Under Articles 84 and 85 of the Saudi Labour Law, your end-of-service award accrues against your most recent agreed wage. It builds in two tiers — half a month’s wage for each of the first five years, then a full month’s wage for every year beyond five. Partial years are paid pro-rata.
If you resign rather than being terminated, the award is reduced on a scale tied to total service: nothing below two years, one-third between two and five years, two-thirds between five and ten years, and the full amount once ten years are complete.
Both examples assume a SAR 10,000 monthly basic wage and a contract ended by the employer.
Basic vs gross salary. The award is calculated on the agreed wage — for most private-sector contracts the basic salary, excluding housing and transport allowances, unless your contract names the full wage as the basis.