Saudi End of Service Calculator 2026
Calculate your exact Saudi End-of-Service Award (مكافأة نهاية الخدمة) in Saudi Riyals (SAR) under Saudi Labour Law (Articles 84, 85, 87 & 88) and Qiwa guidelines.
Monthly Salary & Wage Components (SAR)
Under Saudi Labour Law Article 2, actual total wage includes basic salary plus recurring allowances.
Under new Saudi labor regulations, contracts registered on Qiwa are standard fixed terms.
Deducted from service length per law.
Total Saudi End-of-Service Benefit (مكافأة نهاية الخدمة)
Governed by Saudi Labour Law: Article 84
Official Calculation Breakdown & Statutory Formula
The employer is legally required to settle all end-of-service awards and final wage dues within 1 week (7 days) when employment is ended by the employer, or within 2 weeks (14 days) when the employee resigns.
Understanding the Saudi End-of-Service Award (مكافأة نهاية الخدمة)
The Saudi End-of-Service Award (مكافأة نهاية الخدمة) is a statutory severance benefit mandated by the Saudi Labour Law (Royal Decree No. M/51, amended). Every private-sector employer operating in the Kingdom of Saudi Arabia must pay this lump-sum entitlement to employees upon contract completion, separation, or qualifying resignation.
Administered through the Ministry of Human Resources and Social Development (MHRSD / وزارة الموارد البشرية والتنمية الاجتماعية) and tracked via the centralized Qiwa (قوى) electronic platform, the award acts as mandatory employment insurance and long-term service recognition for both Saudi nationals and expatriate workers.
Article 84: Statutory Accrual Rate
The general calculation formula grants half a month's wage (15 days) for each of the first 5 years of continuous service, and one full month's wage (30 days) for every year beyond five. Partial years are calculated pro-rata on exact days served.
Article 85: Resignation Reductions
When an employee initiates resignation: Under 2 years yields 0%; between 2 and 5 years yields 1/3 (33.33%); between 5 and 10 years yields 2/3 (66.67%); 10+ years yields 100% full award.
Article 87: Full Award Exceptions
Employees receive 100% full award upon resignation if: (1) A female worker resigns within 6 months of marriage or 3 months of childbirth; (2) Leaving due to Force Majeure; (3) Leaving due to employer breach under Article 81.
Article 80: Forfeiture & Misconduct
An employee dismissed under Article 80 for gross workplace misconduct (such as theft, forgery, physical assault, trade secret leaks, or prolonged unexcused absence) forfeits all severance and end-of-service rights.
Resignation vs. Employer Termination Entitlement Matrix
| Service Period (Tenure) | Employer Termination / Expiry (Art. 84) | Employee Resignation (Art. 85) | Female Resignation / Art. 87 |
|---|---|---|---|
| Less than 2 Years | 100% of accrued rate | 0% (Ineligible) | 100% Full Award |
| 2 to Less than 5 Years | 100% of accrued rate | 33.33% (1/3 Award) | 100% Full Award |
| 5 to Less than 10 Years | 100% of accrued rate | 66.67% (2/3 Award) | 100% Full Award |
| 10 Years and Above | 100% Full Award | 100% Full Award | 100% Full Award |
Why Allowances Are Included in Saudi End-of-Service Calculations
A common point of dispute between workers and employers in Saudi Arabia is whether gratuity is computed purely on the Basic Salary or on the Total Actual Wage.
Under Article 2 of the Saudi Labour Law, the statutory definition of Wage (الأجر) explicitly includes: "The basic wage in addition to all other increases and allowances of any kind whatsoever, granted to the worker in return for his work...".
Consequently, Saudi Labor Courts (المحاكم العمالية) and the official Qiwa electronic severance system calculate end-of-service awards using the last drawn full monthly wage (Basic Salary + Fixed Housing Allowance + Fixed Transportation Allowance), unless an explicit and lawful employment contract provision validly states otherwise.
Working in Saudi Arabia? Prove Your Arabic Language Level
From navigating Qiwa (منصة قوى) and reviewing legal employment contracts to interacting with government labor inspectors, client executives, and local teams, workplace Arabic proficiency is a major competitive advantage in the Saudi job market.
Take our free, timed 40-question Arabic proficiency assessment to test your Modern Standard Arabic (MSA) grammar, business vocabulary, and reading comprehension across CEFR levels (A1 to C2) with an instant score report and certificate option.
Related Gulf & Career Tools
Frequently Asked Questions (FAQ)
- 2 to less than 5 years: Worker receives one-third (33.33%) of the calculated award.
- 5 to less than 10 years: Worker receives two-thirds (66.67%) of the calculated award.
- 10 years or more: Worker receives the full award (100%).
- A female employee who leaves work within 6 months of her marriage contract or within 3 months of giving birth.
- A worker leaving work due to an unexpected event of Force Majeure (القوة القاهرة) beyond their control.
- A worker leaving work due to the employer's unlawful breach of obligations, fraud, assault, or safety violations under Article 81.
Check Out Other Popular Tools
Fairy Name Generator
Discover your magical fairy name! Generate unique, whimsical names for stories, games, or just for fun.
Meta Description Checker
Check any website's meta description instantly. Verify presence, character length, and SEO quality to improve your Google search snippet and click-through rate.
Find String Length
Free online tool to quickly find the string length of any text. Count characters with or without spaces instantly in your browser.
Was this tool helpful?
Comments
Loading comments...