UAE Gratuity Calculator
UAE end-of-service gratuity worked to the legal formula, with the 24-month cap applied.
Free tool · Employees & employers
Saudi Arabia (KSA) Gratuity Calculator
Estimate the end-of-service award under Articles 84 and 85 of the Saudi Labor Law, including the reduction that applies on resignation.
Fix the highlighted field to see a result.
Estimated gratuity
Full entitlement
Reduction applied
Cap
Formula: half a month’s wage per year for years 1–5 and one month per year after, prorated for part years, no legal cap; resignation bands per Article 85. Estimate only: confirm against HRSD / Qiwa guidance and your final settlement.
The link includes the values you entered.
The rule in brief
Saudi end-of-service pay is half a month’s wage for each of the first five years and a full month for each year after, prorated for part years, with no legal cap. On resignation the award is reduced: nothing under two years, one-third from two to five years, two-thirds over five and under ten, and the full award at ten years or more (Articles 84–85, Saudi Labor Law).
How the Saudi end-of-service calculation works
Under Articles 84, 85 and 87 of the Saudi Labor Law, enforced by the Ministry of Human Resources and Social Development (HRSD), the end-of-service award accrues for every part of each year worked and is then reduced depending on how the contract ended.
- Years 1–5: half a month’s wage per year.
- Year 6 onward: a full month’s wage per year.
- Part years: prorated. There is no one-year minimum when the employer ends the contract after probation.
- Cap: none, unlike the UAE’s two-year limit.
- Resignation (Article 85): nothing under 2 years; one-third from 2 to 5 years (5 years exactly is in this band); two-thirds over 5 and under 10 years; the full award at 10 years or more.
- No award: when the contract ends during probation, or when the worker is dismissed under Article 80.
- Article 87: some resignations still receive the full award, for example force majeure. Confirm your case with HRSD.
- Wage basis: the last wage. Whether fixed allowances are included depends on the contract and HRSD guidance, so confirm before relying on an estimate.
Worked examples
| Case (SAR 10,000 a month) | Calculation | Award |
|---|---|---|
| 9 months, ended by the employer after probation | 0.75 year × 0.5 month × 10,000 | SAR 3,750 |
| 5 years exactly, resigned | 2.5 months × 10,000 = 25,000; one-third | SAR 8,333 |
| 7 years, ended by the employer | (5 × 0.5) + (2 × 1) = 4.5 months | SAR 45,000 |
| 7 years, resigned | 45,000; two-thirds | SAR 30,000 |
| 10 years, resigned | (5 × 0.5) + (5 × 1) = 7.5 months; full award | SAR 75,000 |
Source: Articles 84, 85 and 87, Saudi Labor Law, HRSD. Rules last verified 20 July 2026; calculation corrected 10 October 2026.
Frequently asked questions
How is end-of-service pay calculated in Saudi Arabia?
Half a month’s wage for each of the first five years and a full month for each year after, prorated for part years, with no legal cap. Source: Articles 84 and 85, Saudi Labor Law.
Do I get anything if I leave before one year?
If the employer ends the contract after probation, yes: the award is prorated, so 9 months on SAR 10,000 gives about SAR 3,750. If you resign before two years, or the contract ends during probation, no award is due.
Does resigning reduce the award?
Yes: nothing under 2 years, one-third from 2 to 5 years (including exactly 5), two-thirds over 5 and under 10 years, and the full award at 10 years or more. Article 87 gives the full award in some resignation cases; confirm with HRSD.
Is Saudi end-of-service pay capped?
No. Unlike the UAE’s two-year cap, the award keeps accruing at one month’s wage per year beyond the first five.
Is it based on basic salary or total wage?
It is based on the last wage. Many employers include fixed allowances such as housing and transport; confirm the definition in your contract and with HRSD or Qiwa.
Estimates only, not legal or financial advice. Rules last verified 20 July 2026; page updated 20 October 2026; see our editorial policy.
Related
Hiring in Saudi Arabia in 2026: Saudization, Salaries and Where the Talent Is
A practical read on the Saudi hiring market: Nitaqat obligations, salary movement, and how employers actually find talent for Vision 2030 growth.
Recruitment Cost Calculator
Compare the true cost of job boards, agencies and per-role sourcing for your specific role.
More calculators
Recruitment Cost Calculator
Compare the true cost of job boards, agencies and per-role sourcing for your specific role.
UAE Gratuity Calculator
UAE end-of-service gratuity worked to the legal formula, with the 24-month cap applied.
Qatar Gratuity Calculator
Qatar end-of-service gratuity at the statutory minimum of three weeks per year.
Hiring in the UAE or KSA
Get a validated shortlist, from AED 299 per role.
We build end-of-service liability into every salary conversation before you make an offer, across the UAE, KSA and wider GCC.
Looking for a job
Know your number before you move.
Register once and our recruiters match you to roles that fit your experience, salary expectations and location.