How is end-of-service gratuity calculated?
Article 84 of the Saudi Labor Law says that when a work relationship ends, the employer pays the worker an award for the time worked, based on the last wage:
- half a month’s wage for each of the first five years, and
- one month’s wage for each year after that.
Parts of a year are paid in proportion to the time worked. The calculation has two steps, and then a share is applied depending on how the job ended:
- First five years: half the monthly wage × number of years (up to 5).
- After year five: the full monthly wage × the extra years.
- The full award is multiplied by your share: all of it, two thirds, one third or nothing.
How much you get, by how the job ended
| Situation | What you receive | Article |
|---|---|---|
| Contract period ended, or the employer ended the contract | Full gratuity | 84 |
| Resigned with less than 2 years of service | Nothing | 85 |
| Resigned after 2 to 5 years | One third | 85 |
| Resigned after more than 5 and less than 10 years | Two thirds | 85 |
| Resigned after 10 years or more | Full gratuity | 85 |
| Left because the employer broke their obligations | Full gratuity | 81 |
| Force majeure, or a woman leaving within 6 months of marriage or 3 months of childbirth | Full gratuity | 87 |
| Dismissed for a reason in Article 80 | Nothing | 80 |
Worked examples
Contract ended after 10 years, salary 10,000 SAR
First five years: 5 × 5,000 = 25,000 SAR. Next five years: 5 × 10,000 = 50,000 SAR. You receive 75,000 SAR.
Resigned after 4 years, salary 8,000 SAR
Full gratuity: 4 × 4,000 = 16,000 SAR. Service is between 2 and 5 years, so you get one third: 5,333.33 SAR.
Resigned after 7½ years, salary 12,000 SAR
First five years: 5 × 6,000 = 30,000 SAR. The next 2½ years: 2.5 × 12,000 = 30,000 SAR. Full gratuity is 60,000 SAR, and service is between 5 and 10 years, so you get two thirds: 40,000 SAR.
Which salary is used?
The gratuity is based on your last wage, meaning the actual wage: basic salary plus fixed allowances paid regularly, such as housing and transport. Commissions and sales percentages can be left out only if this was agreed in writing (Article 86).
If your employer gives you housing instead of a cash allowance, check your contract or ask the ministry how it should be valued.
Frequently asked questions
Do foreign workers get end-of-service gratuity in Saudi Arabia?
Yes. Articles 84 and 85 apply to everyone covered by the Labor Law in the private sector, Saudi or foreign. Domestic workers are covered by separate rules.
How are parts of a year counted?
You are paid for part of a year in proportion to the time worked. This calculator counts each month as one twelfth of a year and each day as 1/365.
When must my employer pay?
Within one week of the end of the contract if the employer ended it, and within two weeks if the worker ended it (Article 88). The employer may deduct work-related debts you owe.
My fixed-term contract ended and was not renewed. Do I get the full amount?
Yes. The end of a contract’s term gives the full gratuity under Article 84; the resignation shares do not apply.
I was dismissed without a valid reason. Can I get more?
You may also be owed compensation for unfair dismissal under Article 77. This calculator does not include it. Contact the Ministry of Human Resources (call centre 19911) or a lawyer.
Where can I complain if I am not paid?
You can file a labour complaint with the Ministry of Human Resources and Social Development through its website or app, or call 19911. Keep a copy of your contract, salary slips and this statement.
Last reviewed: October 2026, based on the Labor Law text published by the Bureau of Experts at the Council of Ministers. The result is an estimate for planning and is not legal advice. For your specific case, contact the Ministry of Human Resources and Social Development.
This page was translated from Arabic. If something is unclear or wrong, please tell us.