Saudi Arabia End of Service Gratuity Calculator
Accurately calculate your Saudi end-of-service award in SAR under Saudi Labor Law with actual wage allowances, Article 85 resignation sliding tiers, and Article 87 statutory exceptions.
Saudi Arabia End of Service Gratuity Calculator
Saudi Labor Law (Articles 84, 85, & 87)
Statutory basis: Calculated on the last actual wage (basic salary + housing allowance + transport allowance).
Article 84: Half a month wage for each of the first 5 years, and 1 month wage for each year thereafter.
Includes expiry of fixed-term contract, employer termination (outside Art. 80), or retirement (100% full award under Art. 84).
Deducted from continuous service
Subtracted directly from final payout
Statutory Scope: Governed by the Saudi Labor Law (Royal Decree No. M/51 as amended) for private sector employees. Does not apply to civil service government employees under civil retirement pensions, military personnel, or domestic workers subject to individual ministerial regulations.
Key Statutory Provisions of Saudi End of Service Benefits
Half month wage for first 5 years; full month wage per year thereafter.
Resignation tiers: <2 yrs (0%), 2-5 yrs (1/3), 5-10 yrs (2/3), 10+ yrs (100%).
100% full award for women resigning within 6 mos of marriage or 3 mos of childbirth.
End of service gratuity in Saudi Arabia is computed on the **Total Actual Wage**, which aggregates the basic salary and fixed recurrent allowances (housing and transport). This key distinction significantly increases entitlement amounts.
Fractional years are pro-rated down to the exact day on a 365-day basis. Periods of unpaid leave are excluded from continuous service time, and employer debts are deducted from the final payout.
Frequently Asked Questions (Saudi EOSB)
How is end of service gratuity calculated under Saudi Labor Law?▼
Under Article 84, the award equals half a month wage (15 days) per year for the first 5 years, and a full month wage (30 days) per year thereafter, calculated on the last actual wage (basic salary plus housing and transport allowances).
What are the Article 85 resignation sliding scales in Saudi Arabia?▼
Under Article 85: Less than 2 years: 0%; 2 to < 5 years: 1/3 (33.33%); 5 to < 10 years: 2/3 (66.67%); 10 years or more: 100% full award.
What are the Article 87 exceptions granting full gratuity upon resignation?▼
Article 87 grants 100% full award upon resignation if a female worker terminates employment within 6 months of marriage or 3 months of giving birth, or if termination is due to force majeure.
Are housing and transport allowances included in the Saudi calculation?▼
Yes. Saudi Labor Law mandates calculation on the total actual wage, which includes base salary and all permanent recurring allowances such as housing and transport.
Is there a ceiling/cap on Saudi end of service benefits?▼
No. Unlike some regional jurisdictions, Saudi Labor Law imposes no statutory cap on end of service awards; they accumulate indefinitely with tenure.
What is the statutory deadline for paying end of service dues in Saudi Arabia?▼
Employers must pay all severance entitlements within 1 week of termination if initiated by the employer, or within 2 weeks if the employee resigned.
Looking for the UAE Gratuity Calculator?
Calculate gratuity under UAE Decree-Law 33/2021 with 21/30 day tiers, no resignation deduction, and 2-year cap.