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Saudi Arabia end-of-service calculator

Your end-of-service award under the Saudi Labor Law, whether the contract ends or you resign. There is no income tax on salaries in Saudi Arabia.

Count service by

Usually the basic wage plus fixed allowances such as housing and transport. Check your contract.

Unpaid absence is not counted as service.

How it is worked out

Part years count pro rata, so an extra six months adds half a year’s entitlement. Your numbers, step by step.

Is it taxed?

Saudi Arabia has no personal income tax on salaries, and the award is paid without tax. It is owed to Saudi and foreign workers alike, on top of any GOSI social insurance.

Rules and sources

  • Ministry of Human Resources and Social Development: Labor Law (Royal Decree M/51), English text
  • Article 84: half a month’s wage for each of the first five years and a month’s wage for each year after, on the last wage, part years pro rata. Article 85: on resignation, nothing under two years, a third from two to five years, two thirds above five and under ten, all from ten. Article 87: full award for force majeure and, for female workers, within six months of marriage or three months of giving birth.

Questions people ask

How much do I get if I resign?

Nothing under two years of service, a third of the award from two to five years, two thirds above five and under ten years, and the full award from ten years (Article 85). If your employer ends the contract, or a fixed-term contract simply expires, you get the full award whatever your length of service.

Which wage is used?

Your last wage. The law’s “actual wage” includes the basic wage plus regular allowances such as housing and transport, so most employers use that. Commissions and one-off bonuses are usually left out.

When is the full award paid even though I left?

Article 87 gives the full award if you leave because of force majeure, or if a female worker ends her contract within six months of marriage or three months of giving birth. Leaving under Article 81, for example when the employer fails its obligations, also keeps your full rights.