End of service calculator for Saudi labour law
An employee earns half a month's wage for each of the first five years and a full month's wage for each year after, with part years counted pro rata. A resignation before ten years reduces the award by length of service, and dismissal for cause under Article 80 forfeits it.
Updated 20 Oct 2026 · By the Seen team
Fill in the details and press Calculate to see the result here.
The result is an estimate for guidance, not legal advice. Actual amounts can differ with the contract, the employee's record and company policy.
How the gratuity is worked out
On the actual wage: basic salary plus fixed allowances, as the labour law defines it.
| Case | What the employee is owed |
|---|---|
| Each of the first five years | Half a month's wage |
| Each year after the fifth | A full month's wage |
| Resigned before two years | Nothing |
| Resigned after two and before five years | One third of the gratuity |
| Resigned after five and before ten years | Two thirds of the gratuity |
| Resigned after ten years or more | The full gratuity |
| Dismissed for cause (Article 80) | Nothing |
| Contract ended, mutual agreement, ended by the employer, or left under Article 81 | The full gratuity |
Example: an employee on an actual wage of SAR 10,000 with seven full years of service is owed SAR 45,000 when the contract ends, and SAR 30,000 on resignation.
Common questions
Is the gratuity worked out on basic salary only?
No. It is worked out on the actual wage: basic salary plus fixed allowances such as housing and transport, unless the contract says otherwise. That is why the calculator asks for allowances too.
How are part years counted?
Pro rata. Someone with five years and six months of service earns half a year's amount for the six months.
What happens if the employee resigns?
The award is reduced by completed years: nothing before two years, one third from two to under five, two thirds from five to under ten, and the full amount after ten.
Does unpaid leave change the length of service?
Yes. Unpaid leave beyond twenty days in a contract year does not count as service. This calculator does not subtract it; payroll in Seen subtracts it from the leave record automatically.
Does the calculator include compensation for unfair dismissal?
No. It works out the end-of-service gratuity only. Compensation for ending a contract without cause is a separate legal question that depends on the contract and the case.