sauraSaudi End of Service Calculator
Your end of service award (EOSB) under the Saudi Labor Law, for resignation, termination or the end of your contract, counted to the day
Why did your job end?
Figures last updated: October 2026
How to calculate end of service in Saudi Arabia (2026)
Quick answer
Your end of service award, also called end of service benefit (EOSB) or gratuity, is half a month's wage for each of your first 5 years and a full month's wage for each year after that, with part years counted pro rata (Article 84 of the Saudi Labor Law). It is calculated on your last monthly wage, including housing, transport and other fixed allowances. If you resign, you get nothing under 2 years, one third from 2 to 5 years, two thirds above 5 years and the full award from 10 years. Termination by the employer and the end of a fixed-term contract pay the full award. The amendments in force since 19 February 2025 did not change these rules.
End of service formula and worked examples
Award = monthly wage × ½ × years up to 5 + monthly wage × years after 5. Part of a year counts in months and days, so 3 years and 6 months is 3.5 years. If you resign, multiply the result by your share from the Article 85 table below.
| Case | Wage, SAR | Service | Calculation | Award, SAR |
|---|---|---|---|---|
| Terminated by the employer | 8,000 | 3 years | 8,000 × ½ × 3 | 12,000 |
| Contract term ended | 10,000 | 8 years | (10,000 × ½ × 5) + (10,000 × 3) | 55,000 |
| Resigned | 9,000 | 4 years | 9,000 × ½ × 4 × 1/3 | 6,000 |
| Resigned | 12,000 | 7 years, 6 months | [(12,000 × ½ × 5) + (12,000 × 2.5)] × 2/3 | 40,000 |
| Resigned | 15,000 | 12 years | (15,000 × ½ × 5) + (15,000 × 7) | 142,500 |
Monthly wage means basic salary plus fixed allowances. The calculator counts your service to the day, from your first day to your last working day.
End of service on resignation: the Article 85 scale
| Service | Share | At 10,000 SAR a month |
|---|---|---|
| Less than 2 years | Nothing | 1 year, 11 months: 0 SAR |
| 2 to 5 years | One third | 4 years: 20,000 × 1/3 = 6,666.67 SAR |
| More than 5, less than 10 years | Two thirds | 8 years: 55,000 × 2/3 = 36,666.67 SAR |
| 10 years or more | Full award | 10 years: 75,000 SAR |
Since 19 February 2025 the Labor Law defines a resignation as a written request to end a fixed-term contract, which the employer accepts. It counts as accepted if the employer does not reply within 30 days, and the employer can postpone it by up to 60 days with written reasons. On an open-ended contract you end the job with at least 30 days' written notice instead (Article 75). In practice, leaving by your own choice gets the reduced share above in both cases.
Not renewing is not resigning. The Ministry of Human Resources confirms that choosing not to renew a fixed-term contract is not a resignation, so you keep the full award when your contract term ends.
When you get the full award, and when you get nothing
| How the job ended | End of service award |
|---|---|
| Employer ends the contract, including redundancy | Full award (Article 84) |
| Fixed-term contract ends and is not renewed, by either side | Full award |
| Mutual written agreement to end the contract | Full award |
| You leave because the employer broke the contract or the law | Full award (Article 81) |
| Female employee leaves within 6 months of marriage or 3 months of giving birth | Full award, even under 2 years (Article 87) |
| Force majeure | Full award (Article 87) |
| Retirement age, closure of the business or end of the activity | Full award (Article 74) |
| Death or permanent disability of the employee | Full award, paid to the heirs on death (Article 79) |
| Resignation or notice from the employee | None, one third, two thirds or full (Article 85) |
| Dismissal for misconduct under Article 80 | No award |
| Contract ended during probation | No award (Article 54) |
Which wage counts: basic or total salary
Article 84 uses your last wage, and the Labor Law defines wage as the actual wage: your basic salary plus the allowances and increments you are paid for your work. Use your latest monthly figures, even if you earned less in earlier years.
| Pay item | Included? |
|---|---|
| Basic salary | Yes |
| Housing allowance | Yes. Free housing counts too: up to 2 months' basic salary a year, or more if your contract values it higher |
| Transport and other fixed monthly allowances | Yes |
| Commission or sales percentage | Yes, unless your contract excludes it (Article 86) |
| Bonus written into the contract or paid by custom | Yes |
| Overtime and one-off bonuses | Usually no |
| Piece rate or commission-only pay | Your average pay over the last year of service (Article 96) |
Final settlement: what else your employer owes you
- Unpaid salary up to your last working day.
- Unused annual leave at your daily wage, which is your monthly wage divided by 30 (Article 111). Annual leave is at least 21 days a year, and 30 days after 5 years with the same employer.
- Notice pay if your employer ended an open-ended contract without notice: 60 days if you are paid monthly (Articles 75 and 76).
- Compensation if you were terminated without a valid reason (Article 77): 15 days' wage for each year of service on an open-ended contract, or the wage for the rest of a fixed-term contract, and never less than 2 months' wage.
- A return ticket home for expat employees (Article 40).
- An experience certificate, free of charge, if you ask for it (Article 64).
Your employer can deduct work-related debts from the settlement, such as an outstanding staff loan (Article 88). Ask for a written breakdown before you sign a final clearance.
How to claim your end of service
- Check your contract in QiwaMake sure your start date, wage and contract type in Qiwa match what you were paid. A documented Qiwa contract is strong evidence if there is a dispute.
- Ask for a written final settlementHR should list the award, leave pay and any deductions. Compare it with this calculator before you sign a clearance.
- Wait for the legal deadline1 week after the contract ends, or 2 weeks if you ended it yourself (Article 88).
- File a labor complaint if you are not paidSubmit it online with the Ministry of Human Resources. It goes to amicable settlement first, then to the labor court if there is no agreement.
- Act within 12 monthsLabor courts do not hear claims filed more than 12 months after the job ended, unless the court accepts your excuse or the employer admits the debt.
End of service in Saudi Arabia: common questions
How is end of service calculated in Saudi Arabia?
Half a month's wage for each of your first 5 years of service and a full month's wage for each year after that, with part years counted pro rata (Article 84 of the Labor Law). It uses your last monthly wage including fixed allowances. Example: 10,000 SAR a month and 8 years of service gives 25,000 + 30,000 = 55,000 SAR.
How much end of service do I get if I resign?
Nothing with less than 2 years of service, one third of the award from 2 to 5 years, two thirds above 5 and under 10 years, and the full award from 10 years (Article 85). Example: 4 years at 9,000 SAR gives a full award of 18,000 SAR, so you get 6,000 SAR.
Is end of service calculated on basic salary or total salary?
On your total wage: your last basic salary plus housing, transport and other fixed allowances. Regular commission counts too unless your contract excludes it. Overtime and one-off bonuses are usually left out.
Do I get end of service if I am terminated before 2 years?
Yes. When your employer ends the contract you get the full award for the time you worked, for example 1 year at 6,000 SAR gives 3,000 SAR. The 2 year minimum only applies when you resign. There is no award if you are dismissed under Article 80 or during probation.
Do I get end of service if my contract expires and I do not renew?
Yes, the full award. The Ministry of Human Resources confirms that choosing not to renew a fixed-term contract is not a resignation, so the Article 85 reduction does not apply.
When must my employer pay end of service?
Within 1 week of the end of the contract, or within 2 weeks if you ended it yourself (Article 88). Your employer can deduct work-related debts, such as a staff loan. If you are not paid, file a labor complaint through the Ministry of Human Resources: claims filed more than 12 months after the job ended are generally not heard.
Did the 2025 Labor Law amendments change end of service?
No. The amendments in force since 19 February 2025 left Articles 84 to 88 unchanged. They changed resignation procedures: a written resignation counts as accepted after 30 days without a reply, and notice on an open-ended contract is 30 days from the employee and 60 days from the employer for monthly-paid staff.
Is end of service the same for Saudis and expats?
Yes. The Labor Law rules apply to both, and GOSI contributions do not replace the award. Domestic workers and civil servants are not covered by the Labor Law and follow separate rules.
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Official sources we used:
- Ministry of Human Resources (HRSD): Saudi Labor Law, English text
- HRSD: end of service award regulations
- HRSD: guide to the Labor Law amendments in force on 19 February 2025 (Arabic)
- HRSD: labor education questions on contracts and wages
- Ministry of Justice: labor calculator
The calculator and this guide are for guidance only. Your contract, your Qiwa record and the labor court decide the final amount.