SAR 25000 Salary Gratuity in Saudi Arabia (2026): Your Award Is One Line in a Larger Settlement
Your SAR 25000 salary gratuity is SAR 62,500 after five years and SAR 187,500 after ten.
At this wage level, focusing only on that number is how people leave money behind. Article 88 obliges your employer to settle all your entitlements when the relationship ends, and the end-of-service award is usually the largest of several lines rather than the whole payment.
On eight years of service, the award comes to SAR 137,500. Unused annual leave alone can add another SAR 25,000 on top of it.
Quick Answer
Half a month’s wage: SAR 25,000 ÷ 2 = SAR 12,500
| Years of service | Full award |
|---|---|
| 1 year | SAR 12,500 |
| 2 years | SAR 25,000 |
| 3 years | SAR 37,500 |
| 5 years | SAR 62,500 |
| 6 years | SAR 87,500 |
| 7 years | SAR 112,500 |
| 8 years | SAR 137,500 |
| 10 years | SAR 187,500 |
| 15 years | SAR 312,500 |
| 20 years | SAR 437,500 |
Half a month’s wage for each of your first five years, then a full month for each year after.
There is no maximum cap in Saudi Arabia, unlike the UAE.
What Else Belongs in Your Settlement
Take eight years of service on SAR 25,000. Here’s what a complete settlement should contain:
| Line | Basis | Amount |
|---|---|---|
| End-of-service award | Article 84 | SAR 137,500 |
| Unused annual leave | Your daily wage rate | Up to SAR 25,000 |
| Unpaid salary to your last working day | As applicable | Varies |
| Notice pay, where notice was waived | Per contract | Varies |
| Repatriation ticket | Where the contract provides | Varies |
| Pending commission or bonus | Per contract terms | Varies |
The award is the headline figure. The rest is where settlements quietly come up short, because nobody itemises what isn’t asked about.
Unused annual leave is worth more than people expect
Saudi Labour Law entitles employees to a minimum of 21 days of paid annual leave per year, rising to not less than 30 days once you’ve completed five consecutive years with the same employer.
At eight years of service on SAR 25,000, thirty unused days is a full month’s wage — SAR 25,000.
If you’ve carried leave forward, check what balance your employer has on record and compare it against your own. Leave records are one of the more common sources of settlement disputes at senior level.
GOSI Does Not Reduce Any of This
A recurring question at this wage level, and the answer is straightforward.
The General Organization for Social Insurance operates a separate system. Contributions made to it do not reduce your Article 84 entitlement, and your employer cannot offset one against the other.
If you’re a Saudi national, GOSI covers pension and related benefits alongside your award. If you’re an expatriate employee, your GOSI coverage is limited to occupational hazards, and your end-of-service award is your service entitlement in full.
Either way, the two are calculated and paid independently.
Your Allowances Count Towards the Award
Saudi EOSB runs on your wage as defined in Article 2 — basic salary plus due increments, not basic alone. Fixed housing and transport allowances form part of the base.
At this wage level the difference is substantial. On a package of SAR 25,000 basic plus SAR 6,000 housing and SAR 2,500 transport, your wage is SAR 33,500:
| Basis used | 10 years |
|---|---|
| Basic only (SAR 25,000) | SAR 187,500 |
| Wage (SAR 33,500) | SAR 251,250 |
SAR 63,750 of difference — and it never appears as a deduction on any statement, because it’s built into the calculation before the statement is written.
Article 86 permits an agreed written exclusion of variable pay such as commission and sales percentages. It doesn’t extend to your fixed housing allowance.
Ask which wage figure was used. It’s the single most valuable question at this salary.
What Can Lawfully Be Deducted
Article 88 permits your employer to deduct amounts you legitimately owe them before paying the balance.
That covers a documented company loan, a salary advance not yet repaid, unreturned company property, or amounts owed under a written agreement you signed.
It does not cover an undocumented shortfall raised at the point of exit, or anything resembling a penalty for resigning. Article 85 may reduce the award on a fixed-term resignation, but that is a calculation rule, not an additional deduction on top.
Ask for every deduction listed separately. Amounts bundled into a single adjustments line are worth questioning on principle.
If You Resign, Contract Type Decides
On a fixed-term contract, Article 85 reduces the award: nothing under two years, one third between two and five, two thirds between five and ten, and the full award at ten or more.
Since 19 February 2025, that reduction applies to fixed-term contracts only. Where an employee on an indefinite contract ends the relationship on notice, the full award is payable.
On SAR 25,000 with eight years of service:
| Situation | Award |
|---|---|
| Terminated by employer | SAR 137,500 |
| Contract expired | SAR 137,500 |
| Resigned, indefinite contract | SAR 137,500 |
| Resigned, fixed-term contract | SAR 91,667 |
SAR 45,833 decided by which contract you signed. Check your Qiwa record.
Part Years Are Paid in Proportion
| Service | Full award |
|---|---|
| 1 year 6 months | SAR 18,750 |
| 3 years 6 months | SAR 43,750 |
| 5 years 6 months | SAR 75,000 |
| 7 years 4 months | SAR 120,833 |
| 12 years 9 months | SAR 256,250 |
At this wage each month past year five is worth roughly SAR 2,083. Rounding a part year down is expensive, so check the service dates on your statement.
Probation counts towards your service. Training and apprenticeship periods do not.
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, or within three months of giving birth.
Article 81 allows you to leave immediately, without notice, and keep all your statutory rights including the full award, where the employer failed to meet 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, payment is due within one week where the employer ended the contract, and within two weeks where you did.
Settle before your final exit is processed. At six-figure amounts, the practical difference between resolving a dispute inside the Kingdom and outside it is significant.
If the settlement doesn’t reconcile, file through the MHRSD friendly settlement process, which precedes the Labour Court. Cross-check your figure against the official MHRSD calculator first — an official output attached to a written request carries weight.
Do not sign the release until every line makes sense to you. A signed release is considerably harder to reopen.
Establish the Gross Figure First
Enter your full wage — basic plus fixed allowances — and your service dates in the Saudi Arabia Gratuity Calculator.
Work out what the award should be before you look at the statement. Then the only thing left to examine is the difference, which is a much shorter conversation.
Frequently Asked Questions
How much gratuity on SAR 25,000 after 5 years?
SAR 62,500 if SAR 25,000 is your full wage.
How much after 10 years?
SAR 187,500.
What else should be in my final settlement?
Unused annual leave, unpaid salary to your last working day, notice pay where notice was waived, a repatriation ticket where your contract provides one, and any pending commission or bonus.
How much is my unused leave worth?
Saudi law entitles you to at least 21 days a year, rising to at least 30 days after five consecutive years. At eight years on SAR 25,000, thirty unused days is SAR 25,000.
Does GOSI reduce my end-of-service award?
No. GOSI is a separate system and cannot be offset against your Article 84 entitlement.
Do my allowances count towards the award?
Yes. It runs on your wage, which includes fixed housing and transport allowances.
What can my employer deduct?
Documented amounts you legitimately owe — a company loan, a salary advance, unreturned property, or amounts under a written agreement. Not an undocumented shortfall.
Does resigning reduce it?
On a fixed-term contract, yes. Since February 2025 the reduction no longer applies to indefinite contracts.
Is there a maximum award in Saudi Arabia?
No. Unlike the UAE, there is no cap.
How long does my employer have to pay?
One week if they ended the contract, two weeks if you did.
Last updated: September 2026 Based on: Saudi Labour Law (Royal Decree M/51), Articles 2, 81, 84, 85, 86, 87, 88 and 109 · Royal Decree M/44 of 2024
Written by Farhan — About
Working on a different wage? See our breakdowns for SAR 6,000, SAR 12,000, SAR 15,000 and SAR 20,000.
