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Saudi end-of-service calculator

Enter the start date, the last working day and the last wage, then choose how the job ended. You get the full award, what is actually due and every step, under Articles 84 and 85 of the Saudi Labor Law.

How did the job end?
Length of service
Last monthly wage (SAR)

Shown as its own line: daily wage × days.

How end-of-service is calculated in Saudi Arabia

The Saudi Labor Law sets the award in two steps: how much the award is (Article 84), then how much of it is due on resignation (Article 85).

  • Article 84: the award

    Half a month's wage for each of the first five years and a full month's wage for each year after that, on the last wage, with part years pro rata. It applies in full when the employer ends the contract or a fixed-term contract expires.

  • Article 85: on resignation

    Under 2 years: nothing. From 2 up to 5 years: one third. More than 5 and under 10 years: two thirds. 10 years or more: the full award.

  • Which wage counts

    The actual wage under Article 2: the basic wage plus the fixed allowances the employee is entitled to, such as housing and transport. Article 86 lets the parties agree to leave out commissions and sales percentages, in whole or in part.

  • Unused leave

    Unused annual leave is paid on top of the award (Article 111): daily wage × days. Payment is due within one week of the end of employment, or two weeks after a resignation (Article 88).

Two worked examples

Terminated after 7 years

Wage: 8,000 basic + 2,000 housing
10,000
First 5 years × 5,000
25,000
2 years × 10,000
20,000
Award due
45,000 SAR

Resigned after 3 years

Monthly wage
10,000
3 years × 5,000 = full award
15,000
Share on resignation
1/3
Award due
5,000 SAR

Source: Saudi Labor Law, Royal Decree No. M/51, Articles 2, 84, 85, 86, 87, 88 and 111, as published by the Bureau of Experts at the Council of Ministers (laws.boe.gov.sa).

End-of-service questions

  • Usually, yes. The award is worked out on the actual wage: the basic wage plus fixed allowances the employee is entitled to, such as housing and transport, under Article 2 of the Labor Law. The parties may agree to leave out commissions and sales percentages (Article 86). Check which allowances your contract lists.

Tadbir ERP calculates this automatically

Instead of working it out by hand for each employee, Tadbir ERP's HR & Payroll keeps each wage, allowance and start date, and calculates the provision and the final settlement with payroll.

  • Payroll with WPS files
  • Muqeem, Qiwa and Nitaqat reporting
  • Built around the Saudi Labor Law
  • Used by 85+ businesses

Want your system to do this for you?

Send your details and we will walk you through Tadbir's payroll and end-of-service on your own company's setup. We reply within 2 hours.

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