UAE GratuitySaudi Arabia end-of-service award
Article 84 of the Saudi Labor Law (the Ministry of Human Resources’s English text of the 2005 law, read on 13 November 2026): on the end of the employment relation the employer pays an award of half a month’s wage for each of the first five years and one month’s wage for each following year, on the last wage, with part years in proportion.
Full award by last wage and years
| Last wage | 2 years | 5 years | 8 years | 10 years | 20 years |
|---|---|---|---|---|---|
| SAR 3,000 | SAR 3,000 | SAR 7,500 | SAR 16,500 | SAR 22,500 | SAR 52,500 |
| SAR 5,000 | SAR 5,000 | SAR 12,500 | SAR 27,500 | SAR 37,500 | SAR 87,500 |
| SAR 8,000 | SAR 8,000 | SAR 20,000 | SAR 44,000 | SAR 60,000 | SAR 140,000 |
| SAR 12,000 | SAR 12,000 | SAR 30,000 | SAR 66,000 | SAR 90,000 | SAR 210,000 |
| SAR 20,000 | SAR 20,000 | SAR 50,000 | SAR 110,000 | SAR 150,000 | SAR 350,000 |
If the worker resigns (Article 85)
One third of the award after at least two and at most five consecutive years, two thirds after more than five and less than ten years, the full award from ten years. Under two years the article gives no award. Example on a wage of SAR 6,000:
| Years | Full award | On resignation |
|---|---|---|
| 1 | SAR 3,000 | SAR 0 |
| 2 | SAR 6,000 | SAR 2,000 |
| 4 | SAR 12,000 | SAR 4,000 |
| 5 | SAR 15,000 | SAR 10,000 |
| 8 | SAR 33,000 | SAR 22,000 |
| 10 | SAR 45,000 | SAR 45,000 |
| 15 | SAR 75,000 | SAR 75,000 |
Other points
- Article 86: the parties may agree that commissions, sales percentages and similar variable pay are left out of the wage used.
- Article 87: the full award on force majeure; and for a woman ending her contract within six months of marriage or three months of childbirth.
- Article 88: pay within a week of the end of the contract (two weeks if the worker ended it); the employer may deduct work-related debts.
Limits of this page
The text is the 2005 law as the Ministry translated it in 2022. Amendments made since were not read; ask the Ministry before relying on a figure. The Wages Protection and other rules are outside this page.
Common questions
How is the end-of-service award worked in Saudi Arabia?
Article 84: half a month’s wage for each of the first five years and one month’s wage for each following year, on the last wage, with part years in proportion.
What if I resign?
Article 85: one third of the award after at least two and at most five years, two thirds after more than five and less than ten years, and the full award after ten years. The article gives nothing for under two years.
Are there exceptions to the resignation reduction?
Article 87: the full award if the worker leaves because of force majeure beyond his control, and for a woman who ends her contract within six months of marriage or three months of giving birth.
When must it be paid?
Article 88: within one week of the end of the contract, or within two weeks if the worker ended it. The employer may deduct work-related debts.
Is this the current law?
This page uses the Ministry’s English translation of the 2005 law (file of 2022). The law has been amended since; the amendments were not read, so check with the Ministry.
Sources
- Ministry of Human Resources and Social Development (hrsd.gov.sa): Labor Law, Royal Decree No. M/51 of 27 September 2005, the Ministry’s English translation (file made January 2022), Articles 84 to 88, read on 13 November 2026.
Rules read on 13 November 2026 from the Ministry’s English text of the 2005 law. The law was amended later and the amendments were not read, so confirm any figure with the Ministry before relying on it. This site is independent, not connected with the Saudi government, and gives arithmetic, not legal advice.