First: the full award (Article 84)
The end-of-service award in Saudi Arabia is half a month's wage for each of the first five years and one month's wage for each year after that, calculated on your last wage. Part of a year counts in proportion.
- 1Take your last monthly wage
- 2Half a month for each of years 1-5
- 3A full month for each year after 5
- 4If you resigned: apply the Article 85 share
Then: what you keep when you resign (Article 85)
If the employee resigns, only part of the award is paid:
| Service when you resign | Share of the award |
|---|---|
| Less than 2 years | Nothing |
| 2 to 5 years | One third (1/3) |
| 5 to 10 years | Two thirds (2/3) |
| 10 years or more | All of it |
If the employer ends the contract, or the fixed-term contract simply ends, the full award is paid.
Example: monthly wage SAR 6,000
The full award grows like this - and this is what a resigning employee actually receives:
| Years | Full award (SAR) | If you resign (SAR) |
|---|---|---|
| 1 | 3,000 | 0 |
| 3 | 9,000 | 3,000 |
| 4 | 12,000 | 4,000 |
| 7 | 27,000 | 18,000 |
| 10 | 45,000 | 45,000 |
The chart shows why the 5-year and 10-year marks matter so much: resigning at 4 years gives SAR 4,000, while at 7 years it is already SAR 18,000, and from 10 years nothing is cut.
Thinking of resigning close to the 2, 5 or 10-year mark? A few more weeks of service can change your share a lot - check the exact date first.
When you get the full award even though you leave (Article 87)
- You leave because of force majeure beyond your control.
- A female employee ends her contract within 6 months of marriage or within 3 months of giving birth.
Which wage is used?
The Labor Law uses the wage, which can include regular allowances such as housing, not only the basic salary. Commissions and similar variable pay can be left out if the contract says so. Use the wage your contract names for the end-of-service award.
When is the award lost completely?
An employee dismissed for one of the serious reasons listed in Article 80 does not receive the award.
Work out your own end of service →
Sources
- Saudi Labor Law, Articles 84, 85 and 87, as summarised by the Ministry of Human Resources (HRSD).
- This guide is general information, checked in October 2026. Your employer, the ministry or a labour court gives the final figure.