Saudi Arabia Gratuity Calculator 2026
Calculate your end-of-service benefit under Saudi Labour Law — updated for the February 2025 amendments.
End-of-service benefit (مكافأة نهاية الخدمة), or EOSB, is what your employer owes you when your employment in Saudi Arabia ends. This free Saudi Arabia gratuity calculator applies Articles 84 to 88 of the Saudi Labour Law to your actual wage and service dates, and shows a year-by-year breakdown you can download.
Required Inputs
Advanced (Optional)
Saudi Arabia Gratuity Result
| Year | Period From | Period To | Days | Gratuity |
|---|---|---|---|---|
| No data | ||||
| Net Gratuity: | SAR 0.00 | |||
Estimate only — your final settlement may differ. See how the calculation works below.
How to Use This Calculator
Saudi EOSB depends on three things: your wage, your service period, and how your employment ended. Getting any one of them wrong changes the result substantially.
Joining date
Your first working day. Probation counts towards your service. Training and apprenticeship periods do not.
Last working date
Your final day of service, including any notice period you serve.
Actual wage
Enter your last monthly actual wage — not just your basic salary.
Under Article 2 of the Saudi Labour Law, wage means basic salary plus fixed contractual increments such as housing allowance, transport allowance and other regular fixed payments.
Article 86 allows employers and employees to agree in writing that variable components — commission, sales percentages, and similar payments that rise and fall by nature — are excluded from the EOSB base. Check your contract for such a clause.
Include: basic salary, fixed housing allowance, fixed transport allowance, other fixed contractual allowances
Exclude: bonuses, overtime, sales commission, performance incentives
Contract type
Fixed-term or indefinite. This matters more than it used to — since February 2025, contract type determines whether the Article 85 reduction applies at all. See the resignation section below.
Separation method
Termination covers both termination by your employer and the natural completion of a fixed-term contract. Either way, the full award is payable.
Resignation applies where you ended the employment yourself. Combined with your contract type, this determines whether the Article 85 reduction applies.
If your situation falls under Article 87 — force majeure, or a female employee leaving within six months of marriage or three months of childbirth — select Termination, because you are entitled to the full award regardless of your service length.
Working in another Gulf country?
Gratuity rules differ across the GCC. Use the calculator built for your country:
In short: EOSB in KSA is half a month’s wage for each of your first five years, then one full month’s wage for every year after that. There is no maximum cap. Resignation can reduce the amount under Article 85 — but since February 2025, that reduction applies only to fixed-term contracts.
How to Calculate End-of-Service Benefits in Saudi Arabia (Article 84)
Step 1 — Take your last actual wage
The calculation uses your final monthly wage, not an average of your career.
Step 2 — Apply the accrual rate
| Service period | Award per year |
|---|---|
| First 5 years | Half a month’s wage for each year |
| Year 6 onwards | One full month’s wage for each year |
Step 3 — Add the part year
Article 84 entitles you to an award for portions of a year in proportion to the time worked. Five years and six months is not five years — the extra six months is paid at half the annual rate.
There is no maximum cap. Unlike the UAE, which caps gratuity at two years’ basic salary, Saudi Labour Law places no ceiling on the end-of-service award. A long-serving employee on a high wage can accrue a very large entitlement.
Probation counts. Your service runs from your first working day, including the probation period. Training and apprenticeship periods are excluded.
Does Resigning Reduce Your Saudi EOSB? (Article 85 and the 2025 Amendment)
This is the most consequential question on the page, and the answer changed in 2025.
The traditional Article 85 position
Under Article 85, an employee who resigns receives a reduced award:
| Completed service | Entitlement on resignation |
|---|---|
| Less than 2 years | No award |
| 2 to less than 5 years | One third of the full award |
| 5 to less than 10 years | Two thirds of the full award |
| 10 years or more | Full award |
What changed in February 2025
Royal Decree M/44, in force since 19 February 2025, introduced a statutory definition of resignation into the Labour Law for the first time — and that definition applies only to fixed-term contracts.
The consequence, as set out by leading employment law practices in the Kingdom, is that the reduced
Article 85 calculation now applies only where an employee lawfully ends a fixed-term contract by resignation that the employer has accepted.
Where an employee on an indefinite-term contract ends the relationship by giving notice under Article 75, that is a termination rather than a resignation as newly defined — and the Article 85 reduction does not apply to it.
In practice this means:
| Contract type | Employee ends employment | Article 85 reduction |
|---|---|---|
| Fixed-term | Resignation (accepted by employer) | Applies |
| Indefinite | Termination on notice by employee | Does not apply |
This is a recent change and most online calculators have not caught up with it. If your employer has applied a one-third or two-thirds reduction to an indefinite-term contract, it is worth asking which provision they relied on.
The new resignation procedure
The 2025 amendments also set out how resignation works on a fixed-term contract. The employer has 30 days to respond, after which the resignation is deemed accepted. The employer may postpone acceptance for up to 60 days where business interests require it, with a written explanation. You may withdraw your resignation within 7 days, provided it has not already been accepted.
When You Receive the Full Award Regardless (Article 87)
Article 87 overrides the Article 85 reduction entirely in three situations:
Force majeure. If you leave work due to circumstances beyond your control, you receive the full award regardless of length of service.
A female employee who resigns within six months of her marriage receives the full award.
A female employee who resigns within three months of giving birth receives the full award.
These provisions apply even where the Article 85 tiers would otherwise reduce the amount to one third or two thirds. Very few calculators account for them — select Termination above to see your full entitlement if one of these applies to you.
Who Qualifies for Saudi EOSB
The Labour Law applies equally to Saudi nationals and expatriate employees — the Article 84 formula and Article 85 provisions are identical for both.
On termination by the employer or on completion of a fixed-term contract, you are entitled to the award for your full service period.
On resignation from a fixed-term contract, the Article 85 tiers apply, with no award below two years of service.
The same Labour Law applies across the Kingdom — Riyadh, Jeddah, Dammam, Khobar, Mecca and Medina. Unlike the UAE, Saudi Arabia has no free zones with separate end-of-service rules, so where you work does not change the calculation.
Your award is separate from GOSI. Social insurance contributions are a different system entirely and do not reduce or replace what your employer owes you under Article 84.
Domestic workers — drivers, nannies, housekeepers — are covered by the separate Regulations for Domestic Workers rather than the main Labour Law, and their entitlements are calculated differently.
When EOSB Can Be Lost (Article 80) and Protected (Article 81)
Article 80 lists nine specific acts of serious misconduct that allow an employer to terminate an employee without award, notice or indemnity. These include prolonged unexplained absence — more than 30 days in total, or more than 15 consecutive days.
Article 80 is not a general discretion. The employer must give you an opportunity to explain or defend yourself before terminating, and written warnings are required.
Article 81 works the other way. It allows you to leave immediately, without notice, and keep all your statutory rights including the full EOSB, where the employer has failed to meet essential contractual or legal obligations towards you.
If you are leaving because of something your employer did, Article 81 may matter more to your settlement than anything else on this page.
Termination vs Resignation — Side by Side
On a wage of SAR 10,000 with 7 years of service, under a fixed-term contract:
| Termination by employer | Resignation | |
|---|---|---|
| First 5 years | SAR 25,000 | SAR 25,000 |
| Years 6–7 | SAR 20,000 | SAR 20,000 |
| Full award | SAR 45,000 | SAR 45,000 |
| Article 85 applied | — | Two thirds |
| Payable | SAR 45,000 | SAR 30,000 |
The gap is SAR 15,000 on identical service. This is why the separation method and contract type fields matter more than any other input.
Saudi Gratuity Calculation Examples
SAR 10,000 wage · 3 years · resignation from a fixed-term contract
Full award: 3 × ½ × 10,000 = SAR 15,000
Article 85 (2 to 5 years): one third
Payable: SAR 5,000
SAR 10,000 wage · 3 years · indefinite contract, employee gives notice
Full award: 3 × ½ × 10,000 = SAR 15,000
Article 85 does not apply to indefinite contracts under the 2025 amendments
Payable: SAR 15,000
SAR 10,000 wage · 6 years · termination by employer
First 5 years: 5 × ½ × 10,000 = SAR 25,000
Year 6: 1 × 10,000 = SAR 10,000
Payable: SAR 35,000
SAR 8,000 wage · 5 years · contract completion
5 × ½ × 8,000 = SAR 20,000
SAR 9,000 wage · 5 years 6 months · termination
First 5 years: SAR 22,500
Additional 6 months: 6 ÷ 12 × 9,000 = SAR 4,500
Payable: SAR 27,000
SAR 12,000 wage · 12 years · resignation
First 5 years: SAR 30,000
Years 6–12: 7 × 12,000 = SAR 84,000
Ten or more years of service means the full award is payable
Payable: SAR 114,000
Actual wage in practice
Basic SAR 8,000 + fixed housing SAR 1,500 + fixed transport SAR 500 = actual wage SAR 10,000
7 years, termination: 25,000 + 20,000 = SAR 45,000
Using only the basic salary of SAR 8,000 would have produced SAR 36,000 — a shortfall of SAR 9,000.
When Must Your Employer Pay? (Article 88)
Within one week of the end of the contractual relationship, where the employer ended the contract.
Within two weeks, where you ended the contract.
Your employer may deduct any work-related debt you owe from your entitlements before paying the balance.
Settle your EOSB before your final exit is processed. Once you have left the Kingdom, pursuing an unpaid settlement becomes considerably harder. If payment is not made within the Article 88 periods, raise it through the labour dispute process before you go.
EOSB Is Not the Same as Article 77 Compensation
If your employer terminated you without a valid reason, Article 77 may entitle you to compensation in addition to your end-of-service award.
These are two separate entitlements. Employees frequently accept an EOSB figure believing it settles everything, when an unlawful termination may carry a further claim. If you were dismissed without a stated valid reason, take advice before signing a settlement.
Common Saudi Gratuity Calculation Mistakes
Using basic salary instead of actual wage. The most expensive error, and one that several online calculators repeat. Saudi EOSB is calculated on the wage as defined in Article 2 — basic plus fixed allowances. On a package where allowances are 20% of the total, using basic alone costs you a fifth of your award.
Assuming the resignation reduction always applies. Since February 2025 it applies only to fixed-term contracts. Check which type of contract you are on before accepting a reduced figure.
Rounding partial years down. Article 84 requires part years to be paid proportionally. Five years and eight months is not five years.
Forgetting Article 87. Force majeure, and resignation within six months of marriage or three months of childbirth, override the Article 85 reduction completely.
Ignoring Article 77. An unlawful termination may carry compensation separate from EOSB.
Assuming there is a cap. There is no maximum on Saudi EOSB. If someone tells you your award is capped, ask which article they are relying on.
Confusing EOSB with GOSI. Your social insurance record and your end-of-service award are unrelated.
Why Your Employer’s Figure Might Differ
They used basic salary rather than actual wage. Ask which figure they applied and on what basis.
A commission exclusion clause applies. Article 86 permits an agreed exclusion of variable pay components. Check your contract.
They applied Article 85 to an indefinite contract. Worth questioning after the 2025 amendments.
They treated your service as starting later. Probation counts; training does not. Renewals of a fixed-term contract run continuously.
A work-related debt was deducted. Article 88 permits this, but you are entitled to see it itemised.
If Your Employer Will Not Pay
1. Ask for the settlement in writing. Request an itemised statement showing the wage used, service dates, the article applied and every deduction.
2. Put your objection in writing. State your own calculation, the article you rely on, and the Article 88 deadline.
3. Gather your documents. Employment contract and renewals, Qiwa contract record, recent payslips, Iqama, resignation or termination letter, and the settlement statement.
4. File through the MHRSD friendly settlement process. Saudi labour disputes begin with an amicable settlement stage before the Labour Court, initiated through the Ministry of Human Resources and Social Development.
5. Escalate to the Labour Court if the friendly settlement stage does not resolve the matter.
Cross-check your figure against the official MHRSD end-of-service calculator and the Qiwa calculator before you file. Two official outputs attached to a written request carry more weight than an assertion.
Saudi Arabia Gratuity Calculator FAQs
How is end-of-service benefit calculated in Saudi Arabia?
Half a month’s wage for each of the first five years of service, then one full month’s wage for each year after that, based on your last actual wage. Part years are paid proportionally.
Is Saudi EOSB calculated on basic salary or total salary?
On the actual wage, which under Article 2 includes basic salary plus fixed contractual allowances such as housing and transport. Bonuses, overtime and commission are excluded.
Do I get end-of-service benefit if I resign?
On a fixed-term contract, Article 85 applies: nothing under two years, one third from two to five years, two thirds from five to ten, and the full award at ten years or more. Since February 2025, that reduction does not apply to indefinite-term contracts.
Does contract type affect my end-of-service benefit?
Yes, since the February 2025 amendments. The Article 85 resignation reduction applies to fixed-term contracts only. On an indefinite contract, an employee ending the relationship on notice receives the full award.
Is there a maximum limit on Saudi gratuity?
No. Saudi Labour Law sets no cap on the end-of-service award.
How long does my employer have to pay?
One week if the employer ended the contract, two weeks if you ended it, under Article 88.
Does probation count towards my service?
Yes. Training and apprenticeship periods do not.
Can I lose my end-of-service benefit?
Only under the nine grounds of serious misconduct listed in Article 80, and only after the employer has given you an opportunity to respond.
Are female employees treated differently?
Article 87 entitles a female employee to the full award if she ends her contract within six months of marriage or three months of giving birth, regardless of the Article 85 tiers.
What happens if I leave for reasons beyond my control?
Article 87 entitles you to the full award where you leave due to force majeure.
Is EOSB the same for Saudi nationals and expatriates?
Yes. Articles 84 and 85 apply identically to both.
Does GOSI affect my end-of-service benefit?
No. GOSI social insurance is a separate system and does not reduce your Article 84 entitlement.
What is the difference between EOSB and Article 77 compensation?
EOSB is your service award. Article 77 compensation is a separate entitlement where an employer terminated you without a valid reason.
Know Your Number Before You Sign
Your employer’s settlement statement is much easier to question when you already have your own figure. It takes about a minute.
Last updated: August 2026
Sources: Saudi Labour Law (Royal Decree M/51) Articles 2, 77, 80, 81, 84, 85, 86, 87 and 88 · Royal Decree M/44 of 2024 and Ministerial Decision No. 115921/1446, in force 19 February 2025 · Ministry of Human Resources and Social Development (hrsd.gov.sa)
Written and maintained by Farhan — About
Disclaimer: This calculator provides an estimate for planning purposes and is not legal advice. The application of the 2025 amendments to individual cases can depend on contract wording and Qiwa records. For a binding determination, contact MHRSD or a Saudi-licensed legal professional.