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Enter the last monthly wage used for the legal award route
The statutory calculation is built on the worker's last wage, not on a rough package memory or on a basic-salary-only shortcut copied from another country.
🇸🇦 Saudi end of service
Saudi End of Service Calculator
Last updated on May 17, 2026 • Editorial policy
Saudi end-of-service award questions are rarely about one flat multiplier. They depend on the last wage, total service, whether the worker resigned or was terminated, and whether one of the full-award exceptions applies. Start with the Articles 84 to 88 route, then compare the result with the contract and settlement facts.
Half month then full month
The main Article 84 route uses half a month's wage for each of the first five years and one month's wage for each later year.
Resignation can reduce the share
Article 85 can cut the worker's share below the full award unless service is long enough.
Some exits still keep the full award
Article 87 preserves the full award in force majeure and certain female-worker cases.
End-of-service calculator
Start here when the real question is the statutory Saudi end-of-service award itself, not the wider monthly payroll picture.
Checking monthly salary instead of the final award?
Use the Saudi Salary Calculator when the main issue is take-home pay, GOSI deductions, or the contributory wage base rather than end-of-service settlement.
The statutory award route is isolated first here. It is not a full final-settlement engine for unpaid salary, leave balance, deductions, or Article 80 dispute positions.
How to read the end-of-service result
Use the page as a labour-law settlement check first: identify the last wage, test the service period, and then read the correct share branch for the way the relationship ended.
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Use the service period as precisely as the settlement requires
Completed years, extra months, and extra days all matter because the award is not restricted to a rough whole-year approximation.
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Choose the right contract-end route
The legal share can change materially when the worker resigned, when a full-award exception applies, or when the employer ended the relationship.
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Read the result as the statutory award first
The final settlement can still contain other lines such as unpaid salary, leave balance, deductions, or disputes over the reason the relationship ended.
How this Saudi award estimate works
The important part is not just the number, but which labour-law branch is producing it. The real analytical question is whether the issue sits in the formula itself, the resignation share, or the wage line being used to build the award.
| Rule point | Treatment here | Why it matters |
|---|---|---|
| Full award formula | Half a month's wage for each of the first five years, then one month's wage for each later year. | This is the baseline under Article 84 before resignation shares are applied. |
| Actual wage basis | Uses the worker's last wage rather than a basic-salary-only shortcut. | Saudi end-of-service mistakes often start when people copy a basic-wage rule from another Gulf country. |
| Resignation share | Applies the one-third, two-thirds, or full-award route according to service length. | Many Saudi end-of-service mistakes come from forgetting that resignation is not always a full-award route. |
| Full-award exceptions | Lets force majeure and the female-worker marriage or childbirth exception keep the full award. | Article 87 can override the normal resignation reduction logic. |
| Settlement timing | Explains the one-week or two-week settlement rule separately in the content. | The amount and the payment deadline are both part of a real final-settlement check. |
Current legal routes used here
The estimate is built around the normal private-sector settlement branches that most Saudi end-of-service questions turn on. That matters because the result is only meaningful once the governing article path is clear.
| Labour-law route | Treatment here | Why users usually need it |
|---|---|---|
| Article 84 full-award route | Half a month's wage for each of the first five years and one month's wage for each later year, with proportional treatment for fractions of a year. | This is the starting point when the employer ends the relationship, the contract expires, or a full-award branch applies. |
| Article 85 resignation route | The full-award value is reduced to no award, one-third, two-thirds, or full award depending on continuous service length. | This is the branch users most often misread when they assume resignation always keeps the whole award. |
| Article 87 full-award exceptions | Force majeure and the female-worker marriage or childbirth exception preserve the full-award route even though the worker is the one leaving. | This is where many weaker summaries oversimplify the resignation rule and miss the statutory exception. |
| Article 88 settlement timing | The page shows the one-week and two-week settlement windows separately from the award amount. | The legal amount and the payment deadline are two different questions, and both usually matter in a real settlement check. |
What counts in the last wage
This is where many Saudi end-of-service disputes begin. Article 84 uses the last wage received, and Article 86 allows some variable commission-style amounts to sit outside the calculation base by agreement. In practice, the wrong wage line causes more bad settlements than the wrong multiplier.
| Wage item | Normal treatment here | Why it matters |
|---|---|---|
| Basic wage | Included. | It is always part of the end-of-service base. |
| Fixed housing or transport allowance | Treated as part of the actual wage when it belongs to the last wage route used in practice. | Many underpayment disputes start when employers calculate on basic salary alone. |
| Variable commission or sales-based pay | Not modeled automatically here because Article 86 can exclude some variable components by agreement. | This is one of the places where the contract and payroll record matter more than a generic calculator assumption. |
| One-off bonus or discretionary payment | Not treated as part of the award base here. | The statutory award should be built on the legal wage base, not on every irregular payment that happened near the end. |
Actual wage is not the same as the GOSI wage base
This is one of the most common places two different payroll concepts get blurred. The monthly insurance wage and the labour-law end-of-service wage can overlap, but they are not automatically the same legal line.
| Question | End-of-service view here | Why the distinction matters |
|---|---|---|
| What wage is being tested? | The worker's last wage on the Articles 84 to 88 award route. | This is the line that should anchor the statutory award, not a monthly insurance shortcut copied from a salary page. |
| Is it the same as the GOSI contributory wage? | Not necessarily. | A worker can have a monthly insurance base that is narrower than the wage line relevant to the final labour-law settlement. |
| What usually causes confusion? | People carry a GOSI-style wage number into the end-of-service question without checking whether the settlement uses a different actual-wage reading. | That can understate the award even when the service-period math itself is done correctly. |
Why one Saudi EOS estimate can differ from another
If two Saudi end-of-service estimates show different answers, the disagreement is usually not because one can multiply half a month and one full month differently. It is usually because the wage base, the service record, or the legal branch is not the same.
| Difference point | Why it changes the award |
|---|---|
| Basic salary used instead of last actual wage | This can materially understate the award where fixed wage elements belong to the actual-wage route used in the final settlement. |
| Whole years only | A page that ignores extra months and days can understate or overstate the award, especially near resignation thresholds or on longer service histories. |
| Resignation share misread | Two pages can show different outputs simply because one kept the full-award value and the other applied the one-third or two-thirds resignation share correctly. |
| Article 87 exception missed | If a full-award exception applies, the case should not stay trapped inside the ordinary resignation reduction route. |
| Settlement sheet versus award alone | Some employers show a final settlement total that includes salary, leave, deductions, or other lines. That figure is not automatically the same thing as the statutory end-of-service award. |
What to check before relying on the award
Most settlement errors do not come from the Article 84 multiplier itself. They come from using the wrong wage base or the wrong exit route.
| Checkpoint | Why it matters |
|---|---|
| Is the last wage the right legal wage basis? | If the settlement uses the wrong wage basis, every later calculation can look formally correct while still producing the wrong award. |
| Does the service period include the right months and days? | Small service-period differences can matter near resignation thresholds or when the settlement is built from exact payroll records. |
| Did the worker resign or was the relationship ended by the employer? | The entitlement share can change materially once the route moves from a full-award branch into a resignation branch. |
| Does Article 87 preserve the full award? | Force majeure and the female-worker exception can override the normal resignation reduction logic. |
| Is there an Article 80 dispute? | If the employer is claiming dismissal for cause, the case can move outside the normal award route used here. |
What a final settlement can still contain beyond the award
The statutory award should be separated from the broader settlement sheet. The award is only one line inside the full exit accounting.
| Possible settlement line | How it relates to the award |
|---|---|
| End-of-service award | This is the statutory labour-law amount calculated under the route used here. |
| Unpaid salary | This belongs to the final settlement, but it is separate from the Articles 84 to 88 award itself. |
| Unused leave balance | Leave compensation can lift the final settlement total without changing the statutory end-of-service award line. |
| Deductions or debts | The settlement sheet can reflect lawful deductions or debts even when the award calculation itself was built correctly. |
| Disputed dismissal position | If the employer is invoking Article 80 or another dispute path, the statutory award position may itself be contested and should not be treated as a simple calculator-only issue. |
Worked settlement cases
These cases show why the same last wage can still produce different awards once the legal share branch and the precise service period change.
| Case | Inputs doing the work | Full-award value | Estimated award | What changed |
|---|---|---|---|---|
| Employer termination after 6 years | Last wage `SAR 9,000`, `6` years, employer termination route. | `SAR 31,500` | `SAR 31,500` | The first five years create `2.5` months of wage and the sixth year adds another full month, so the full award is kept. |
| Resignation after 6 years | Last wage `SAR 9,000`, `6` years, resignation route. | `SAR 31,500` | `SAR 21,000` | The same full-award value is reduced to `two-thirds` because Article 85 applies the resignation share between five and ten years. |
| Proportional service period with extra months and days | Last wage `SAR 9,000`, `6` years, `4` months, `12` days, employer termination route. | `SAR 34,590.41` | `SAR 34,590.41` | The page keeps the proportional part of service instead of flattening the case into a whole-year approximation. |
End-of-service rules and official sources
Start with the normal private-sector Articles 84 to 88 route, then move to contract review if the legal path is disputed.
- Articles 84 to 88 of the Saudi Labour Law set the route used here for private-sector settlement checking.
- The result is built from the worker's last wage and service period, with proportional treatment for fractions of a year down to the extra-day input.
- The page separates the statutory award from the wider final settlement because a settlement sheet can still include unpaid salary, leave balance, deductions, or other disputed lines.
- Live disputes can still turn on Article 80 dismissal-for-cause claims, contract wording, Article 86 commission treatment, deductions, and the factual reason the contract ended.
- The route here is for the main private-sector labour-law framework. Domestic workers use a separate end-of-service rule and should not be checked against this result.
Related Saudi pages
Use the next page that matches the payroll or labour-law question you still need to check.
Saudi Arabia Hub
Use this when you want the full Saudi tools set, payroll snapshot, and labour-law routing in one place.
Saudi Salary Calculator
Use this when the issue is monthly take-home pay, GOSI deductions, or the contributory wage base.
Saudi End of Service Explained
Use this when you want the full Articles 84 to 88 logic in guide form with worked examples and resignation edge cases.
Saudi Gross vs Net Salary
Use this when the next question is how monthly take-home pay and the insured wage base differ from the final-settlement route.
FAQ
How is the Saudi end-of-service award usually calculated?
The main rule in Article 84 is half a month's wage for each of the first five years of service and one month's wage for each later year, using the worker's last wage and a proportional treatment for fractions of a year.
Is Saudi end-of-service based on the actual wage or only the basic salary?
This route is built around the worker's last wage, not a basic-salary-only shortcut. That is one reason Saudi end-of-service should not be copied mechanically from other Gulf gratuity systems.
Does resignation reduce the Saudi end-of-service award?
Yes. Under Article 85, resignation can reduce the worker's share of the full award. There is no award below two years, one-third after at least two years and up to five years, two-thirds above five years and below ten years, and the full award at ten years or more.
Are there full-award exceptions even if the worker leaves?
Yes. Article 87 keeps the full award in force majeure cases, and it also preserves the full award for a female worker who ends the contract within six months of marriage or within three months of childbirth.
When should Saudi end-of-service dues be settled?
Article 88 says the employer should settle dues within one week from the end of the contract if the employer ended the relationship, and within two weeks if the worker ended it.
Is the final settlement always the same as the end-of-service award?
No. The end-of-service award is one settlement line. The final settlement can also include unpaid salary, leave balance, deductions, or dispute-related adjustments.
Is the wage used for Saudi end-of-service the same as the GOSI contributory wage?
Not necessarily. The labour-law end-of-service route is built on the worker's last wage. The GOSI contributory wage used for monthly insurance purposes can be a different number.
Does the end-of-service result cover Article 80 dismissal-for-cause disputes?
No. The estimate is built for the normal Articles 84 to 88 award route. If the employer is claiming an Article 80 dismissal-for-cause path, the statutory award position can change and the case should be checked against the contract and the legal facts.
Does the estimate cover domestic-worker end-of-service rules?
No. Domestic workers follow a separate end-of-service rule. The estimate is built for the main private-sector labour-law route in Articles 84 to 88.