End of Service Calculator Saudi Arabia (2026)

Use the KSA Guides End of Service Calculator for Saudi Arabia to estimate your end-of-service benefit (EOSB), also called gratuity or the end-of-service award, under the current Saudi Labor Law. It applies the Article 84 accrual formula, Article 85 resignation reductions, and key exceptions such as Articles 80, 81 and 87. You can calculate by exact dates or by years, months and days, with the result shown step by step in Saudi riyals.

How Is End of Service Calculated in Saudi Arabia?

The core EOSB formula is progressive. The first five years accrue at a lower rate, while service after the fifth year accrues at a full month of wage for each year. The calculation is based on the worker’s last applicable wage, and a partial year is not simply ignored.

Saudi EOSB formula

For service up to five years: EOSB = last applicable monthly wage × 0.5 × years of service.

For service over five years: EOSB = (last applicable monthly wage × 0.5 × 5) + (last applicable monthly wage × service after five years).

The calculator uses a 30-day month for proportional day calculations. This also makes it easy to value unused leave at a daily wage of monthly wage ÷ 30.

Is Saudi End of Service Calculated on Basic Salary or Total Salary?

This is one of the most important differences between a useful Saudi gratuity calculator and an oversimplified one. The Saudi Labor Law defines wage as the actual wage, and Article 84 uses the last wage as the basis of the award. Actual wage starts with the basic wage and can include other due wage components under the employment contract, work regulations, or established practice.

Depending on the worker’s arrangement, relevant wage components can include certain allowances, commissions, sales or profit percentages, cost-of-living increases, regular bonuses and benefits in kind. Article 86, however, permits an agreement to exclude all or some commissions, sales percentages and similar variable elements that naturally rise and fall.

End of Service Benefit on Resignation in Saudi Arabia

Article 85 applies a separate entitlement scale when the employment relationship ends because of the worker’s resignation. The important boundaries are two years, five years and ten years.

Exactly five years matters: Article 85 places service of up to and including five years in the one-third band. The two-thirds band starts only after five years. At ten years, the worker reaches full entitlement.

Article 87 exceptions: full EOSB in qualifying cases

Article 87 overrides the normal resignation reduction in specified circumstances. It provides the full award when the worker leaves because of force majeure beyond their control. It also provides a full award to a female worker who terminates the contract within six months of marriage or within three months of delivery.

Leaving work under Article 81

Article 81 allows a worker to leave without notice while retaining statutory rights in listed cases, including serious employer breaches, deception about work conditions, certain fundamentally different work assignments, assault or improper conduct, harsh or humiliating treatment, an unremedied serious workplace danger, or employer conduct that effectively forces the worker to appear to be the terminating party. Because the facts matter, choose this option only if the situation genuinely falls within Article 81.

When Can an Employee Receive No EOSB?

Two important situations can result in a zero end-of-service award under the Labor Law framework used by this calculator:

• Termination during probation: Article 54 states that when the contract is terminated during the probationary period, the worker is not entitled to an end-of-service award for that period.
• Valid Article 80 dismissal: Article 80 lists serious cases in which an employer may terminate without award, notice or compensation, subject to the statutory conditions and the worker being given an opportunity to state their objections.

Article 80 should not be selected merely because an employer used the word “dismissal.” Whether Article 80 legally applies can depend on evidence, warnings, procedure and the actual reason for termination.

Contract Expiry, Non-Renewal and Contract Type

The Article 84 EOSB accrual formula is not a different formula simply because a contract is fixed-term or indefinite-term. Contract type matters more for how the contract ends, notice requirements and possible compensation outside EOSB.

For a fixed-term contract, expiry or a decision not to renew is not automatically the same as resignation. Saudi labor guidance distinguishes non-renewal from resignation. This is why the calculator provides a separate “fixed-term expiry / non-renewal” option.

If a fixed-term or indefinite contract is ended unlawfully, compensation under Article 77 may arise separately. That compensation is not the same thing as EOSB and is intentionally not auto-added by this calculator because contract clauses and the legal reason for termination can change the result.

Saudi End of Service Calculation Examples

Example 1: 4 years 6 months, employer termination

Last applicable monthly wage: SAR 8,000. Service: 4.5 years. The entire period falls within the first-five-year band:

SAR 8,000 × 0.5 × 4.5 = SAR 18,000.

Example 2: 4 years 6 months, resignation

The full Article 84 amount is still SAR 18,000, but Article 85 applies one-third because the worker has at least two years and not more than five years of service:

SAR 18,000 × 1/3 = SAR 6,000.

Example 3: 7 years 3 months, resignation

Last applicable wage: SAR 12,000. First five years: SAR 12,000 × 0.5 × 5 = SAR 30,000. Remaining 2.25 years: SAR 12,000 × 2.25 = SAR 27,000. Full award = SAR 57,000. Because service is more than five but less than ten years, the resignation entitlement is two-thirds:

SAR 57,000 × 2/3 = SAR 38,000.

EOSB vs Final Settlement: They Are Not the Same

Your end-of-service award is only one part of what may appear in a Saudi final settlement. Depending on the case, the settlement can also include salary still due, payment for unused annual leave, contractual allowances or commissions, notice-related amounts, Article 77 compensation, reimbursements, or lawful deductions.

Article 111 provides for payment for accrued leave days that remain unused when the worker leaves. The optional section in this calculator therefore estimates unused leave separately using the daily wage. It does not assume how many days you have left; enter the balance shown in your employment records.

When Must the Employer Pay the Final Settlement?

Article 88 sets a clear settlement timeline. When the worker’s service ends, the employer must generally pay wages and settle entitlements within a maximum of one week from the end of the contractual relationship. If the worker is the party who ends the contract, the period may be up to two weeks. Work-related debts owed by the worker can be deducted from amounts due, subject to applicable law.

Saudi Resignation Rules After the 2025 Labor Law Amendments

The Labor Law amendments that took effect on 19 February 2025 introduced a more explicit resignation process through Article 79 bis. A resignation request is considered accepted if 30 days pass without an employer response. The employer may postpone acceptance for up to 60 days when work interests require it, with a written explanation given within the required period. The worker can withdraw the request within seven days unless it has already been accepted.

These procedural resignation rules are different from the EOSB percentage itself. Once the employment relationship ends by resignation, Article 85 remains the provision that determines whether the worker receives zero, one-third, two-thirds or the full Article 84 award.

Who Should Not Use This Calculator?

This calculator is designed for employees covered by the general Saudi Labor Law EOSB rules. It is not intended for domestic workers and other categories excluded from the general Labor Law under Article 7, because separate regulations can apply. It also cannot decide disputed facts, the validity of an Article 80 dismissal, whether Article 81 conditions are proven, or which variable wage components should legally be included.

Methodology and Legal Basis

The calculator is built around the current Saudi Labor Law framework and the terminology used by the Ministry of Human Resources and Social Development (HRSD/MHRSD). The main provisions relevant to this page are Articles 2, 54, 74, 79 bis, 80, 81, 84, 85, 86, 87, 88 and 111.

• Article 84: core EOSB formula and proportional parts of a year.
• Article 85: resignation entitlement bands.
• Article 86: possible exclusion of agreed variable commission-like wage components.
• Article 87: specified full-award exceptions.
• Article 80: serious dismissal grounds that can remove award/notice/compensation.
• Article 81: worker may leave without notice while retaining statutory rights in specified cases.
• Article 54: no EOSB when a contract ends during probation.
• Article 88: final settlement deadlines.
• Article 111: payment for accrued unused annual leave on leaving work.

End of Service Calculator Saudi Arabia FAQs