Saudi End of Service Calculator 2026 (KSA EOSB)
Saudi employer tools · Updated November 2026
Work out the end-of-service award for an employee in Saudi Arabia. Enter the last monthly wage, the service dates and why the contract ended. The calculator applies the Saudi Labour Law rules for termination and resignation, and shows each step for HR teams and employees.
Results are estimates for planning. They are not legal advice. Unused leave and other final dues are paid separately.
How the Saudi End-of-Service Award Is Calculated
The end-of-service award, or end-of-service benefit (EOSB), is a lump sum paid when employment ends. Articles 84 and 85 of the Saudi Labour Law set the rules.
| Service | Employer ends contract or it expires | Employee resigns |
|---|---|---|
| Less than 2 years | Half a month per year | No award |
| 2 to less than 5 years | Half a month per year | One third of the award |
| 5 to less than 10 years | Half a month per year for years 1–5, then one month per year | Two thirds of the award |
| 10 years or more | Half a month per year for years 1–5, then one month per year | Full award |
Worked Examples
Contract ended by the employer after eight years
The last wage is SAR 12,000 a month, including housing and transport.
- First five years: 5 × SAR 6,000 = SAR 30,000.
- Years six to eight: 3 × SAR 12,000 = SAR 36,000.
- Full award: SAR 66,000.
Same employee resigns after eight years
Resignation after five to ten years earns two thirds of the award. Two thirds of SAR 66,000 is SAR 44,000.
Employee resigns after three years
The full award is 3 × SAR 6,000 = SAR 18,000. One third is due, which is SAR 6,000.
End-of-Service Rules Saudi Employers Must Follow
The wage that counts
The award uses the last wage, which includes the basic wage and fixed allowances. Commissions and similar variable pay can be excluded by agreement.
Exceptions that give the full award
A worker who leaves because of force majeure receives the full award. A woman who ends her contract within six months of marriage or three months of childbirth also does.
When no award is due
An employee dismissed under Article 80, for example for serious misconduct, loses the award. So does an employee who resigns before completing two years.
Payment deadline
Pay final dues within one week when you end the contract. When the employee resigns, the deadline is two weeks.
Record it on Qiwa
Employment contracts are documented on the Qiwa platform. Keep service dates and wage records accurate, because they drive the award.
Saudi End of Service vs UAE Gratuity
| Saudi Arabia | UAE | |
|---|---|---|
| Law | Saudi Labour Law, Articles 84–85 | Federal Decree-Law No. 33 of 2021 |
| Rate for years 1–5 | Half a month per year | 21 days of basic salary per year |
| Rate after year 5 | One month per year | 30 days of basic salary per year |
| Wage used | Last wage with fixed allowances | Last basic salary only |
| Effect of resignation | Reduced or removed below ten years | No reduction after one year |
| Cap | None in the formula | Two years of wages |
Use the UAE gratuity calculator for staff employed in the Emirates. New to EOR? Read what an Employer of Record does, or browse all hiring guides. For notice, leave and Iqama fees, see the Saudi labour law guide for employers.
Plan End-of-Service Costs When You Hire in Saudi Arabia
The award grows each year, and faster after year five. Accrue it monthly and include it in your hiring budget.
- For years one to five, accrue about 4.17% of the monthly wage each month. This is half a month spread over 12 months.
- From year six, accrue about 8.33% of the monthly wage each month.
- Budget for GOSI, the expat levy, Iqama renewals and health insurance as well.
- Check how each hire affects your Nitaqat band. Our Saudization guide explains the 2026 rules.
Remote engineers placed through staff augmentation are employed by Staffenza in India or Pakistan, so the Saudi award does not apply to them. Need people in the Kingdom without your own entity? Use our Employer of Record service in Saudi Arabia. It costs AED 899 per employee per month, plus government costs at actual cost. Compare the options with the hiring cost calculator.
Saudi End of Service FAQs
How is end of service calculated in Saudi Arabia?
The award is half a month of the last wage for each of the first five years. It is one full month for each year after that. Part years are paid in proportion.
Which wage is used for the end-of-service award?
The last wage is used. It is the basic wage plus fixed allowances such as housing and transport. Employer and employee can agree to leave out commissions and similar variable pay.
How much end of service do I get if I resign in Saudi Arabia?
Nothing for less than two years of service. One third for two to five years, two thirds for five to ten years, and the full award after ten years.
Do Saudi nationals receive the end-of-service award?
Yes. The Labour Law award applies to Saudi and non-Saudi employees. GOSI contributions are a separate obligation.
When is the full award paid after resignation?
The full award is paid when a worker leaves because of force majeure. It also applies when a woman ends her contract within six months of marriage or three months of giving birth.
When must the employer pay the end-of-service award?
Within one week of the contract ending when the employer ends it. Within two weeks when the employee resigns.
Does the award apply to fixed-term contracts?
Yes. The Ministry of Human Resources and Social Development states that it applies to fixed-term and open-ended contracts.