Saudi Arabia End of Service Calculator 2026
Instantly compute your end‑of‑service benefit. Based on the Saudi Labor Law (Royal Decree No. M/51), with 2026 rules — no incorrect salary cap applied.
Calculate Your End of Service Benefit
Use the calculator below to estimate your Saudi Arabia gratuity based on the Saudi Labor Law (Royal Decree No. M/51). Enter your details to see your estimated payout.
What Is End-of-Service Gratuity in Saudi Arabia?
The end-of-service benefit (EOSB), commonly known as gratuity, is a mandatory lump-sum payment that private-sector employers in Saudi Arabia must pay when an employee's contract ends. The benefit is governed by the Saudi Labor Law under Royal Decree No. M/51, specifically Articles 84, 85, and 87.
Both Saudi nationals and expatriates in the private sector qualify for gratuity after completing at least one continuous year of service. Public-sector government employees are covered by a separate pension system and are not subject to this specific law.
How to Calculate End of Service in Saudi Arabia
The law uses a two-tier formula based on total years of service, which remains unchanged for 2026:
Beyond 5 years: Gratuity = (Wage ÷ 2) × 5 + Wage × (Years − 5)
Daily wage: Monthly Wage ÷ 30
In practice: for each of your first five years, you earn half a month's wage as gratuity. For every year beyond five, you earn a full month's wage. Partial years (months) are calculated proportionally, not rounded down.
What Counts as "Wage"?
Saudi Labor Law calculates gratuity based on your "last wage" — not just your "last basic wage." This distinction is critical because the law defines "wage" more broadly than base salary.
Excluded from Wage: Variable or discretionary pay such as sales commissions, one-off bonuses, and overtime.
Some simplified calculators use "basic salary only," which understates gratuity for employees whose contracts split pay into basic + housing + transport. If your contract lists fixed allowances, add them to your basic salary before entering the figure into the calculator above. Because interpretations vary by contract, confirm exact wage components with your HR department or the Ministry of Human Resources and Social Development (MHRSD).
Gratuity for Resignation
If you resign, your gratuity is scaled down based on your total service duration, as defined in Article 85:
| Service Duration at Resignation | Eligibility Factor | Effective Gratuity |
|---|---|---|
| Less than 2 years | 0% | No Benefit |
| 2 years to less than 5 years | ⅓ (33.33%) | Partial Benefit |
| 5 years to less than 10 years | ⅔ (66.67%) | Partial Benefit |
| 10 years or more | 100% | Full Benefit |
Gratuity for Termination and End of Contract
If you are terminated without cause, or your fixed-term contract ends without renewal, you are entitled to 100% of your computed gratuity from the first year onward — no scaling applies.
| Reason for Leaving | Minimum Service | Eligibility |
|---|---|---|
| Termination without cause | 1 year | 100% Full Benefit |
| End of fixed-term contract | 1 year | 100% Full Benefit |
| Termination for cause (Article 80) | Any | No Benefit |
| Resignation (10+ years) | 10 years | 100% Full Benefit |
| Resignation (5–10 years) | 5 years | ⅔ (66.67%) |
| Resignation (2–5 years) | 2 years | ⅓ (33.33%) |
Article 80 — Termination for Cause
Under Article 80, an employer may dismiss an employee with zero gratuity for serious violations. These include assaulting a supervisor, causing significant damage to company property, disclosing confidential information, or working for a competitor without permission. If you believe you were wrongly dismissed under Article 80, you can file a complaint with the MHRSD.
Is There a Maximum Cap on Saudi Gratuity?
Using a UAE-style cap on a Saudi employee's gratuity will severely understate the payout for long-tenured staff. A worker with 30 years of service can lose thousands of riyals to a rule that does not apply to them.
Worked Examples
Example 1: Resignation after 7 years (SAR 8,000 wage)
Next 2 years: 8,000 × 2 = SAR 16,000
Total: SAR 36,000
Eligibility (5–10 yr resign): ⅔ = 66.67%
Gross Gratuity: 36,000 × 0.6667 = SAR 24,000
Example 2: Termination without cause after 3 years (SAR 12,000 wage)
Eligibility (termination): 100%
Gross Gratuity: SAR 18,000