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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

SAR
SAR

Included in wage base per law

Resignation Entitlement Tiers

Years of ServiceEntitlement
Less than 2 yearsNone
2–5 years33%
5–10 years67%
10+ yearsFull

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

    Share or file with HR

Calculation is instant and private — nothing is sent to a server.

Related calculators

How much is end-of-service benefit in Saudi Arabia?

In Saudi Arabia, end-of-service benefit (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 end-of-service benefit in Saudi Arabia?

End-of-service benefit (EOSB) — مكافأة نهاية الخدمة — is a lump sum your employer must pay when your employment ends in Saudi Arabia. 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. 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. 2

    Work out your daily wage

    Daily wage = monthly wage ÷ 30.

  3. 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. 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. 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. 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.

Saudi EOSB rate schedule (Articles 84–85)
Service periodEOSB earned
First 1–5 years½ month’s wage per year (15 days)
6th year onward1 month’s wage per year (30 days)
Resignation, < 2 yearsNo EOSB (Article 85)
Resignation, 2–5 yearsOne-third (⅓) of the total
Resignation, 5–10 yearsTwo-thirds (⅔) of the total
Resignation, 10+ yearsFull 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).

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 90,000

  • 4 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 6,000

  • 12 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 days are excluded from the service period.

  • Private-sector employees

    The Labor Law covers private-sector workers, both Saudi nationals and expatriates. 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 up to 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.
  • 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.

Frequently asked questions

How is end-of-service benefit calculated in Saudi Arabia?

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, 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 wage, which is basic salary plus fixed allowances such as a housing allowance. 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 up to 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 — most importantly a housing allowance — are included in the wage base. One-off or variable payments are generally 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?

If the employer ends the contract, dues must be paid within one week. If you resign, the employer has up to two weeks to settle all entitlements.