SAR 10000 Salary Gratuity in Saudi Arabia (2026): Does Resigning Still Cut It?

Your SAR 10000 salary gratuity is SAR 25,000 after five years and SAR 75,000 after ten — if your employer ends the contract.

If you resign, the answer used to be simple: you’d lose a chunk of it. Since February 2025 it depends entirely on which contract you signed. On an indefinite contract you now keep the full award. On a fixed-term one, the old reduction still applies.

At this salary that distinction is worth SAR 8,333 at five years, and considerably more later.

Quick Answer

Half a month’s wage: SAR 10,000 ÷ 2 = SAR 5,000

Half a month’s wage for each of your first five years, then a full month for each year after. No cap.

What Changed in February 2025

Royal Decree M/44, in force since 19 February 2025, introduced a statutory definition of resignation into the Saudi 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: 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 reduction doesn’t apply.

Most Saudi gratuity calculators haven’t caught up with this. If your employer applied a reduction to an indefinite contract, ask which provision they relied on.

What It’s Worth on SAR 10,000

The Article 85 scale, where it applies:

At ten years the two converge — the tiers reach the full award anyway.

The three-year point is the sharpest. On a fixed-term contract, resigning at one year and eleven months pays nothing. One month later it pays one third.

The Resignation Procedure

The 2025 amendments also set out how resignation works on a fixed-term contract, and the timings matter if you’re planning an exit.

• Your employer has 30 days to respond to your resignation, after which it’s deemed accepted
• They 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 hasn’t already been accepted

That last point is worth knowing. If you resign and then reconsider, you have a short window.

When You Get the Full Award Regardless

Article 87 overrides the Article 85 reduction entirely:

• Force majeure — leaving due to circumstances beyond your control
• A female employee resigning within six months of her marriage
• A female employee resigning within three months of giving birth

On SAR 10,000 with five years of service on a fixed-term contract, that’s the difference between SAR 16,667 and the full SAR 25,000.

Article 81 works similarly. It lets you leave immediately, without notice, and keep all your statutory rights including the full award, where the employer has failed to meet essential obligations towards you.

Which Wage Figure Applies

Your award runs on your actual wage — basic salary plus fixed allowances — not basic alone.

On a package of SAR 10,000 basic plus SAR 2,500 housing and SAR 1,000 transport, your actual wage is SAR 13,500, and ten years pays SAR 101,250 rather than SAR 75,000.

Article 86 permits an agreed written exclusion of variable pay such as commission, but not your fixed housing allowance. Our SAR 5,000 breakdown explains the wage definition in full.

Part Years Count in Proportion

Probation counts. Training and apprenticeship don’t.

When You Should Be Paid

Under Article 88: within one week if the employer ended the contract, within two weeks if you did.

Your employer may deduct legitimate work-related debt, itemised.

If they won’t pay: ask for the settlement in writing showing the wage used, service dates, the article applied and every deduction. Then file through the MHRSD friendly settlement process, which precedes the Labour Court. Cross-check your figure against the official MHRSD calculator before you file — an official output attached to a written request carries weight.

Check Your Own Position

Enter your actual wage, dates, contract type and separation method in the Saudi Arabia Gratuity Calculator. Change the contract type and run it again — on a resignation, that one field can change your figure by a third.

[Calculate My EOSB]

FAQs

How much gratuity on SAR 10,000 after 5 years?

SAR 25,000 on termination or on resignation from an indefinite contract. SAR 16,667 on resignation from a fixed-term contract.

After 10 years?

SAR 75,000 — the tiers reach the full award at ten years regardless of contract type.

Did the resignation rule change in 2025?

Yes. Royal Decree M/44, in force since 19 February 2025, defined resignation for fixed-term contracts only. The Article 85 reduction no longer applies to indefinite contracts.

How do I know which contract I’m on?

Check your Qiwa contract record and your signed employment agreement. If it has a fixed end date, it’s fixed-term.

How long does my employer have to accept my resignation?

30 days, after which it’s deemed accepted. They may postpone up to 60 days with written justification.

Can I withdraw my resignation?

Within 7 days, provided it hasn’t already been accepted.

Is there a maximum award?

No. Saudi Arabia sets no cap.

Do allowances count?

Yes. The award runs on actual wage — basic plus fixed allowances.

Is EOSB taxable in Saudi Arabia?

There is no personal income tax on employment income.

Last updated: September 2026 · Based on: Saudi Labour Law (Royal Decree M/51), Articles 75, 81, 84, 85, 86, 87 and 88 · Royal Decree M/44 of 2024, in force 19 February 2025
Written by Farhan — About