Saudi end-of-service benefit calculator

Work out the end-of-service award under Articles 84 and 85 of the Saudi Labour Law — including the resignation scale that catches most people out.

Updated 21 August 2026

Basic pay plus any allowance paid regularly — housing and transport usually count. A bonus that varies does not.

How the employment ended

Length of service

Award earned (Article 84)

Payable (Article 85)

This is the statutory minimum computed from what you entered. It cannot see the contract, and it does not account for unpaid leave, or for the Article 87 cases — force majeure, and a woman leaving within six months of marriage or three months of childbirth — where the full award is payable despite resignation. A contract may also be more generous than the law. Treat this as a check, not as advice.

This is the most-asked HR question in the Kingdom and the one most often answered wrongly — not because the arithmetic is hard, but because two rules interact and most explanations only mention one.

The two rules

Article 84 says what is earned. Half a month’s wage for each of the first five years of service, then a full month’s wage for each year beyond five, calculated on the last wage. A partial year earns a partial award; nobody is rounded down to nothing.

Article 85 says how much of it is payable when the worker resigns. Not all of it, unless the service was long:

Service at resignation Share of the earned award
Under 2 years Nothing
2 to under 5 years One third
5 to under 10 years Two thirds
10 years or more All of it

When the employer ends the contract, or it simply expires, the full earned award is payable and Article 85 does not enter into it.

This is where the surprise lives. Someone told “half a month per year” who then resigns at four years has been told a true thing about Article 84 and nothing at all about Article 85, and receives a third of what they calculated.

What the calculator shows

Both steps, separately. What was earned, and then what is payable — because the useful information is which of the two rules cost the money, not a single figure with no explanation attached to it.

What it does not know

It computes the statutory minimum from what you enter. It cannot see the contract, which may be more generous than the law and then governs. It does not account for unpaid leave periods, which do not count toward service. And it does not model the Article 87 cases — force majeure, a woman leaving within six months of marriage or three months of childbirth — where the full award is payable despite a resignation.

Treat the number as a check on a figure somebody has given you. If it disagrees materially, that is the moment to read the contract properly or ask someone who does this for a living.

Frequently asked questions

How is the award calculated?

Article 84: half a month's wage for each of the first five years of service, and one full month's wage for each year after that, based on the last wage. Partial years are pro-rated rather than rounded.

What changes if the worker resigns?

Article 85 applies a scale to what was earned. Under two years, nothing is payable. Two to five years, one third. Five to ten years, two thirds. Ten years or more, the full amount. This is what surprises people — resigning at four years pays a third of the award, not all of it.

Which parts of the salary count as the wage?

The basic pay plus allowances paid regularly — housing and transport normally count. A bonus that varies from month to month does not. If your contract defines it differently, the contract governs where it is more generous.

Are there cases where a resignation still pays in full?

Yes. Article 87 covers them, including force majeure and a woman leaving within six months of marriage or three months of childbirth. This calculator does not model those — if one applies, the full earned award is payable.

Is this legal advice?

No. It computes the statutory minimum from what you type. It cannot see the contract, unpaid leave, or a disciplinary history. Use it as a check on a figure you have been given, not as the final word.

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