Free calculator
End-of-service award calculator — per 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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The official sources behind this calculator
Built on Articles 84–88 of the Saudi Labor Law — verify the source yourself.
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, request HR Outsourcing, or request a quote tailored to your case.
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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How the end-of-service award is calculated
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 days do not count toward the service period.
- The untaken annual-leave payout is a separate right, always paid in full, unaffected by the resignation scale.
- Article 87 cases (force majeure; a female employee ending her contract within 6 months of marriage or 3 months of childbirth) earn the full award.
- A justified walk-out due to the employer's breach (Article 81) preserves the worker's full rights as if terminated by the employer — i.e. the full award.
- A disciplinary dismissal on an Article 80 ground (assault, forgery, prolonged absence…) forfeits the award, while the leave payout and any due wages remain the worker's right.
- Nationality (Saudi, GCC, non-Saudi) does not change the calculation. A non-Saudi resident is additionally owed a repatriation ticket under Article 40 — a right separate from the award.
End-of-service is part of the payroll file — and we run it for you
Within TRW's HR outsourcing, our team runs entitlements, payroll, wage protection and compliance — with a written financial guarantee in the contract. Leave your details and our business development team will reach out.
Frequently Asked Questions
Under the Saudi Labor Law: half a month's wage for each of the first five years, and a full month's wage for each year after that, based on the last wage, with fractions of a year counted pro-rata. Example: 7 years at SAR 10,000 = 25,000 for the first five years + 20,000 for the next two = SAR 45,000.