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Saudi Labour Law

Saudi Arabia End of Service Calculator 2026

Calculate your end of service benefit (مكافأة نهاية الخدمة) under Saudi Labour Law Article 84. Works for both resignations and employer-terminated contracts.

Saudi End of Service Calculator 2026
Use basic salary only — exclude housing, transport, and other allowances
Disclaimer: This calculator provides an estimate based on standard labour law formulas. Actual entitlement may vary based on employment contract terms, partial year rounding, and specific circumstances. Consult your HR department or a legal advisor for the precise figure.

Saudi End of Service — Labour Law Formula

Under Saudi Labour Law Article 84, the end of service benefit is calculated based on your final basic monthly salary multiplied by years of service. The rate varies depending on your reason for leaving:

ScenarioYearsEntitlement
Terminated by employerAny lengthFull: 1 month per year
ResignedLess than 2 yearsNo entitlement
Resigned2–less than 5 years1/3 of full entitlement
Resigned5–less than 10 years2/3 of full entitlement
Resigned10 years or moreFull entitlement

The calculation basis is your last basic salary. Housing allowance, transport allowance, and other benefits are not included. If your salary increased over your employment, the calculation uses your final salary as of your last working day.

Saudi End of Service Examples

Basic Salary (SAR)YearsLeft (Reason)End of Service
SAR 5,0003 yearsTerminatedSAR 15,000
SAR 5,0003 yearsResignedSAR 5,000 (1/3)
SAR 5,0007 yearsResignedSAR 23,333 (2/3)
SAR 8,00010 yearsResignedSAR 80,000 (full)
SAR 8,00010 yearsTerminatedSAR 80,000 (full)

Key Rules and Exceptions

Notice period: If you resign without serving the notice period specified in your contract, the employer can deduct equivalent salary. This does not affect the end of service calculation — it is a separate deduction.

Serious misconduct termination: Article 80 of the Saudi Labour Law allows termination without end of service in specific cases of serious misconduct (gross insubordination, assault, fraud). Normal terminations do not trigger this exception.

Payment timing: Saudi law requires end of service payment within the last day of employment or shortly after. Delays can be reported to the Ministry of Human Resources (HRSD).

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Frequently Asked Questions

How is end of service calculated in Saudi Arabia?
1 month basic salary per year of service if terminated. If resigned: 1/3 for 2–5 years, 2/3 for 5–10 years, full for 10+ years. Minimum 2 years service required to qualify on resignation.
Is end of service applicable if I resign?
Yes, but only after 2 complete years of service, and at a reduced rate. Less than 2 years: no entitlement. 2–5 years: 1/3 of full amount. 5–10 years: 2/3. 10+ years: full amount.
What is included in basic salary for Saudi end of service?
Only the basic salary component. Housing allowance, transport allowance, and other benefits are excluded. Use the basic salary figure from your employment contract or payslip.
How long does Saudi end of service payment take?
Saudi law requires payment on your last working day. In practice, many employers process it within a few days. If not paid within a reasonable period, you can file a complaint with the Ministry of Human Resources (HRSD).
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