wage: SAR 15,000 → daily wage = SAR 500
- Full award = 2.5 months + 7 months = 9.5 months
- 9.5 × SAR 15,000 = SAR 142,500
- Resignation at 10+ years → full amount under Article 85.
EOSB (full)SAR 142,500
Who is eligible for EOSB in Saudi Arabia?
EOSB applies to private-sector employees under the Labor Law. How much you receive depends on your service length and how the contract ends.
No minimum for termination — prorated from day one
For employer termination or contract expiry there is no minimum service period: Article 84 grants an award for the fractions of a year in proportion to time worked, so it accrues from your first day. Resignation is different: under Article 85 nothing is due below two years. Unpaid leave of up to 20 days in a work year still counts as service; only the days beyond that are excluded (Articles 2 and 116).
Private-sector employees
The Labor Law covers private-sector workers, both Saudi nationals and expatriates, and also workers that government bodies hire on labour contracts (Article 5). Civil servants and military personnel are not covered: they have their own retirement systems. Saudi nationals are additionally covered by GOSI (social insurance / pension).
How the contract ends matters
Employer termination, mutual agreement, and expiry of a fixed-term contract give full entitlement (Article 84). Resignation is reduced under Article 85.
Special full-entitlement cases
Under Article 87, full EOSB is due despite resignation in cases of force majeure, or when a woman ends her contract within six months of marriage or three months of giving birth.
Domestic workers
Domestic workers are covered by separate regulations, not the general Labor Law provisions used here.
Dismissal under Article 80
An employee lawfully dismissed for one of the serious reasons in Article 80 may lose entitlement to EOSB.
Resignation vs termination, and contract types
Article 84 vs Article 85: if the employer ends the contract, you reach a mutual settlement, or a fixed-term contract expires, you receive the full EOSB (Article 84). If you resign, Article 85 reduces the amount based on how long you served.
Article 85 resignation tiers: less than two years of service means no EOSB; two to five years pays one-third of the full award; more than five and less than ten years pays two-thirds; and ten years or more pays the full amount. So the ten-year mark is the point at which resignation and termination pay the same.
Article 87 special cases: full EOSB is still due despite resignation in cases of force majeure, and when a woman ends her contract within six months of her marriage or three months of childbirth. If one of these applies to you, treat the result as the full (Article 84) amount rather than the reduced resignation figure.
Contract types: expatriates in Saudi Arabia work on fixed-term (definite) contracts, while Saudi nationals may hold indefinite contracts. When a fixed-term contract runs to its agreed end, that is expiry under Article 84 (full EOSB), not resignation — but ending a fixed-term contract early on your own initiative is treated like resignation.
Common Saudi EOSB mistakes
Calculating on basic salary only
Unlike the UAE, Saudi EOSB uses the last wage — basic salary plus fixed allowances. Leaving out a fixed housing allowance understates the result.
Ignoring the housing allowance
A fixed housing allowance counts toward the wage base, whether paid in cash or provided in kind.
Assuming resignation always pays full
Before ten years, resignation is reduced to one-third or two-thirds under Article 85. Only ten years or more pays in full.
Expecting a cap
There is no maximum on Saudi EOSB, unlike the UAE’s two-year cap.
Confusing Article 84 with Article 85
Article 84 (termination / expiry) pays in full; Article 85 (resignation) applies the reduction. Mixing them up gives the wrong number.
Forgetting the higher rate after year five
Years one to five accrue half a month each; from year six the rate rises to a full month per year.
Tips for employees in Saudi Arabia
- Check your contract for your basic salary and every fixed allowance — together they form your EOSB wage base.
- If you are considering resigning, the ten-year mark matters: full entitlement begins at ten years of continuous service.
- Your employer must settle your dues within one week if they end the contract, and within two weeks if you resign (Article 88). End of service is only one line of that settlement.
- Cross-check your figure with an official tool such as Qiwa, Mudad, or the MHRSD calculator.
- If your settlement looks wrong, you can raise it through Qiwa or file a labour complaint with the Ministry (MHRSD) before litigation.
Important legal notes
Governing law
Saudi Labor Law (Royal Decree M/51): Article 84 (entitlement and amount), Article 85 (resignation reduction), and Article 87 (special full-entitlement cases).
Wage base: the actual wage, not basic salary
Article 2 defines two separate terms, the basic wage and the actual wage (basic plus all other due allowances and increases). Article 84 calculates the award on the last wage without narrowing it to basic, so the broader definition governs, and the Ministry's own official calculator asks for the actual wage. A fixed housing allowance is included. If housing or another benefit is provided in kind, Article 2 values it at up to two months' basic wage a year unless the contract sets a higher value. Commission and sales percentages also form part of the actual wage, but Article 86 lets the contract exclude them from the end-of-service base.
Saudi nationals and GOSI
Saudi nationals are also covered by GOSI social insurance. EOSB here reflects the Labor Law entitlement, not any separate GOSI pension.
Estimate, not legal advice
This tool gives an accurate estimate for guidance. Confirm your final figure with your employer, Qiwa/MHRSD, or a qualified lawyer before acting.
Frequently asked questions
How is end-of-service benefit calculated in Saudi Arabia?
The ESB computation is half a month’s wage for each of the first five years of service and a full month’s wage for every year after that, calculated on your last wage (basic salary plus fixed allowances). There is no cap. If you resign, Article 85 reduces the amount by length of service — Saudi Labor Law (Royal Decree M/51), Articles 84–85.
Is Saudi EOSB based on basic salary or total salary?
On the last actual wage, which is basic salary plus fixed allowances such as a housing allowance. Some payroll guides state that only basic salary counts. Article 2 defines the actual wage as basic plus all other due allowances, Article 84 calculates on the last wage without limiting it to basic, and the Ministry's official calculator asks for the actual wage. Unlike the UAE, Saudi Arabia does not use basic salary alone.
How much end-of-service do I get if I resign in Saudi Arabia?
Under Article 85: less than 2 years of service gets nothing; 2 to 5 years gets one-third of the full award; more than 5 and less than 10 years gets two-thirds; and 10 years or more gets the full amount.
Do I get full end of service after 10 years if I resign?
Yes. Once you complete ten years of continuous service, resignation pays the full EOSB — the same as employer termination.
Is there a maximum end-of-service benefit in Saudi Arabia?
No. Saudi Labor Law does not cap the total EOSB, unlike the UAE’s two-year wage cap.
What is the difference between Article 84 and Article 85?
Article 84 sets the EOSB amount and gives full entitlement when the employer ends the contract or a fixed-term contract expires. Article 85 reduces the amount when the employee resigns, based on years of service.
Are housing and transport allowances included in Saudi EOSB?
Fixed allowances that form part of the regular wage, above all a housing allowance, are included in the wage base. Commission and sales percentages are part of the actual wage too (Article 2), but Article 86 allows the contract to exclude them from the end-of-service base. A bonus counts if it is in your contract or work rules, or paid so regularly that it is treated as wage; a genuinely discretionary one does not.
What is the minimum service to qualify for EOSB in Saudi Arabia?
For employer termination or contract expiry there is no minimum — Article 84 prorates the award for fractions of a year, so it accrues from your first day. Resignation is the exception: under Article 85 no EOSB is due below two years of service.
How long does my employer have to pay my end-of-service?
Under Article 88, if the employer ends the contract, dues must be paid within one week. If you end it, the employer has up to two weeks to settle all entitlements. The employer may deduct any work-related debt you owe from the amount.
Is this the same as the Qiwa or MHRSD ESB calculator?
No. Mukafi is an independent EOS calculator, not a government service. It applies the same Articles 84 and 85 on the same actual-wage base as the Ministry's official end-of-service calculator, and adds a year-by-year breakdown and a PDF. In a dispute the official tools and the labour courts decide, so confirm your figure there.
Is ESB the same as EOS, gratuity or severance pay?
In Saudi Arabia, yes. ESB, EOSB, EOS, gratuity and severance pay all name the same Article 84 end-of-service award. Company accounts carry it as an end-of-service provision, but your right to the award does not depend on that provision. It is not the same as Article 77 compensation, which is paid on top when a contract is ended without a legitimate reason.
Does this apply to government employees, public-school teachers or military staff?
Not to civil servants, public-school teachers employed as civil servants, or military personnel, who have their own civil-service and military retirement systems. The Labor Law does cover workers that government bodies hire on labour contracts (Article 5), private-school teachers and other private-sector staff. Article 7 excludes a few further groups, such as domestic workers, who have their own regulations.
Is Article 77 compensation paid on top of end of service?
Yes. If a contract is ended without a legitimate reason, Article 77 gives the other party separate compensation unless the contract sets an amount: 15 days' wage for each year of service on an indefinite contract, or the wage for the rest of the term on a fixed-term contract, and never less than two months' wage. It is in addition to the end-of-service award, which Article 84 owes either way.
How do I count my years of service in years, months and days?
From your first working day to your last. The calculator counts complete years from your start date, then the days after the last full year, and takes out any unpaid leave you enter (only days beyond 20 in a work year, Articles 2 and 116). Someone who started on 1 March 2019 and left on 15 September 2026 has 7 years, 6 months and 14 days of service. The calculator shows that beside the decimal figure, and the award counts it as 7 full years and 198 days, with Article 84 paying the part-year in proportion.