SAR 8,000 Salary Gratuity in Saudi Arabia (2026): Why Year Six Doubles It
Your SAR 8000 salary gratuity is SAR 20,000 after five years and SAR 60,000 after ten.
Look at those two numbers again. Five years earns SAR 20,000. The next five earn SAR 40,000 — twice as much for the same length of service.
That’s because Saudi Arabia doesn’t nudge your accrual rate up after five years. It doubles it. And that makes the five-year mark a sharper decision point here than almost anywhere else in the Gulf.
Quick Answer
Half a month’s wage: SAR 8,000 ÷ 2 = SAR 4,000
| Years of service | Award | Added that year |
|---|---|---|
| 1 year | SAR 4,000 | — |
| 2 years | SAR 8,000 | +4,000 |
| 3 years | SAR 12,000 | +4,000 |
| 4 years | SAR 16,000 | +4,000 |
| 5 years | SAR 20,000 | +4,000 |
| 6 years | SAR 28,000 | +8,000 |
| 7 years | SAR 36,000 | +8,000 |
| 8 years | SAR 44,000 | +8,000 |
| 10 years | SAR 60,000 | +8,000 |
| 15 years | SAR 100,000 | +8,000 |
| 20 years | SAR 140,000 | +8,000 |
Look at the right-hand column. Each of your first five years adds SAR 4,000. From year six, each adds SAR 8,000.
There is no maximum cap in Saudi Arabia.
How Saudi Compares to the Rest of the Gulf
The five-year step exists in several Gulf countries, but the size of it varies sharply.
| Country | Years 1–5 | After 5 years | Increase |
|---|---|---|---|
| Saudi Arabia | Half a month | One full month | 100% |
| UAE | 21 days | 30 days | 43% |
| Bahrain | Half a month (first 3 yrs) | One month | 100% at year 4 |
| Qatar | 3 weeks | 3 weeks | No change |
| Oman | One month | One month | No change |
Saudi Arabia and Bahrain double it. The UAE lifts it by less than half. Qatar and Oman don’t change it at all.
If you’ve worked in the UAE before and you’re applying the same mental model here, you’ll underestimate what long service is worth in Saudi Arabia.
What One More Month Is Worth
Since the accrual rate changes so sharply, here’s the monthly value on SAR 8,000:
| Where you are | Each extra month adds |
|---|---|
| Anywhere in years 1–5 | SAR 333 |
| Year 6 onwards | SAR 667 |
And the specific points around the threshold:
| Service | Award |
|---|---|
| 4 years 6 months | SAR 18,000 |
| 4 years 11 months | SAR 19,667 |
| 5 years exactly | SAR 20,000 |
| 5 years 1 month | SAR 20,667 |
| 5 years 6 months | SAR 24,000 |
| 6 years | SAR 28,000 |
Crossing from 4 years 11 months to 5 years 1 month adds SAR 1,000 for two months. Modest on its own — but from that point every future month is worth double what it was.
The value isn’t in reaching five years. It’s in what comes after. Staying a further two years past the threshold earns SAR 16,000. The two years before it earned SAR 8,000.
Your Allowances Belong in the Calculation
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.
On a package of SAR 8,000 basic plus SAR 2,000 housing and SAR 800 transport, your wage is SAR 10,800:
| Basis used | 5 years | 10 years |
|---|---|---|
| Basic only (SAR 8,000) | SAR 20,000 | SAR 60,000 |
| Wage (SAR 10,800) | SAR 27,000 | SAR 81,000 |
SAR 21,000 of difference at ten years.
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. Our SAR 5,000 breakdown explains the wage definition in full.
Part Years Are Paid in Proportion
| Service | Award |
|---|---|
| 1 year 6 months | SAR 6,000 |
| 2 years 3 months | SAR 9,000 |
| 3 years 6 months | SAR 14,000 |
| 4 years 8 months | SAR 18,667 |
| 5 years 6 months | SAR 24,000 |
| 7 years 4 months | SAR 38,667 |
Probation counts towards your service. Training and apprenticeship periods do not.
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. On an indefinite contract, an employee ending the relationship on notice receives the full award.
On SAR 8,000 with seven years of service:
| Situation | Award |
|---|---|
| Terminated by employer | SAR 36,000 |
| Resigned, indefinite contract | SAR 36,000 |
| Resigned, fixed-term contract | SAR 24,000 |
Check your Qiwa contract record before assuming which applies. Our SAR 10,000 breakdown covers the 2025 amendment in detail.
When the Reduction Never Applies
Article 87 overrides Article 85 entirely — force majeure, a female employee resigning within six months of marriage, or within three months of giving birth.
Article 81 lets you leave immediately without notice and keep full rights, where the employer failed essential obligations towards you.
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. Settle before your final exit is processed — recovering an unpaid award from abroad is far harder.
Run Both Dates
Enter your wage, contract type and two candidate exit dates in the Saudi Arabia Gratuity Calculator. If you’re inside your fifth year, compare a date before and after the threshold.
FAQs
How much gratuity on SAR 8,000 after 5 years?
SAR 20,000 if SAR 8,000 is your full wage.
After 10 years?
SAR 60,000.
Does the rate really double after five years?
Yes. Half a month per year becomes a full month per year. In the UAE the same step is only a 43% increase.
How much is one extra month worth?
SAR 333 during your first five years, SAR 667 after that.
Do my allowances count?
Yes. Saudi EOSB runs on your wage, which includes fixed housing and transport allowances.
Does resigning reduce it?
On a fixed-term contract, yes. Since February 2025, not on an indefinite contract.
Is there a maximum award?
No. Saudi Arabia sets no cap.
Does probation count?
Yes. Training and apprenticeship don’t.
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.
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