End-of-Service Calculator — Saudi Arabia
Your estimated end-of-service benefit
The statutory cap applies to this amount.
Check this figure on WhatsApp →
One question before we hand you over — is this for you, or for people you employ?
Then the figure above is yours to keep — you don't need us in the middle. Take it with you, and read the rule it comes from so you can hold your ground on it.
Got it — we'll call you on that number. If it's easier, message us on WhatsApp instead.
Opens WhatsApp with your estimate — nothing is sent until you press send.
See what's inside →
Page 1 is the estimate you already have. Paying adds two more pages:
- 2
- Both statutory outcomes
- Why a real settlement can differ
- Ask for these in writing
- 3
- The statute
- The same job, longer
- What changes this figure
Including questions like:
- The exact monthly figure used as the calculation base, and whether it is basic or full wage.
- Your recorded start date and last working day.
…and 4 more, each one a fact your employer already holds.
Statutory rules current as of August 2026. This is an indicative estimate, not legal advice. Everything is computed on your device — your salary is never sent or stored.
How the Saudi Arabia calculation works
- Enter your monthly salary — for this country that means your full monthly wage (basic + regular allowances).
- Enter your total years of service (partial years count proportionally).
- Choose how the employment ends — resignation can reduce the entitlement in some countries.
- Read your estimate with its legal basis, and talk to us on WhatsApp if you want it checked.
The law: Saudi Labour Law (Royal Decree No. M/51)
- First 5 years: half a month's wage per year
- After 5 years: 1 month's wage per year
- Partial years are calculated proportionally
- Resignation under 2 years: no award
- Resignation 2–5 years: one-third of the award
- Resignation 5–10 years: two-thirds of the award
- Resignation 10+ years: full award
- Termination by employer: full 100% award
How the Saudi Arabia entitlement builds up
End-of-service accrues in bands: each year of service earns a fixed slice of wage, and the slice changes once you pass the statutory boundary. These are the Saudi Labour Law (Royal Decree No. M/51) figures the calculator above uses.
| Years of service | Accrues per year |
|---|---|
| Years 1–5 | 0.5 months' wage |
| Year 6 onwards | One month's wage |
| After 10 years of service | 7.5 months' wage |
There is no cap: a long career keeps accruing at the same per-year rate, so a 30-year employee's award is well above a 10-year one's.
There is no minimum qualifying period — a part-year leaver is owed a pro-rata share, not nothing.
Resigning vs being terminated in Saudi Arabia
This is the difference most people are actually searching for, and it is the input the calculator will not let you skip.
Resigning reduces the award on a sliding scale. Being terminated by the employer always pays 100%.
| How it ends | Paid |
|---|---|
| Resigning under 2 years | 0% of the award |
| Resigning at 5 years or less | 33.3% of the award |
| Resigning under 10 years | 66.7% of the award |
| Resigning at 10 years or more | The full award |
Saudi Arabia: what changes the answer
The first five years accrue half a month a year, not a full one, so the curve is deliberately back-loaded — the difference between leaving at year five and year six is larger than any other single year. The wage basis is the last monthly wage including fixed allowances. Resignation reductions apply on the Article 85 scale above, but resignations for a statutory cause, and a woman's resignation within six months of marriage or three months of childbirth, are treated as full-award cases. This estimate applies the flat scale to every resignation and does not model those exceptions.
What this estimate does not include
End-of-service is one line on a final settlement, not the whole of it. Three things are owed separately and are not in the figure above:
- Accrued but untaken annual leave, paid out at the rate your leave entitlement is calculated on.
- Notice pay, or pay in lieu of notice where the notice period was not worked.
- Any contractual enhancement above the statutory floor. The law sets a minimum; a contract or a company policy can promise more, and where it does, the higher figure is what is owed.
Worked example
For an employee with 10 years of service on a SAR 1,000.00/month salary, terminated by the employer, the end-of-service benefit is SAR 7,500.00 — computed from the same statutory engine that powers the product.
Frequently asked questions
How is end-of-service calculated in Saudi Arabia?
For an employee with 10 years of service on a SAR 1,000.00/month salary, terminated by the employer, the end-of-service benefit is SAR 7,500.00 — computed from the same statutory engine that powers the product.
What is the formula for end-of-service in Saudi Arabia?
Calculated per Saudi Labour Law (Royal Decree No. M/51). Base award = half a month's wage for each of the first 5 years + 1 month's wage per year thereafter. Resignation: no award under 2 years, ⅓ for 2–5 years, ⅔ for 5–10 years, full after 10 years.
What happens to my gratuity if I resign in Saudi Arabia?
First 5 years: half a month's wage per year · After 5 years: 1 month's wage per year · Partial years are calculated proportionally · Resignation under 2 years: no award · Resignation 2–5 years: one-third of the award · Resignation 5–10 years: two-thirds of the award · Resignation 10+ years: full award · Termination by employer: full 100% award
Is my salary stored when I use this calculator?
No. The calculation runs entirely in your browser using the same statutory engine that powers AhlanHamad payroll — your salary is never transmitted or stored.