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Saudi Arabia end-of-service gratuity calculator 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter your last salary and how long you have worked to see the gratuity you are owed in Saudi Arabia, whether you resign or the employer ends the contract.

Short answer

Under Article 84 of the Labour Law, the gratuity is half a month's pay for each of the first five years and a full month's pay for each year after that, based on your last pay, with part years counted. Pay here means actual pay: basic plus fixed allowances such as housing. Example: 5 years of service on a basic salary of 10,000 Saudi riyals (14,000 with allowances) gives 35,000 Saudi riyals when the contract ends or the employer ends it.

Your service

Saudi riyal
Saudi riyal
Some laws use the total salary, or cap the gratuity with it.

Worked examples: basic salary 10,000 SAR

Length of serviceIf you resignIf the contract ends
1 year07,000
3 years7,00021,000
5 years11,66735,000
10 years105,000105,000

For an expat with a total salary of 14,000 SAR (basic plus allowances). Amounts in SAR.

How it is calculated

The 5-year example above, step by step:

  1. First five years: 5 years × half a month's wage = 35,000 riyals
  2. Years beyond 5: 0 years × one month's wage = 0 riyals
  • Article 84 of the Labour Law: half a month's wage for each of the first five years and a full month's wage for each year after that, based on the last wage, with the award also due for parts of a year.
  • Under the Labour Law, the wage is the actual wage: basic pay plus fixed allowances due, such as housing. We used your gross monthly salary if you entered it, otherwise the basic.
  • Article 87: the full award is due if the worker leaves because of force majeure, or if a female worker ends the contract within 6 months of marriage or 3 months of giving birth.

Saudi Arabia salary calculator Tax guide to Saudi Arabia Overtime in Saudi Arabia Annual leave in Saudi Arabia Gratuity in other countries

Gratuity questions about Saudi Arabia

How much end-of-service gratuity will I get in Saudi Arabia?

Under Article 84 of the Labour Law, the gratuity is half a month's pay for each of the first five years and a full month's pay for each year after that, based on your last pay, with part years counted. Pay here means actual pay: basic plus fixed allowances such as housing. Example: 5 years of service on a basic salary of 10,000 Saudi riyals (14,000 with allowances) gives 35,000 Saudi riyals when the contract ends or the employer ends it.

How do I calculate end-of-service gratuity in Saudi Arabia?

Half a month's pay for each of the first 5 years and a full month's pay for each year after that, based on your last actual pay. Example: 10,000 riyals and 6 years gives 35,000 riyals when the employer ends the contract.

How much gratuity do I get if I resign?

Nothing if you served less than two years, one third of the gratuity from two to 5 years, two thirds from 5 to under 10 years, and the full gratuity after 10 years, under Article 85 of the Labour Law.

Do Saudis get end-of-service gratuity as well as social insurance?

Yes. The end-of-service gratuity under the Labour Law is a right of Saudi and non-Saudi workers alike, and it is separate from the GOSI pension.

Sources

  1. Labour Law (Articles 2, 84, 85 and 87), Ministry of Human Resources and Social Development edition, 2025 Official source · checked 2 October 2026

Based on each country's labour law, as listed on our sources page. Special cases (fixed-term contracts, dismissal for misconduct, domestic workers) can differ; check with the labour ministry in your country.

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