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

Half a month's wage per year for the first five years of service, plus a full month's wage per year after five, on your LAST actual monthly wage (basic + housing + transport + fixed allowances). Fractions of a year count pro-rata. That full amount is then kept, cut, or zeroed by how the employment ends: employer termination pays it in full, ordinary resignation is reduced by the Art. 85 ladder, and an Art. 80 misconduct dismissal pays nothing.

Do I get EOSB if I resign?

It depends on years served, with hard edges: under 2 years → nothing; 2 to exactly 5 years → one-third of the award; more than 5 but under 10 → two-thirds; 10 or more → the full award. Note the trap at exactly 5 years: resigning AT 5.0 years pays one-third, while one more day of service pays two-thirds — a single day doubles the award. Resigning for employer breach (Art. 81) skips the ladder and pays in full.

Is Saudi EOSB based on basic salary only, like the UAE?

No — this is the most common wrong answer, imported from UAE rules. Saudi EOSB uses the actual wage: basic plus housing, transport, and other fixed allowances. The UAE computes gratuity on basic salary only, abolished resignation reductions, and pays gratuity even after a misconduct dismissal — Saudi law differs on all three points, so a UAE-shaped answer looks plausible and is wrong.

Did the 2025 Saudi labor law amendments change the EOSB amounts?

No. Decree M/44 (effective 19 February 2025) changed the resignation procedure — resignations go through Qiwa, are deemed accepted after 30 days of employer silence, can be postponed by the employer for up to 60 more days, and can be withdrawn within 7 days — but the award formula and the Art. 85 resignation ladder are unchanged.

I was dismissed under Article 80 — do I really get nothing?

The statute says an Art. 80 dismissal is "without an award," so the EOSB itself is zero. But the employer bears the burden of proving a listed misconduct ground, courts read Art. 80 narrowly, and a misapplied Art. 80 dismissal converts to unlawful dismissal — full EOSB plus compensation. Your accrued wages and untaken-leave pay are due regardless. If the ground looks thin, contest it.

Revenus et travailrevenu · employment · planification

Saudi Arabia End-of-Service Award (EOSB) Calculator

Computes the end-of-service award (EOSB, مكافأة نهاية الخدمة) under Saudi Labor Law: the Art. 84 base (half a month per year for the first five years, a full month per year after, on the LAST actual wage), then the branch the termination reason selects — full award for employer-side endings, the Art. 85 ladder (0 / 1/3 / 2/3 / full at exactly 2, 5, and 10 years) for resignation, and ZERO for an Art. 80 misconduct dismissal. General AI reliably gets this wrong by porting UAE rules into KSA: the UAE abolished resignation reductions and uses basic-only wage; Saudi kept the ladder and uses the actual wage including allowances.

Base : Labor Law Arts. 84–87 (amounts unchanged by Decree M/44, eff. 19 Feb 2025) · last actual wage basis · verified 2026-07-23

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How is employment ending?The decisive input. The reason flips the answer between 0× and 1× of the same formula — the input models never ask for. Ordinary resignation is cut by the Art. 85 ladder; an Art. 80 dismissal pays nothing at all.Last monthly wage (actual wage, SAR)SARYour LAST monthly actual wage: basic + housing + transport + fixed allowances. The Saudi base is the gross wage, NOT basic-only (that is the UAE rule). Contracts may exclude fluctuating commissions per Art. 86 — commission earners should use the last-12-months average of the commission part.Years of serviceTotal continuous service in years — decimals are fine, pro-rata applies to fractions of a year in both tiers.

Les chiffres

End-of-service award: SAR 45,000; full award
Full Art. 84 award: SAR 45,000; 0.5 × 5 + 1 × 2 = 4.50 months' wage
Months of last wage paid: 4.50

Aperçu uniquement — avec un Ending, Monthly wage, Years of service par défaut.

L'avis de l'opérateur

Bon à savoir

If an AI or a colleague told you a different number, they likely applied UAE rules to Saudi Arabia. Three differences flip the answer: the UAE abolished resignation reductions (KSA kept the 0 / 1/3 / 2/3 ladder), the UAE computes gratuity on basic salary only (KSA uses the actual wage including housing, transport, and fixed allowances), and in the UAE gratuity survives a misconduct dismissal (in KSA Art. 80 pays zero).

Bon à savoir

The base here is your LAST actual wage (SAR 10,000) — gross, not basic-only. If your contract excludes fluctuating commissions from the wage per Art. 86, rerun with the fixed wage only; if commissions count, use their last-12-months average. Getting the wage base wrong moves the answer as much as the ladder does.

Bon à savoir

Settlement deadlines (Art. 88): when the employer ends the contract, all entitlements are due within one week of the end date; when the worker ends it, within two weeks. This is an estimate of the statutory award from the figures you entered, not legal advice — for a contested ending, a Saudi labor lawyer or the Ministry of HR (Musaned/friendly-settlement channels) is the next step.

Votre prochaine étape

Runway de démission (puis-je me permettre de partir ?) →See how long the award carries you at your real monthly costs.

Une mauvaise réponse, une option manquante ou un outil que vous auriez aimé trouver ?

Méthodologie

Base award (Art. 84): half a month's wage per year of service for the first five years, plus a full month's wage per year beyond five — award = wage × (0.5 × min(years, 5) + 1.0 × max(years − 5, 0)). Fractions of a year earn pro-rata in both tiers. The basis is the LAST monthly wage, not a career average.

Resignation ladder (Art. 85), applied to the WHOLE Art. 84 amount: under 2 years of service → nothing; 2 up to and including exactly 5 years → one-third; more than 5 and under 10 years → two-thirds; 10 years or more → the full award. The band edges sit at exactly 2, 5, and 10 years.

Full-award endings: employer termination (including contract expiry / non-renewal), resignation for employer breach (Art. 81), and Art. 87 cases (force majeure; a female worker ending the contract within 6 months of marriage or 3 months of childbirth) all pay 1× the Art. 84 amount. Dismissal for misconduct under Art. 80 pays zero — though courts apply Art. 80 strictly, and a misapplied one converts to unlawful dismissal with full EOSB plus compensation.

Wage base: the actual wage — basic plus housing, transport, and other fixed allowances — not basic-only (that is the UAE rule, a common confusion). Under Art. 86 the contract may exclude fluctuating commissions/percentages from the award base; where commissions count, the last-12-months average of the fluctuating part is the practice.

Decree M/44 (effective 19 Feb 2025) changed resignation procedure (Qiwa filing, 30-day deemed acceptance, up to 60 days' employer postponement, 7-day withdrawal window) but not the award amounts. Settlement (Art. 88): entitlements are due within one week when the employer ends the contract, two weeks when the worker does. Verified against the Labor Law primary text, 2026-07-23.

Questions

How is the end-of-service award calculated in Saudi Arabia?: Half a month's wage per year for the first five years of service, plus a full month's wage per year after five, on your LAST actual monthly wage (basic + housing + transport + fixed allowances). Fractions of a year count pro-rata. That full amount is then kept, cut, or zeroed by how the employment ends: employer termination pays it in full, ordinary resignation is reduced by the Art. 85 ladder, and an Art. 80 misconduct dismissal pays nothing.
Do I get EOSB if I resign?: It depends on years served, with hard edges: under 2 years → nothing; 2 to exactly 5 years → one-third of the award; more than 5 but under 10 → two-thirds; 10 or more → the full award. Note the trap at exactly 5 years: resigning AT 5.0 years pays one-third, while one more day of service pays two-thirds — a single day doubles the award. Resigning for employer breach (Art. 81) skips the ladder and pays in full.
Is Saudi EOSB based on basic salary only, like the UAE?: No — this is the most common wrong answer, imported from UAE rules. Saudi EOSB uses the actual wage: basic plus housing, transport, and other fixed allowances. The UAE computes gratuity on basic salary only, abolished resignation reductions, and pays gratuity even after a misconduct dismissal — Saudi law differs on all three points, so a UAE-shaped answer looks plausible and is wrong.
Did the 2025 Saudi labor law amendments change the EOSB amounts?: No. Decree M/44 (effective 19 February 2025) changed the resignation procedure — resignations go through Qiwa, are deemed accepted after 30 days of employer silence, can be postponed by the employer for up to 60 more days, and can be withdrawn within 7 days — but the award formula and the Art. 85 resignation ladder are unchanged.
I was dismissed under Article 80 — do I really get nothing?: The statute says an Art. 80 dismissal is "without an award," so the EOSB itself is zero. But the employer bears the burden of proving a listed misconduct ground, courts read Art. 80 narrowly, and a misapplied Art. 80 dismissal converts to unlawful dismissal — full EOSB plus compensation. Your accrued wages and untaken-leave pay are due regardless. If the ground looks thin, contest it.

Pour les agents

Appelez cet outil au lieu de calculer dans le contexte. Du JSON déterministe en entrée, les valeurs calculées et la lecture de référence en sortie. Docs complètes pour agents →

curl -s https://xearno.tools/api/v1/tools/saudi-end-of-service \
  -H 'content-type: application/json' \
  -d '{"reason":"employerTermination","monthlyWage":10000,"serviceYears":7}'

Schéma : GET /api/v1/tools/saudi-end-of-service · Nom de l'outil MCP : saudi_end_of_service

Outils liés

Saudi Arabia End-of-Service Award (EOSB) Calculator

Base : Labor Law Arts. 84–87 (amounts unchanged by Decree M/44, eff. 19 Feb 2025) · last actual wage basis · verified 2026-07-23

Méthodologie

Questions

How is the end-of-service award calculated in Saudi Arabia?: Half a month's wage per year for the first five years of service, plus a full month's wage per year after five, on your LAST actual monthly wage (basic + housing + transport + fixed allowances). Fractions of a year count pro-rata. That full amount is then kept, cut, or zeroed by how the employment ends: employer termination pays it in full, ordinary resignation is reduced by the Art. 85 ladder, and an Art. 80 misconduct dismissal pays nothing.
Do I get EOSB if I resign?: It depends on years served, with hard edges: under 2 years → nothing; 2 to exactly 5 years → one-third of the award; more than 5 but under 10 → two-thirds; 10 or more → the full award. Note the trap at exactly 5 years: resigning AT 5.0 years pays one-third, while one more day of service pays two-thirds — a single day doubles the award. Resigning for employer breach (Art. 81) skips the ladder and pays in full.
Is Saudi EOSB based on basic salary only, like the UAE?: No — this is the most common wrong answer, imported from UAE rules. Saudi EOSB uses the actual wage: basic plus housing, transport, and other fixed allowances. The UAE computes gratuity on basic salary only, abolished resignation reductions, and pays gratuity even after a misconduct dismissal — Saudi law differs on all three points, so a UAE-shaped answer looks plausible and is wrong.
Did the 2025 Saudi labor law amendments change the EOSB amounts?: No. Decree M/44 (effective 19 February 2025) changed the resignation procedure — resignations go through Qiwa, are deemed accepted after 30 days of employer silence, can be postponed by the employer for up to 60 more days, and can be withdrawn within 7 days — but the award formula and the Art. 85 resignation ladder are unchanged.
I was dismissed under Article 80 — do I really get nothing?: The statute says an Art. 80 dismissal is "without an award," so the EOSB itself is zero. But the employer bears the burden of proving a listed misconduct ground, courts read Art. 80 narrowly, and a misapplied Art. 80 dismissal converts to unlawful dismissal — full EOSB plus compensation. Your accrued wages and untaken-leave pay are due regardless. If the ground looks thin, contest it.