How Saudi Arabia gratuity is calculated
The award is based on your last actual wage (basic salary plus fixed allowances). You earn half a month of wage for each of the first 5 years and one full month for every year after that. If your employer ends the contract, you receive the full award. If you resign, Article 85 applies: under 2 years — nothing; 2 to 5 years — one third; 5 to 10 years — two thirds; 10 years or more — the full award.
Worked example
Monthly wage SAR 8,000, 7 years of service, employer ended the contract: first 5 years = 2.5 months, next 2 years = 2 months, total 4.5 months × SAR 8,000 = SAR 36,000. If the same employee had resigned, the award would be two thirds: SAR 24,000.
Frequently asked questions
Is Saudi end-of-service calculated on basic salary or total wage?
On your last actual wage — basic salary plus fixed allowances such as housing. This is different from the UAE and Qatar, which use basic salary only.
How much do I get if I resign in Saudi Arabia?
Under 2 years: nothing. 2–5 years: one third of the award. 5–10 years: two thirds. 10+ years: the full award.
What if my employer terminates me?
You receive the full calculated award regardless of service length, unless you are dismissed for gross misconduct under Article 80.
Are women treated differently on resignation in Saudi Arabia?
Yes — a woman who ends her contract within 6 months of marriage or 3 months of childbirth receives the full award. This calculator uses the standard scale; mention this exception to your HR if it applies to you.
Other Gulf countries
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