If you work in Saudi Arabia, your end-of-service award is one of the most valuable parts of your final settlement — yet the formula behind it is widely misunderstood. The rules sit in Articles 84 and 85 of the Saudi Labour Law, and once you know them you can check your own figure in minutes.
This guide walks through exactly how the award builds up, how partial years are treated, and how resigning rather than being terminated changes what you receive.
The award accrues against your most recent agreed wage. For each of your first five years you earn half a month’s wage; from the sixth year onward you earn a full month’s wage per year. So ten years of service is worth two and a half months for the first five years plus five months for the next five — seven and a half months’ wage in total.
You do not lose the months between full years. Service is pro-rated, so eighteen months counts as 1.5 years and is paid accordingly. That is why the calculator asks for both years and months.
If you resign rather than being terminated, a reduction applies based on total service: nothing under two years, one-third from two to five years, two-thirds from five to ten years, and the full amount once you complete ten years. Being terminated by your employer always pays the full award.