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Home›Gratuity Calculator›Saudi Arabia›Resignation
Saudi Arabia · End-of-service · Resignation

Resigning in Saudi Arabia: what it costs your end-of-service award, year by year

Under Article 85 of the Labor Law, a resignation before 10 years pays a fraction of the award. The fractions jump at 2, 5 and 10 years, so the date you resign can be worth more than a raise. On a SAR 10,000 wage, crossing the 10-year line adds about SAR 25,000 overnight.

Researched by Nikhil ShrivastavaReviewed by Pending independent reviewLaw last verified 23 October 2026Methodology · Report an error
Nothingpaid on resignation, under 2 years
One thirdpaid on resignation, 2 to 5 years
Two thirdspaid on resignation, 5 to 10 years
Fullpaid on resignation, 10 years or more
Get your exact figure

Pick "I resigned" in the calculator and enter your real dates.

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What resigning costs, by years of service

Months of wage: full award vs resignation, and the cost on SAR 10,000 a month
ServiceShare paidFull award (months)On resignation (months)Lost by resigning
1 yearNothing0.500.00SAR 5,000
2 yearsOne third1.000.33SAR 6,667
3 yearsOne third1.500.50SAR 10,000
4 yearsOne third2.000.67SAR 13,333
5 yearsOne third2.500.83SAR 16,667
6 yearsTwo thirds3.502.33SAR 11,667
7 yearsTwo thirds4.503.00SAR 15,000
8 yearsTwo thirds5.503.67SAR 18,333
9 yearsTwo thirds6.504.33SAR 21,667
10 yearsFull7.507.50SAR 0
12 yearsFull9.509.50SAR 0
15 yearsFull12.5012.50SAR 0

Calculated by KalQLater from Articles 84 and 85 of the Labor Law.

Claim vs reality: "a few weeks either way doesn't matter"

Finding: at the thresholds it matters a lot. Resigning one day after the 10 years mark instead of one day before is worth SAR 25,046 on a SAR 10,000 wage. Check your exact service date, including your notice period, before you hand in a resignation.

Resignation award one day before and one day after each threshold, SAR 10,000 a month
ThresholdOne day beforeOne day afterDifference
2 yearsSAR 0SAR 3,338SAR 3,338
5 yearsSAR 8,329SAR 16,685SAR 8,356
10 yearsSAR 49,982SAR 75,027SAR 25,046

How resignation works

  • Since 19 February 2025, an employer must respond to a resignation within 30 days. If it does not, the resignation is deemed accepted at the end of that period (Article 79, as amended).
  • The employer may delay acceptance by up to 60 days for work reasons, but only with a written, reasoned explanation given before the first 30 days end.
  • Resignation is now expressly a valid way to end a fixed-term contract (Article 74). The Article 85 fractions still apply to the award.

When you still get the full amount

  • Force majeure beyond your control: full award (Article 87).
  • A woman who ends her contract within six months of marriage or three months of giving birth: full award (Article 87).
  • Leaving because the employer breached its obligations, under Article 81, is treated as the employer ending the contract, so the full award applies; you will need evidence.

FAQs

How much end-of-service do I get if I resign in Saudi Arabia after 3 years?

One third of the full award. Full award for 3 years = 3 × half a month = 1.5 months' wage; one third is 0.5 months. On SAR 10,000 that is SAR 5,000.

Do I get end-of-service if I resign before 2 years in Saudi Arabia?

No. Article 85 gives nothing to an employee who resigns with less than two consecutive years of service, unless an Article 87 exception applies.

Is resignation at exactly 5 years one third or two thirds?

Article 85 gives one third for two to five years and two thirds for more than five and under ten years, so you need to pass five full years to reach two thirds.

Did the 2025 amendments change end-of-service on resignation?

No. They changed the resignation procedure (Articles 74 and 79), not the Article 84–85 award or fractions.

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.

Related

Saudi Arabia Gratuity CalculatorYour exact figure, with the workingKuwait on resignationThe other Gulf country that cuts gratuityUAE gratuity on resignationNo cut since 2022
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.

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