SAR 3000 Salary Gratuity in Saudi Arabia (2026): Why Year Two Decides Everything

Your SAR 3000 salary gratuity is SAR 3,000 after two years and SAR 7,500 after five — if your employer ends the contract.

But if you’re on a fixed-term contract and you resign, there’s a line that matters more than any of those numbers: resigning before two years pays you nothing at all. Not a reduced amount. Nothing.

At this wage level people change employers often, which makes that two-year mark the single most valuable thing to know about your award.

Quick Answer — Full Award

Half a month’s wage: SAR 3,000 ÷ 2 = SAR 1,500

Each of your first five years earns half a month’s wage. From year six, each year earns a full month.

There is no maximum cap in Saudi Arabia.

The Two-Year Line on a Fixed-Term Contract

Article 85 sets a scale for employees who resign from a fixed-term contract. Below two years, the entitlement is nothing.

One month apart. And it isn’t a small proportion of something — below two years there is simply no award to reduce.

But this only applies to fixed-term contracts. Since 19 February 2025, an employee on an indefinite contract who ends the relationship on notice receives the full award — SAR 3,000 at two years, with no reduction at all.

So the first question isn’t how long you’ve worked. It’s which contract you signed.

Check Your Contract Type Before Anything Else

You can confirm this in two places:

Your Qiwa contract record. Every registered contract appears there, with its type and dates.

Your signed employment agreement. If it names a fixed end date, it’s fixed-term. If it runs until either side ends it, it’s indefinite.

Expatriate employees in Saudi Arabia are commonly on fixed-term contracts, so don’t assume — check.

Here’s what it’s worth on SAR 3,000 at five years of service:

Our SAR 10,000 breakdown covers the 2025 amendment in full.

The Full Article 85 Scale

For fixed-term resignations, on SAR 3,000:

At ten years the scale reaches the full award, so the reduction disappears entirely.

Your Allowances Count Towards the Award

This is where a lot of employees at this wage level lose money without knowing it.

Saudi EOSB is calculated on your wage as defined in Article 2 — basic salary plus due increments. Fixed housing and transport allowances form part of that base. They are not excluded the way they are in the UAE or Qatar.

On a package of SAR 3,000 basic plus SAR 750 housing, your wage is SAR 3,750:

Ask HR which figure they used. If it’s your basic alone, ask which provision supports leaving out your housing allowance.

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

Part Years Are Paid in Proportion

Probation counts towards your service. Training and apprenticeship periods do not.

When You Get the Full Award Regardless

Article 87 overrides the reduction completely in three cases:

• You leave due to force majeure — circumstances outside your control
• A female employee resigning within six months of her marriage
• A female employee resigning within three months of giving birth

Article 81 works similarly. It 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.

If you’re leaving because of something your employer did, Article 81 may matter more to your settlement than anything else on this page.

If You’re a Domestic Worker

Drivers, housemaids, cooks and household staff are covered by the separate Regulations for Domestic Workers, not the main Labour Law.

The entitlement exists, but the governing rules and complaint route differ. If this is your situation, check the terms in your specific contract rather than assuming the Article 84 calculation applies exactly.

When You Should Be Paid

Under Article 88:

• Within one week of the end of the contract, where the employer ended it
• Within two weeks, where you ended it

Your employer may deduct legitimate work-related debt, but you’re entitled to see it itemised.

Settle before your final exit is processed. Recovering an unpaid award after leaving the Kingdom is much harder.

If they won’t pay, file through the MHRSD friendly settlement process — it precedes the Labour Court. Keep your contract, Qiwa record, Iqama, payslips and any bank statements showing salary transfers.

Small amounts are still statutory entitlements. SAR 3,000 is worth claiming.

Check Your Own Dates

Enter your wage, contract type and both possible exit dates in the Saudi Arabia Gratuity Calculator. If you’re near your second anniversary, run both and compare.

[Calculate My EOSB]

FAQs

How much gratuity on SAR 3,000 after 2 years?

SAR 3,000 on termination, or on resignation from an indefinite contract. On a fixed-term resignation it’s SAR 1,000 — one third.

After 5 years?

SAR 7,500 full, or SAR 5,000 on a fixed-term resignation.

What if I resign at 23 months on a fixed-term contract?

Nothing is payable. Article 85 gives no award below two years.

Does that apply to indefinite contracts?

No. Since February 2025 the reduction applies only to fixed-term contracts.

How do I check my contract type?

Your Qiwa contract record and your signed employment agreement.

Does housing allowance count?

Yes. Saudi EOSB runs on your wage, which includes fixed allowances.

Is there a maximum award?

No. Saudi Arabia sets no cap.

Does probation count towards service?

Yes. Training and apprenticeship don’t.

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 and 88 · Royal Decree M/44 of 2024
Written by Farhan — About

Different wage? See SAR 5,000, SAR 10,000 and SAR 15,000.