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Saudi end of service when you resign - how much do you keep?

The award under Article 84, the resignation shares of Article 85, the exceptions of Article 87 - with a worked example for every stage.

First: the full award (Article 84)

The end-of-service award in Saudi Arabia is half a month's wage for each of the first five years and one month's wage for each year after that, calculated on your last wage. Part of a year counts in proportion.

  1. 1Take your last monthly wage
  2. 2Half a month for each of years 1-5
  3. 3A full month for each year after 5
  4. 4If you resigned: apply the Article 85 share

Then: what you keep when you resign (Article 85)

If the employee resigns, only part of the award is paid:

Service when you resignShare of the award
Less than 2 yearsNothing
2 to 5 yearsOne third (1/3)
5 to 10 yearsTwo thirds (2/3)
10 years or moreAll of it

If the employer ends the contract, or the fixed-term contract simply ends, the full award is paid.

Example: monthly wage SAR 6,000

The full award grows like this - and this is what a resigning employee actually receives:

YearsFull award (SAR)If you resign (SAR)
13,0000
39,0003,000
412,0004,000
727,00018,000
1045,00045,000
What a resigning employee receives - wage SAR 6,000
1 yearSAR 03 yearsSAR 3,0004 yearsSAR 4,0007 yearsSAR 18,00010 yearsSAR 45,000

The chart shows why the 5-year and 10-year marks matter so much: resigning at 4 years gives SAR 4,000, while at 7 years it is already SAR 18,000, and from 10 years nothing is cut.

Thinking of resigning close to the 2, 5 or 10-year mark? A few more weeks of service can change your share a lot - check the exact date first.

When you get the full award even though you leave (Article 87)

  • You leave because of force majeure beyond your control.
  • A female employee ends her contract within 6 months of marriage or within 3 months of giving birth.

Which wage is used?

The Labor Law uses the wage, which can include regular allowances such as housing, not only the basic salary. Commissions and similar variable pay can be left out if the contract says so. Use the wage your contract names for the end-of-service award.

When is the award lost completely?

An employee dismissed for one of the serious reasons listed in Article 80 does not receive the award.

Work out your own end of service →

Sources

  • Saudi Labor Law, Articles 84, 85 and 87, as summarised by the Ministry of Human Resources (HRSD).
  • This guide is general information, checked in October 2026. Your employer, the ministry or a labour court gives the final figure.