---
title: "Saudi Arabia (KSA) Gratuity Calculator"
description: "Calculate the Saudi end-of-service award under Articles 84–85 of the Labor Law: half a month’s wage a year for five years, a month after, less any resignation cut."
url: "https://www.nastalent.com/hub/tools/gratuity-calculator/ksa"
updated: "2026-10-20"
rules_verified: "2026-07-20"
type: "calculator (runs in the browser)"
---

# Saudi Arabia (KSA) Gratuity Calculator

> Calculate the Saudi end-of-service award under Articles 84–85 of the Labor Law: half a month’s wage a year for five years, a month after, less any resignation cut.

**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).

Interactive calculator: https://www.nastalent.com/hub/tools/gratuity-calculator/ksa

Calculations run in your browser. If you choose ‘Send me this result’, we email it to you and keep a copy to reply.

## How to use it

1. **Enter the wage.** Enter the monthly wage in SAR that your end-of-service award will be based on.
2. **Enter length of service.** Enter completed years and additional months; part years are prorated.
3. **Choose how the contract ended.** Select employer-ended, resignation, during probation or an Article 80 dismissal; the calculator applies the matching rule.

## 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.

---
Source: Nas Talent Resources Hub — https://www.nastalent.com/hub/tools/gratuity-calculator/ksa
Publisher: Nas Talent (SOURCET MANAGEMENT CONSULTING CO. L.L.C), Dubai, UAE.