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.
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)
- Saudi Labour Law, Article 84
- Saudi Labour Law, Article 85
- Saudi Labour Law, Article 87
- Saudi Labour Law, Article 2 (wage)
- Saudi Labour Law, Article 10 (periods)
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.
Book a demoWe 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 ended | What is paid | Article |
|---|---|---|
| Employer ended it with notice | The full benefit | Article 75 |
| Employer ended it without a lawful reason | The full benefit | Article 77 |
| Dismissed under Article 80 | No benefit | Article 80 |
| The employee resigned | By length of service (see resignation) | Article 85 |
| Left over the employer’s breach (Article 81) | The full benefit | Article 81 |
| Left because of force majeure | The full benefit | Article 87 |
| She left after marriage or giving birth | The full benefit | Article 87 |
| The contract term ran out | The full benefit | Article 84 |
| Both sides agreed to end it | The full benefit | Article 74 |
| Reached retirement age | The full benefit | Article 74 |
| The business closed or the activity ended | The full benefit | Article 74 |
| The employee died or can no longer work | The full benefit | Article 79 |
| The employer died | The full benefit | Article 79 |
| Ended during probation | No benefit | Article 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:
| Service | How it ended | Benefit |
|---|---|---|
| 3 years | The contract term ran out | 15,000.00 SAR |
| 3 years | The employee resigned | 5,000.00 SAR |
| 7 years | The employee resigned | 30,000.00 SAR |
| 7 years | Employer ended it with notice | 45,000.00 SAR |
| 10 years | The employee resigned | 75,000.00 SAR |
| 1 year and 6 months | The employee resigned | 0.00 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