Saudi end of service calculator

How the law works it out

The Saudi Labor Law sets the end-of-service award in Articles 84 to 88. Royal Decree M/44, which amended the law from 19 February 2025, did not change these articles.

• Article 84, the award. “A half-month wage for each of the first five years and a one-month wage for each of the following years”, on “the last wage”, with part years “in proportion to the time spent on the job”.
• Article 85, if you resign. “One third of the award after service of not less than two consecutive years and not more than five years, to two thirds if his service is in excess of five consecutive years but less than 10 years, and to the full award if his service amounts to 10 years or more.” HRSD adds that a worker who resigns with less than two years “shall not be entitled to end-of-service award”.
• Article 87, the full award anyway. If you leave “due to a force majeure beyond his control”, and for a woman who ends her contract “within six months from the date of her marriage or three months from the date of giving birth”. The Arabic text counts the six months from the date of the marriage contract.
• Article 86, commissions. The contract may leave “all or some of the commissions, sales percentages, and similar wage components” out of the wage used for the award.
• Article 88, when it is paid. Within one week of the contract ending, or within two weeks if the worker ended it. The employer may deduct work-related debts.

There is no cap on the award in these articles.

How the calculator counts. It uses the Gregorian calendar, counting from your first to your last working day, both included. Completed years run from anniversary to anniversary, and a part year is counted by its share of that year’s days. The resignation shares use completed years, so a leap day never moves you into another share. The law itself counts periods on the Hijri calendar unless your contract says otherwise (Article 10). HRSD’s 2025 model contract uses the Gregorian calendar.

Worked example

This example is ours, worked from Articles 84 and 85. Neither the law nor HRSD publishes one.

A worker’s last actual wage is SAR 2,400 a month. They worked exactly 8 years.

First 5 years (half a month x 5 x 2,400)

SAR 6,000.00

Next 3 years (one month x 3 x 2,400)

SAR 7,200.00

Full award, if the employer ended the contract

SAR 13,200.00

If the same worker resigned, Article 85 gives two thirds, because 8 years is more than five and less than ten: 13,200 x 2/3 = SAR 8,800.

Your wage includes allowances

This is the opposite of the UAE rule. In the UAE, gratuity is worked out on the basic wage only. In Saudi Arabia, Article 2 of the Labor Law says “Wage: actual wage”, and defines the actual wage as “the basic wage plus all other due increments”. Its list includes:

• commission or a percentage of sales or profits,
• allowances paid for your effort or for risks at work,
• increments to meet the cost of living or family expenses,
• grants or rewards, and
• benefits in kind, valued at up to two months’ basic wage a year, unless your contract values them higher.

So enter your last monthly wage with your housing, transport and other allowances. If your contract leaves out commissions or similar variable pay, as Article 86 allows, leave them out too.

Who this calculator does not cover

• Domestic workers. The Labor Law excludes “domestic workers and the like” (Article 7). Their award is in the Regulation for Domestic Workers and Those in Similar Positions (Ministerial Decision 40676), Article 22: “one month’s wage for every four consecutive years of service with the domestic employer”, on the last wage. For example, a domestic worker on SAR 1,500 a month for 8 years: SAR 3,000. The regulation has no rule for part periods. Domestic workers’ contracts run through HRSD’s Musaned platform. More in our Saudi Arabia guide.
• Probation and dismissal without an award. If the contract ends during probation, “neither party shall be entitled to compensation nor shall the worker be entitled to an end-of-service award” (Article 54). Article 80 lists other cases where the employer may end the contract without an award, such as assault, serious misconduct, forgery to get the job, or long unexplained absence.
• Unpaid leave. Under Article 116, the contract “shall be deemed suspended” for unpaid leave beyond 20 days, unless both sides agree otherwise. The calculator counts your dates as you enter them. Ask HRSD how a suspended period affects your service.
• Leaving because of the employer. Article 81 lets a worker leave without notice, “without prejudice to all of his statutory rights”, in cases such as the employer not meeting essential obligations, fraud about the job, or abuse. That is not the same as resigning, so the Article 85 cut may not apply. This calculator cannot judge such cases: ask HRSD.
• Other pay. Unpaid wages, leave pay and notice pay are separate, and the employer may deduct work-related debts (Article 88).

No Saudi pension for OFWs

GOSI, the Saudi social insurance agency, says its “Annuities Branch covers only Saudis”. Non-Saudi workers are covered only by the Occupational Hazards branch: work injuries and occupational disease, at 2% of the wage, “paid monthly only by the employer”. So there is no Saudi pension for OFWs. Your end-of-service award, your SSS and Pag-IBIG, and your own savings are what you take home.

If you and your employer disagree

This page cannot tell you what your employer has to pay you: only your contract, your records and the Ministry of Human Resources and Social Development (HRSD) can. HRSD’s contact page gives its customer service number, 19911. The Migrant Workers Offices in Riyadh, Jeddah and Al Khobar help Filipino workers. Their contacts are in our Saudi Arabia guide.

HRSD’s 2025 awareness guide points to an end-of-service calculator, but HRSD’s calculator page returned an error on 20 October 2026. HRSD publishes no worked example.

What to do with your end-of-service pay

A plain order to think about, as information only:

1. Keep a cash buffer for the months between jobs or after you come home. The emergency fund calculator works out how much.
2. Bring your SSS and Pag-IBIG up to date, since there is no Saudi pension to fall back on. See the SSS guide for OFWs and the Pag-IBIG guide.
3. Look at the government savings options, such as Pag-IBIG MP2, and the other choices in our investing guides.

Moving a large sum home? See sending money home. The working abroad hub has the full order for saving on an overseas salary.

Working elsewhere in the Gulf

The UAE, Qatar and Kuwait each set end-of-service pay in their own labour law. The UAE gratuity calculator works out the UAE’s.

Mango & Umbrella is independent. We are not part of, or endorsed by, the Saudi Ministry of Human Resources and Social Development, GOSI or any Saudi or Philippine government agency.