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Saudi End-of-Service Gratuity Calculator

Calculate your end-of-service award (gratuity) under Saudi Labor Law.

This calculator currently supports Saudi Arabia only.

Enter your values to calculate your result.

This estimates the standard end-of-service award under Saudi Labor Law Articles 84-85 for a typical private-sector employee. It doesn't account for unpaid leave deductions, disciplinary dismissal (Article 80, which can forfeit the award entirely), GOSI-covered employment nuances, or contract-specific terms. Consult HR or a labor law professional for your specific situation.

Formula

Full gratuity = 0.5 x wage x min(years, 5) + 1 x wage x max(years - 5, 0). Resignation reduces this to 1/3 (2-5 years), 2/3 (5-10 years), or full (10+ years); under 2 years' resignation gets none.

Saudi Labor Law Article 84 sets the base formula: half a month's wage for each of the first five years of service, and a full month's wage for each year after that, based on your last wage. Article 85 reduces this award if you resign (rather than being terminated or reaching the end of your contract), unless you've completed 10 or more years.

Example

An employee earning 10,000 SAR/month who resigns after 7 years of service has a full gratuity of 45,000 SAR (5 x 0.5 x 10,000 + 2 x 10,000), reduced to two-thirds for resigning between 5-10 years: 30,000 SAR.

Frequently Asked Questions

Why is my gratuity reduced?

If you resign with less than 10 years of service, Saudi Labor Law Article 85 reduces your award: no gratuity under 2 years, one-third for 2-5 years, and two-thirds for 5-10 years. Being terminated by your employer, reaching the end of a fixed contract, or retiring (at the statutory retirement age or voluntarily/early) doesn't reduce it — all three receive the full 100% gratuity.

What wage is used in the calculation?

Your last basic wage (not including allowances like housing or transportation, per common practice under Article 84's wage basis).