SAR 15000 Salary Gratuity in Saudi Arabia (2026): The Ten-Year Line Is Worth SAR 38,000
Your SAR 15000 salary gratuity is SAR 37,500 after five years and SAR 112,500 after ten.
If you’re on a fixed-term contract and thinking about resigning, there’s a threshold at this wage level that dwarfs every other consideration. Resigning at nine years and eleven months pays SAR 74,167. One month later it pays SAR 112,500.
That’s SAR 38,333 for thirty days of work — roughly two and a half years of salary.
Quick Answer — Full Award
Half a month’s wage: SAR 15,000 ÷ 2 = SAR 7,500
| Years of service | Full award |
|---|---|
| 1 year | SAR 7,500 |
| 2 years | SAR 15,000 |
| 3 years | SAR 22,500 |
| 5 years | SAR 37,500 |
| 6 years | SAR 52,500 |
| 7 years | SAR 67,500 |
| 8 years | SAR 82,500 |
| 10 years | SAR 112,500 |
| 15 years | SAR 187,500 |
| 20 years | SAR 262,500 |
Half a month’s wage for each of your first five years, then a full month for each year after. No maximum cap.
Why Ten Years Is the Sharpest Line in Saudi Labour Law
Article 85 reduces the award for employees who resign from a fixed-term contract — but the reduction disappears entirely at ten years.
| Completed service | Proportion paid |
|---|---|
| Under 2 years | Nothing |
| 2 to under 5 years | One third |
| 5 to under 10 years | Two thirds |
| 10 years or more | Full award |
The jump from two thirds to full happens in a single day. And because your accrual is also at its highest by then — a full month per year rather than half — the amount at stake is large.
On SAR 15,000:
| Resigning at | Full award | Article 85 applied | You receive |
|---|---|---|---|
| 9 years 11 months | SAR 111,250 | Two thirds | SAR 74,167 |
| 10 years | SAR 112,500 | None | SAR 112,500 |
SAR 38,333 of difference. If you’re anywhere within a year of that mark on a fixed-term contract, price both dates before you resign.
This Only Applies to Fixed-Term Contracts
Since 19 February 2025, Royal Decree M/44 defined resignation in the Labour Law for the first time — and that definition covers fixed-term contracts only.
On an indefinite contract, an employee ending the relationship on notice under Article 75 receives the full award at every service length. There is no ten-year line to wait for, because there’s no reduction to escape.
| Contract type | Resigning at 9 yrs 11 mo |
|---|---|
| Fixed-term | SAR 74,167 |
| Indefinite | SAR 111,250 |
Check your Qiwa contract record before you plan anything. At senior levels expatriate employees are commonly on fixed-term contracts, but not always — and the difference here is worth more than most annual bonuses.
Our SAR 10,000 breakdown covers the 2025 amendment in detail.
Should You Wait? Do This Calculation
Waiting only makes sense in specific circumstances. Here’s how to work out whether yours is one of them.
If you’re on a fixed-term contract approaching ten years: almost certainly yes. On SAR 15,000, waiting six months to cross that line gains you around SAR 38,000. Very few salary increases beat that.
If you’re on a fixed-term contract at four and a half years: the gain from crossing five is smaller. Moving from one third to two thirds on SAR 37,500 is worth about SAR 12,500 — meaningful, but a better offer elsewhere may beat it.
If you’re on an indefinite contract: the thresholds don’t apply to you at all. Your award grows steadily, and there’s no cliff to time an exit around.
If your employer is terminating you: you receive the full award regardless of service length. Nothing to time.
Your Allowances Count
The award runs on your wage as defined in Article 2 — basic salary plus fixed allowances, not basic alone.
On a package of SAR 15,000 basic plus SAR 3,750 housing and SAR 1,500 transport, your wage is SAR 20,250:
| Basis used | 10 years |
|---|---|
| Basic only (SAR 15,000) | SAR 112,500 |
| Wage (SAR 20,250) | SAR 151,875 |
SAR 39,375 of difference at ten years, from the same package.
Article 86 permits an agreed written exclusion of variable pay such as commission and sales percentages — not your fixed housing allowance. Our SAR 5,000 breakdown explains the wage definition in full.
No Cap, Unlike the UAE
Saudi Arabia sets no maximum on the end-of-service award.
This matters at senior wage levels and long service, because it’s a genuine difference from neighbouring jurisdictions. The UAE caps gratuity at two years’ basic salary, which on an equivalent wage would bite at around 25 years.
In Saudi Arabia, twenty years on SAR 15,000 pays SAR 262,500, and it keeps accruing at a full month per year beyond that.
Part Years Count in Proportion
| Service | Full award |
|---|---|
| 1 year 6 months | SAR 11,250 |
| 3 years 6 months | SAR 26,250 |
| 5 years 6 months | SAR 45,000 |
| 7 years 4 months | SAR 72,500 |
| 9 years 11 months | SAR 111,250 |
| 12 years 9 months | SAR 153,750 |
Probation counts. Training and apprenticeship don’t.
When the Reduction Never Applies
Article 87 overrides Article 85 entirely:
- Leaving due to force majeure
- A female employee resigning within six months of her marriage
- A female employee resigning within three months of giving birth
Article 81 lets you leave immediately without notice, keeping full rights, where the employer failed essential obligations towards you.
At this wage level, either provision is worth checking before accepting a reduced settlement.
When You Should Be Paid
Under Article 88: within one week if the employer ended the contract, within two weeks if you did.
At this level the settlement usually includes several lines beyond the award — leave encashment, notice pay, unpaid bonus or commission, and a repatriation ticket. Ask for the whole thing itemised, and don’t sign a release before reconciling every line.
Settle before your final exit is processed.
Run Both Dates
Enter your wage, contract type and two candidate exit dates in the Saudi Arabia Gratuity Calculator. On a fixed-term contract near a threshold, changing the date by one month can change the figure by tens of thousands.
FAQs
How much gratuity on SAR 15,000 after 10 years?
SAR 112,500 on termination, or on resignation from an indefinite contract. On a fixed-term resignation at ten years the full award is also payable, because Article 85 stops reducing at that point.
After 5 years?
SAR 37,500 full, or SAR 25,000 on a fixed-term resignation.
Why is ten years so significant?
Article 85 pays two thirds between five and ten years and the full award from ten. On SAR 15,000 that step is worth around SAR 38,000.
Does this apply if I’m on an indefinite contract?
No. Since February 2025 the reduction applies to fixed-term contracts only, so the full award is payable at every service length.
How do I confirm my contract type?
Your Qiwa contract record and your signed employment agreement.
Is there a maximum award in Saudi Arabia?
No. Unlike the UAE, there’s no cap.
Do allowances count?
Yes. The award runs on your wage — basic plus fixed allowances.
Is EOSB taxable?
There’s no personal income tax on employment income in Saudi Arabia.
Last updated: September 2026 · Based on: Saudi Labour Law (Royal Decree M/51), Articles 2, 75, 81, 84, 85, 86, 87 and 88 · Royal Decree M/44 of 2024
Written by Farhan — About
Different wage? See SAR 3,000, SAR 5,000 and SAR 10,000.
2 Comments