How to use this calculator
- Enter your last monthly wage in SAR. In Saudi Arabia the benefit is based on your wage — basic salary plus fixed allowances such as housing — so use that combined figure.
- Enter your years and extra months of service.
- Choose whether the employer is ending the contract or you are resigning — this changes the result a lot — then click Calculate.
Formula — how it is calculated
Article 84 sets the basic formula: for each of the first five years you earn half a month's wage; for every year beyond five you earn a full month's wage. There is no upper cap on the total in Saudi Arabia. Part years are counted in proportion.
If your employer terminates the contract, or a fixed-term contract simply expires, you receive 100% of that amount. If you resign, Article 85 reduces it: under 2 years of service you receive nothing; from 2 to under 5 years you receive one third; from 5 to under 10 years, two thirds; and after 10 years or more, the full amount. Special cases in Article 87 — for example a woman leaving within six months of marriage or three months of childbirth, or force majeure — restore the full award even on resignation; a calculator cannot judge those cases, so check them separately.
The wage used here is your last wage: basic salary plus the fixed allowances in your contract. Variable pay such as commission and overtime is generally not part of the base unless your contract says so.
Worked example
Ahmed's last monthly wage is SAR 12,000 and he has served 8 years. The first five years earn 5 × 6,000 = SAR 30,000. The next three years earn 3 × 12,000 = SAR 36,000. His full award is SAR 66,000. If his employer ends the contract, he receives all SAR 66,000. If Ahmed resigns instead, 8 years falls in the 5–10 year band, so he receives two thirds: SAR 44,000. Try both options above to see the difference.
Frequently asked questions
How much is end of service in Saudi Arabia after 5 years?
At exactly 5 years, the award is 5 × half a month's wage = 2.5 months of your last wage, paid in full if the employer ends the contract. Every year after that adds a full month's wage.
Do I lose my benefit if I resign in Saudi Arabia?
You lose part of it under Article 85: nothing under 2 years, one third at 2–5 years, two thirds at 5–10 years, and the full amount after 10 years of service.
Is there a maximum end of service benefit in Saudi Arabia?
No. Unlike the UAE and Kuwait, Saudi Labour Law sets no ceiling on the total amount — it keeps growing with service and wage.
Is the benefit based on basic salary or total wage?
On your last wage, which includes basic salary plus fixed allowances such as housing. That is wider than the UAE or Qatar rules, which use basic salary only.
I was dismissed for misconduct. Am I still entitled?
Dismissal under Article 80 for serious misconduct can remove entitlement entirely. That situation is outside this calculator — get advice before relying on any figure.