KalQLater.
Road Trip CostGratuity CalculatorResearchPark PulseSalary CalculatorTechnologyJobs & WorkTravelConsumerMethodology
Menu
Road Trip CostGratuity CalculatorResearchPark PulseSalary CalculatorTechnologyJobs & WorkTravelConsumerMethodologyAboutContact
KalQLater.

Trends, tested against reality.

Independent analysis built from public data.
Research & productsRoad Trip Cost CalculatorToll Tax CalculatorToll Plazas in IndiaAll researchPark PulseGratuity CalculatorUAE Gratuity CalculatorIndia Gratuity CalculatorSaudi Gratuity CalculatorSalary CalculatorTechnologyJobs & WorkTravelConsumer
TrustMethodologyEditorial standardsData sourcesCorrectionsAboutContactAuthor
© 2026 KalQLaterPublic data. Visible sources. Reproducible calculations.
Home›Gratuity Calculator›Saudi Arabia
Saudi Arabia · End-of-service · Data research

Saudi Arabia Gratuity Calculator: the end-of-service award, and what resigning costs you

Saudi law pays half a month's wage per year for the first five years and a full month after that, with no cap. The catch is resignation: leave on your own before 10 years and you lose between one third and all of it. The February 2025 Labor Law amendments did not change these fractions. Calculate yours below, with the working shown.

Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
0.5 → 1 monthof wage per year: years 1–5, then every year after
0 · ⅓ · ⅔ · fullpaid on resignation under 2, 2–5, 5–10 and 10+ years
No capon the total award
1 weekto pay after the employer ends the contract (2 weeks if you resign)

Calculate your Saudi Arabia gratuity

The law uses your actual last wage: basic plus fixed allowances such as housing (Article 2), unless your contract excludes commissions and variable pay (Article 86). Many employers use basic + housing + transport.

Estimated end-of-service gratuitySAR 53,384≈ ₹13,65,552 · 5.338 months of wage

How this number was calculated

  1. Service counted2,861 days − 0 unpaid = 2,861 days (7 yrs 10 mths 6 days) = 7.838 years
  2. years 0–50.5 month × 5 yrs = 2.5 months
  3. years 5–7.8381 month × 2.838 yrs = 2.838 months
  4. Full awardSAR 10,000 × 5.338 = SAR 53,384
  5. Resignation fractionNot applied

Estimate of the legal minimum only. Contracts and company policies can pay more, employers may deduct amounts you owe, and free-zone or government employers can follow different rules. Not legal advice.

Saudi Arabia gratuity formula and who qualifies

Award = wage × (0.5 × years up to 5 + 1 × years after 5) × resignation fraction

Worked example: SAR 10,000 a month, 7½ years, contract ended by the employer

5.0 years × 0.50 month + 2.5 years × 1.00 month = 5.000 months of wage. SAR 10,000 × 5.000 = SAR 50,000.

How the Saudi rules treat each situation
SituationMinimum serviceWhat is paid
Termination by employer or contract expiryAny service, pro rataFull award
Resignation, under 2 years—Nothing
Resignation, 2 to 5 years2 yearsOne third
Resignation, over 5 and under 10 years5 yearsTwo thirds
Resignation, 10 years or more10 yearsFull award
Force majeure; woman leaving within 6 months of marriage or 3 months of childbirthAnyFull award (Art. 87)
Dismissal under Article 80AnyNo award

Claim vs reality: does resigning in Saudi Arabia wipe out your gratuity?

Finding: only before two years. After that you keep a third, and after five years two thirds. The cost of resigning is largest just before the 10-year line: at 9 years 11 months the resignation award is one third smaller than the full award you would get a month later. On a SAR 10,000 wage that gap is about SAR 25,600.

Months of wage paid by years of service: Saudi Arabia vs UAE (law minimum)
ServiceSaudi Arabia, ended by employerSaudi Arabia, resignedUAE (basic)
1 year0.500.000.70
2 years1.000.331.40
3 years1.500.502.10
5 years2.500.833.50
7 years4.503.005.50
10 years7.507.508.50
15 years12.5012.5013.50
20 years17.5017.5018.50
25 years22.5022.5023.50

Calculated by KalQLater from the articles cited below. UAE figures use Article 51 of Federal Decree-Law No. 33 of 2021. Wage definitions differ: Saudi Arabia's base is described in the calculator, the UAE's is basic salary only, so equal months do not mean equal money.

Saudi Arabia gratuity table by wage and years of service

Gratuity (SAR) when the employer ends the contract
Monthly wage3 yrs5 yrs10 yrs20 yrs
SAR 5,000SAR 7,500SAR 12,500SAR 37,500SAR 87,500
SAR 10,000SAR 15,000SAR 25,000SAR 75,000SAR 175,000
SAR 20,000SAR 30,000SAR 50,000SAR 150,000SAR 350,000
SAR 40,000SAR 60,000SAR 100,000SAR 300,000SAR 700,000

Download all six Gulf countries: gcc-gratuity-months-by-tenure.csv (CC BY 4.0, please link to this page)

Methodology and limitations

Service is counted in calendar days between your joining date and last working day, inclusive, minus unpaid days, and converted to years at 365 days. Each band of service is multiplied by its statutory rate in months of wage, then any cap and resignation fraction is applied. Part years are pro rata where the law allows it.

  • Applies to Saudi and non-Saudi private-sector employees alike. GOSI pension contributions are separate and do not replace the award.
  • Whether housing and other allowances belong in the wage is the most common dispute. The law defines wage as the actual wage; HRSD guidance describes basic wage plus due increases. Enter the figure your contract or HR uses and compare.
  • Intermittent unpaid absences of up to 20 days a year count as continuous service (Article 2); longer unpaid leave suspends the contract (Article 116). Enter unpaid days beyond that allowance.
  • The employer may deduct work-related debts from the award (Article 88).

Not modelled: contractual terms better than the law, free-zone or government schemes, deductions for amounts owed, and court or settlement outcomes. Results are estimates, not legal advice.

Saudi Arabia gratuity FAQs

How is end-of-service calculated in Saudi Arabia?

Under Article 84 of the Labor Law, the award is half a month's wage for each of the first five years of service and one month's wage for each year after that, based on the last wage. Part years are paid pro rata. There is no cap.

How much gratuity do I get if I resign in Saudi Arabia?

Article 85: nothing with less than 2 years of service; one third of the award with 2 to 5 years; two thirds with more than 5 but less than 10 years; the full award with 10 years or more.

Did the 2025 Saudi Labor Law amendments change the end-of-service award?

No. The amendments in force from 19 February 2025 changed the resignation procedure and other articles, but Articles 84 to 88 on the end-of-service award were not amended.

Is housing allowance included in the Saudi end-of-service award?

The law defines wage as the actual wage, which includes fixed allowances such as housing, and Article 86 only lets the parties exclude commissions and variable pay. In practice many employers calculate on basic plus housing and transport. Check your contract.

When must the end-of-service award be paid?

Within one week of the contract ending if the employer ended it, and within two weeks if the employee ended it (Article 88).

Do women get the full award if they resign after marriage or childbirth?

Yes. Article 87 gives the full award to a female worker who ends her contract within six months of marriage or within three months of giving birth, and to any worker who leaves because of force majeure.

Sources

01
Labor Law, Royal Decree M/51 — Articles 84–88 ↗Bureau of Experts at the Council of Ministers (laws.boe.gov.sa). Official consolidated law text. Articles 84–88 carry no amendment marker after the 2025 changes.
02
Labor Law (English translation) ↗Ministry of Human Resources and Social Development. Official translation. Article 2 wage definition; Article 85 resignation fractions; Article 87 exceptions.
03
End-of-service award ↗HRSD knowledge centre. Official guidance on calculation and the wage used.
04
KSA Labour Law amendments: resignations ↗Clyde & Co, March 2025. Law-firm summary of Royal Decree M/44, in force 19 Feb 2025; resignation procedure changed, award fractions not.
05
Saudi end-of-service award ↗Teamed, reviewed 16 Oct 2026. Secondary cross-check of tiers, fractions and payment deadlines.

Changelog

  • 23 October 2026 Saudi Arabia, Qatar, Oman, Kuwait and Bahrain calculators published. Saudi and Bahrain rules checked against official law text; Qatar, Oman and Kuwait against two or more professional or press sources because the official portals did not load.

Related tools

Saudi Arabia: what resigning costsYear-by-year table and the threshold datesUAE Gratuity Calculator21/30-day rule, 2-year capQatar Gratuity Calculator21 days of basic wage per year, minimum (0.70 months)Kuwait Gratuity Calculator15 days → 1 month per year: years 1–5, then every year after
About the analysis

Researched and edited by Nikhil Shrivastava

KalQLater publishes data-led explanations built from public datasets. The goal is not to force a dramatic conclusion, but to show what the available evidence supports, where datasets disagree, and what they cannot prove.

Trust & transparency

Methodology →

Editorial standards →

Corrections policy →