The end-of-service award is first calculated as if the employer had terminated the contract (Article 84): half a month's wage for each of the first five years and a full month's wage for each year after that, pro-rated for partial years. Article 85 then applies a resignation reduction: nothing if service is under 2 years, one-third if service is between 2 and 5 years, two-thirds if between 5 and 10 years, and the full amount from 10 years onward. Example: an employee with 4 years of service and a 10,000 SAR wage who resigns has a gross award of about 20,000 SAR and receives one-third of it, roughly 6,667 SAR.

Generally yes. The Saudi Labor Law defines wage as the basic pay plus all recurring increments and allowances due under the contract, such as fixed housing and transport allowances, and the award is based on the last wage (Articles 2 and 84). Irregular or discretionary payments, such as one-off bonuses or overtime, are usually excluded. That is why this calculator asks for the basic wage plus fixed allowances. Contract terms can affect the result, so confirm with your HR department or a labor consultant.

It depends on how the contract ends. If the employer terminates the contract, the worker is still entitled to an award under Article 84, pro-rated for the actual period of service, even if it is under 2 years. If the worker resigns before completing 2 years, Article 85 gives no end-of-service award (a 100% deduction). In certain cases, such as leaving for one of the reasons listed in Article 81, the full award may still be due, so check your specific situation.

The rate doubles for the years beyond five. The first five years earn half a month's wage per year, and every year after that earns a full month's wage. For a worker with 8 years of service on a 10,000 SAR wage, that is 25,000 SAR for the first five years plus 30,000 SAR for the next three, a gross award of 55,000 SAR. For resignations the deduction also drops: two-thirds is payable between 5 and 10 years, and the full award from 10 years.

The law requires partial years to be paid proportionally, so this calculator counts the exact number of calendar days between the start and end dates and divides by a 365-day year. It does not round to flat months. This gives a precise figure for any length of service, for example 5 years and 3 months. The result is an estimate, and some employers or contracts may treat fractions differently, so confirm with your employer or the labor office.