Biswashree Roy
Home / Gratuity Calculator / Saudi Arabia
● Free HR tool · Saudi Labor Law
Saudi Arabia End of Service Calculator 2026
حاسبة مكافأة نهاية الخدمة في السعودية
Looking for an end of service calculator Saudi Arabia employees and HR teams can trust? This one follows Articles 84 and 85 of the Saudi Labor Law and applies the resignation reductions automatically.
- Half month and full month rates
- Resignation reductions built in
- Uses actual wage including allowances
Calculate end of service
Pick a country, enter your salary and dates of service.
How did employment end?
SAR
Use the last actual wage: basic plus housing, transport and other fixed allowances.Your result is ready
Share a few details with your work email to see your result. We will also send you useful HR resources.
How end of service is calculated in Saudi Arabia: pay half a month of the last actual wage for each of the first 5 years and one full month for each year after that, pro rata for partial years. If the employee resigns, they get nothing under 2 years, one third for 2 to 5 years, two thirds for 5 to 10 years and the full award after 10 years.
Saudi end of service formula
EOSB = (Wage × 0.5 × first 5 years) + (Wage × years after 5)
The wage is the last actual wage: basic salary plus housing, transport and other regular allowances.
Worked example
Monthly wage of SAR 12,000 and 8 years of service, contract ended by the employer. First 5 years: 5 × 0.5 × 12,000 = SAR 30,000. Next 3 years: 3 × 12,000 = SAR 36,000. Total: SAR 66,000. If the employee resigned instead, they would receive two thirds: SAR 44,000.
Resignation vs termination
| Years of service | Employee resigns | Employer ends contract or contract expires |
|---|---|---|
| Less than 2 years | No award | Full award, pro rata |
| 2 to 5 years | One third | Full award |
| 5 to 10 years | Two thirds | Full award |
| 10 years or more | Full award | Full award |
Under Article 87, the full award is paid even on resignation in cases of force majeure, or when a female employee resigns within 6 months of marriage or 3 months of giving birth. Employees dismissed for misconduct under Article 80 lose the award.
Recent changes
Amendments to the Saudi Labor Law took effect on 19 February 2025. They changed several articles on contracts, notice and leave, but Articles 84 and 85 on the end of service award were not amended, so the formula above still applies in 2026.
How to use the Saudi end of service calculator
- Choose how employment ended. Pick contract ended or terminated, or resigned.
- Enter the monthly wage. Use the last actual wage: basic plus housing, transport and other regular allowances.
- Enter the joining date and last working day. The end of service calculator counts full and partial years.
- Click Calculate. You see the full award, any resignation reduction and the final EOSB.
Resignation example
Monthly wage of SAR 10,000 and 4 years of service, employee resigns. Full award: 4 × 0.5 × 10,000 = SAR 20,000. With 2 to 5 years of service the employee receives one third, so the EOSB calculator shows SAR 6,666.67.
Is end of service taxed in Saudi Arabia?
No. Saudi Arabia does not levy personal income tax on salaries, so the end of service award is paid in full. This calculator shows the statutory minimum, and contracts can pay more.
Sources
This end of service calculator is based on the following sources, reviewed in October 2026:
Running HR across Saudi Arabia and beyond?
Peoplebox brings performance reviews, OKRs, engagement and AI-led hiring into one platform, so HR teams spend less time on spreadsheets and more time on people.
Related HR guides
- Employee termination letter templates
Ready-to-use letters for ending employment, from resignation acceptance to termination for cause.
- Employee attrition: meaning, causes and how to reduce it
Why people leave and what HR teams can do before an exit happens.
- Talent retention strategies
Practical ways to keep your best people longer.
- Employee turnover: causes and how to reduce it
Understand turnover before it turns into costly exits.
More free HR tools
Free tools from the Peoplebox HR Toolkit for the rest of the employee lifecycle.
Frequently asked questions
Is this end of service calculator free?
Yes. The calculator is free. You share your name, work email and phone number once and can then calculate as many times as you like.
Is end of service taxable in Saudi Arabia?
No. There is no personal income tax on salaries in Saudi Arabia, so the award is paid in full.
How is end of service calculated in Saudi Arabia?
Half a month of the last actual wage for each of the first 5 years, plus one month for each year after that. Partial years are paid pro rata. Resignation reduces the award depending on years of service.
Do I get end of service if I resign in Saudi Arabia?
Yes, after 2 years. You receive one third of the award for 2 to 5 years, two thirds for 5 to 10 years and the full award after 10 years. Under 2 years, resigning employees receive nothing.
Is end of service based on basic salary in Saudi Arabia?
No. It is based on the last actual wage, which includes basic salary plus regular allowances such as housing and transport.
Is there a cap on end of service in Saudi Arabia?
No. The Saudi Labor Law does not cap the end of service award.
Did the 2025 labor law amendments change EOSB?
No. The amendments that took effect on 19 February 2025 did not change Articles 84 and 85, which set the end of service award.