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End-of-service calculator

Saudi end-of-service benefit calculator

Enter the wage, the service dates and how the job ended. The amount shows as you type, with the article behind each rule.

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What counts as the wage?

The actual wage: basic plus housing and every other fixed allowance. Paid by piece, output or wholly by commission? Divide what they earned by the days they actually worked (over the last year, for piece or output) and multiply by 30 (Articles 96 and 2).

End-of-service benefit

Fill these in to see the benefit:

  • Last monthly wage
  • First day of service
  • Last working day

Figures follow the articles cited and are an estimate for guidance.

Sources (5)

Service is counted in Gregorian years, last working day included, as the unified employment contract specifies; the law’s default, where a contract is silent, is the Hijri calendar (Article 10).

In Dawmt you start by picking the employee, the reason and the last day

Their wage, allowances and start date are already on their record, so nothing is retyped. The same screen can include leave encashment and a share of the flight ticket.

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We last checked these rules against the official texts on 5 October 2026.

How the end-of-service benefit is worked out in Saudi Arabia

Article 84 of the Labour Law works the benefit (often called gratuity) out on the last wage: half a month’s wage for each of the first five years, and a full month’s wage for each year after that. Part years count pro rata by days served, so six months comes to about half a year.

In figures: benefit = wage × 0.5 × years up to five, + wage × years after five. How the job ended then decides how much of it is paid: all of it in most cases, a share on resignation (Article 85), or nothing in three cases.

These rules come from the text as amended by Royal Decree M/44, in force since 19 February 2025. The amendments left Articles 84, 85 and 87 unchanged.

For the step-by-step guide with the full texts: how the end-of-service benefit is calculated.

To work out the monthly GOSI contributions on a salary: GOSI calculator.

What each ending pays

How the job endedWhat is paidArticle
Employer ended it with noticeThe full benefitArticle 75
Employer ended it without a lawful reasonThe full benefitArticle 77
Dismissed under Article 80No benefitArticle 80
The employee resignedBy length of service (see resignation)Article 85
Left over the employer’s breach (Article 81)The full benefitArticle 81
Left because of force majeureThe full benefitArticle 87
She left after marriage or giving birthThe full benefitArticle 87
The contract term ran outThe full benefitArticle 84
Both sides agreed to end itThe full benefitArticle 74
Reached retirement ageThe full benefitArticle 74
The business closed or the activity endedThe full benefitArticle 74
The employee died or can no longer workThe full benefitArticle 79
The employer diedThe full benefitArticle 79
Ended during probationNo benefitArticle 54

On resignation: nothing before two continuous years, a third from two to five years, two thirds over five and under ten, and the full benefit from ten years (Article 85). The exceptions: an employee who leaves through force majeure, and a woman who ends her contract within six months of her marriage contract or three months of giving birth, are owed the full benefit (Article 87).

Worked examples on a 10,000 SAR wage

Worked out by this calculator, on an actual wage of 10,000 SAR a month:

ServiceHow it endedBenefit
3 yearsThe contract term ran out15,000.00 SAR
3 yearsThe employee resigned5,000.00 SAR
7 yearsThe employee resigned30,000.00 SAR
7 yearsEmployer ended it with notice45,000.00 SAR
10 yearsThe employee resigned75,000.00 SAR
1 year and 6 monthsThe employee resigned0.00 SAR

Which wage the benefit is based on

The actual wage, not the basic alone. Article 2 defines the wage as the basic plus every increase due on top of it: housing, transport and every other fixed allowance. Working it out on the basic alone, as many pages say, gives less than is owed.

The last wage is the base (Article 84). For pay by piece or output, take the daily average over the days actually worked in the last year; for pay wholly by commission, what was earned over the days actually worked, divided by those days (Article 96). Multiply the daily average by 30 for a monthly wage. Both sides may agree to leave commission and sales percentages out (Article 86).

When it must be paid

Within a week at most of the job ending, or two weeks when the employee ended the contract. The employer may deduct any work-related debt the employee owes (Article 88).

What this calculator leaves out

  • Unused annual leave: paid on top of the benefit, for every day of leave due and not taken, part years pro rata (Article 111).
  • Compensation for ending without a lawful reason: unless the contract sets its own, 15 days’ wage a year on an open-ended contract, or the wage for the rest of a fixed term, and not less than two months’ wage (Article 77).
  • Wages for the last days worked and anything else the contract itself owes.
  • Staff under the civil or military service rules: outside the Labour Law. Government workers who come under the Labour Law are covered by it (Article 5).
  • Domestic workers: they have their own regulation.

Questions people ask

Is the benefit worked out on the basic salary or the full wage?

On the actual wage: basic plus housing and every other fixed allowance (Article 2), taking the last wage as the base (Article 84).

How much is the end-of-service benefit on resignation?

A share by length of service: nothing under two years, a third up to five, two thirds under ten, the full benefit from ten (Article 85), except in the Article 87 cases, which pay it in full. Resigning after 7 years on 10,000 SAR, the full benefit is 45,000 SAR and two thirds of it is due: 30,000 SAR.

How much is the benefit after 10 years?

Seven and a half months’ wage: half a month for each of the first five years and a month for each of the next five. It is paid in full even on resignation, because service reached ten years. On 10,000 SAR, that is 75,000 SAR.

When is no end-of-service benefit due?

In three cases: the contract ended for one of the reasons in Article 80, after the employee had the chance to object; it ended during probation (Article 54); or the employee resigned before two continuous years (Article 85), outside the Article 87 cases.

Is it due when a contract ends or is not renewed?

Yes, in full. A fixed term running out is one of the endings in Article 74, and no text reduces the benefit for it.

Is unused leave part of the benefit?

No. Pay for unused annual leave is a separate right, paid on top when the employee leaves (Article 111).

Is service counted in Hijri or Gregorian years?

The law’s default is Hijri unless the contract says otherwise (Article 10); the unified employment contract says Gregorian, which is what the calculator uses, last working day included.

End of service in Dawmt

The rest of an exit, in the same platform

The wage, allowances and start date are already on the employee’s record, so the benefit is worked out in payroll, under Employee Separation, with nothing retyped and no side spreadsheet.

  • End-of-service settings that follow your company’s policy
  • End the employee’s social insurance (GOSI) registration
  • The final exit visa through Muqeem
  • Payroll paid through Mudad and the WPS bank file
  • The Wage Protection System (WPS) bank file
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