How the End of Service Calculator Saudi Arabia Works
The end of service calculator Saudi Arabia employees rely on is designed around one idea: your end of service benefit (EOSB), sometimes called gratuity or indemnity, should take seconds to estimate, not hours of manual math. Enter your employment start date, your last working day, and your basic monthly salary in Saudi Riyals, then choose whether you resigned or your contract was terminated by the employer. The end of service calculator instantly applies the rules of the Saudi Labor Law and shows your estimated award with a full breakdown.
Our end of service calculator measures your service in calendar days and converts them to years by dividing by 365, so partial years are pro-rated fairly. That means two years and seven months of service is calculated as roughly 2.58 years, and every day you worked counts toward the final figure. The method mirrors how most HR departments and the Ministry of Human Resources and Social Development (HRSD) approach end of service calculations in practice.
Article 84 of Saudi Labor Law: Termination Benefits
Article 84 of the Saudi Labor Law is the foundation of every end of service calculator. When the employment relationship ends — whether the employer terminates the contract, a fixed-term contract expires, or the employee reaches retirement — the worker is entitled to half a month's wage for each of the first five years of service, and a full month's wage for every year after the fifth year. The end of service calculator applies these two tiers automatically and shows each component separately.
For example, an employee who served seven years earns five half-month awards (2.5 months of salary) for the first tier, plus two full-month awards for the second tier, totaling 4.5 months of basic salary. Article 84 also requires pro-rating for fractions of a year, which is exactly what this end of service calculator does when it converts your days of service into a decimal year figure.
Article 85 of Saudi Labor Law: Resignation Rules
Resignation changes the math, and a good end of service calculator must handle it. Under Article 85 of the Saudi Labor Law, an employee who resigns receives nothing if their service is shorter than two years. Between two and five years of service, the resigning employee is entitled to one third of the full Article 84 award. Between five and ten years, the entitlement rises to two thirds of the award. Only after ten full years of service does a resigning employee receive the complete end of service benefit.
When you select resignation in the end of service calculator above, the tool first computes the full Article 84 award, then applies the correct Article 85 fraction based on your years of service. The breakdown card shows the full award alongside the reduction that applies, so you can see exactly how the final number was reached. Note that certain resignation scenarios, such as leaving due to force majeure or specific protections for female workers around marriage and childbirth, can still qualify for the full award under Article 87 — always check the official text for exceptions.
Is EOSB Calculated on Basic Salary or Gross Salary?
One of the most common questions about any end of service calculator is which salary figure to use. Article 84 refers to the last wage, and the prevailing HRSD guidance interprets the wage for end of service purposes as the basic salary plus fixed allowances such as housing and transportation, while excluding variable pay like commissions, bonuses, and overtime. In practice, many employers calculate on basic salary alone, which is the conservative default this end of service calculator uses.
If your contract includes fixed monthly allowances, you may want to run the end of service calculator twice: once with your basic salary and once with your basic plus fixed allowances. The difference can be significant over a long career, and your final settlement should follow the definition of wage in your contract and the latest HRSD interpretations.
Worked Example Using the End of Service Calculator
Imagine an employee named Ahmed who started work on 1 March 2016 and left on 1 March 2024, a full eight years of service, with a basic monthly salary of 8,000 SAR. If Ahmed's contract was terminated by the employer, the end of service calculator works as follows: the first five years earn half a month each, which is 5 × 4,000 = 20,000 SAR. The remaining three years earn a full month each, which is 3 × 8,000 = 24,000 SAR. His total end of service award is 44,000 SAR.
Now suppose Ahmed resigned instead. With eight years of service, Article 85 grants him two thirds of the full award, so the end of service calculator returns 44,000 × 2/3 ≈ 29,333 SAR. Had Ahmed resigned after only three years, he would receive one third: the full award at three years is 3 × 4,000 = 12,000 SAR, so his benefit would be about 4,000 SAR. And if he resigned at 18 months, the award would be zero. You can reproduce every one of these scenarios in seconds with the end of service calculator above.
When and How End of Service Benefits Are Paid
Under Article 88 of the Saudi Labor Law, the employer must settle all dues, including the end of service award, within one week when the employer ends the contract, and within two weeks when the employee resigns. The end of service calculator gives you the figure to expect; the law gives you the deadline to expect it by. Employers typically include the award in the final settlement along with accrued leave pay and any outstanding salary.
Keep in mind that the end of service benefit is not subject to GOSI deductions or income tax in Saudi Arabia, so the figure shown by the end of service calculator is generally the net amount you should receive. Domestic workers have separate rules under the domestic labor regulations, and some free-zone or special economic arrangements may differ.
Disclaimer and Official Sources
This end of service calculator is an educational estimation tool, not legal advice. Labor law outcomes depend on your contract, your employer's policies, and the official interpretation of the Saudi Labor Law at the time of settlement. Before making financial decisions, verify your result with your HR department, consult the official text of the law through the Ministry of Human Resources and Social Development (hrsd.gov.sa), or seek advice from a licensed legal professional in the Kingdom.