Free calculator
End-of-service award calculator under the Saudi Labor Law
Whether you need your own entitlement or your company's liability: enter the wage, service period and end reason, and the result appears instantly, with every step of the math shown.
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Frequently Asked Questions
The rule in the Saudi Labor Law (Article 84): half a month's wage for each of the first five years, and a full month's wage for each following year, based on the last wage, with fractions of a year counted pro-rata.
Example: an employee whose last wage is SAR 10,000 serves 7 years and is terminated: the award is 5 × 5,000 = 25,000 for the first five years plus 2 × 10,000 = 20,000 for the next two, totalling SAR 45,000. Had they resigned after the same period, Article 85 grants two thirds of that amount (SAR 30,000).
- The last wage includes regular fixed allowances (housing, transport), not basic salary alone.
- Unpaid leave comes off the service period only for days beyond 20 in a work year, unless agreed otherwise (Articles 2 and 116).
- The untaken annual-leave payout is a separate right, always paid in full, unaffected by the resignation scale.
Built by The Right Way team on official sources
The Right Way's consultants built this tool on official and government regulations and guides, and we update it whenever they change. The figures are indicative, and government fees vary with your activity.
We relied on regulations and guides issued by:
- Bureau of Experts at the Council of Ministers
- Ministry of Human Resources & Social Development
The document behind each figure, with its edition, date and link, is available to members of The Right Way. See the membership
An independent tool by The Right Way, not affiliated with or endorsed by any government entity. For the officially certified figure, use the ministry's calculator on the Labor Education Portal.
Calculate officially on the ministry's toolThis tool is free and for guidance only. Its results are estimates based on general benchmark figures that may not apply to your case; they are not certified advice or a binding commitment from The Right Way, and should not be relied upon on their own.
To calculate and process end-of-service entitlements accurately and in line with regulations, see the HR Outsourcing packages and their published prices.
To the extent permitted by law, The Right Way is not responsible for any decision you make based on them, and use of this tool is subject to our Terms of Use.
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