How it's calculated
The award is based on your last monthly wage and your length of service: half a month's wage for each of the first five years and a full month's wage for each year after that. Parts of a year count in proportion.
If you resign, you receive part of the award depending on your service: nothing under 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years and the full award from 10 years. Termination by the employer, contract expiry and Article 87 cases receive the full award.
Service is counted in days from your first to your last working day (both included), minus unpaid leave, divided by 365. The wage is your basic salary plus the regular allowances you enter. If your contract dates are in Hijri, convert them first with the Hijri to Gregorian converter.
The main rules were read against Articles 2 and 84 to 87 of the Labor Law as published by HRSD, but a qualified reviewer has not yet checked them. The methodology page lists what is still open.
Worked examples
- 5 years, contract ended (wage 10,000 SAR): 5 × ½ × 10,000 = 25,000 SAR
- 8 years, terminated: (5 × ½ + 3 × 1) × 10,000 = 55,000 SAR
- 8 years, resigned: 55,000 × ⅔ = 36,666.67 SAR
End of service on resignation in Saudi Arabia
- Under 2 years: no award.
- 2 to under 5 years: one third of the award.
- 5 to under 10 years: two thirds of the award.
- 10 years or more: the full award.
Which wage is used?
Article 84 uses the last wage, and Article 2 defines wage as the actual wage: basic pay plus other amounts due for the work, such as allowances. Some published summaries say basic salary only, which does not match that text. This calculator adds the allowances you enter. Article 86 allows an agreement to leave commissions out.
What this calculator does not cover
Government employees, domestic workers, dismissal under Article 80, disputes over the contract or wage, and amounts other than the end-of-service award (for example unused leave or notice pay).
Working in the UAE instead? Use the UAE gratuity calculator.
Frequently asked questions
How is end of service calculated in Saudi Arabia?
Half a month's wage for each of the first five years and one month's wage for each later year, with parts of a year counted in proportion. Resignation reduces the award depending on service.
Do I get end of service if I resign before 2 years?
Under the rules used here, no. From 2 years you receive one third, from 5 years two thirds and from 10 years the full award.
Are housing and transport allowances included?
Yes, when they are part of your wage. Article 84 uses the last wage, and Article 2 defines wage as the actual wage, which goes beyond basic pay.
Does unpaid leave count as service?
No. Unpaid leave days are removed from the service period before the award is calculated.
Is this the official HRSD calculation?
No. It is an independent estimate. For a binding figure, ask your employer or the Ministry of Human Resources (HRSD).
Is anything I enter sent or saved?
No. The calculation runs in your browser and nothing you type leaves your device or appears in the address bar.