End-of-service gratuity calculator
Estimate the end-of-service gratuity for private-sector workers in Saudi Arabia under Articles 84 and 85 of the Labor Law: half a month’s wage for each of the first five years, a full month for every year after that, plus the resignation factor.
How the calculator works
- 01Enter the period
Choose the input calendar (Gregorian or Hijri) and set the employment start and end dates.
- 02Add wage and reason
Type the last monthly wage and choose whether the relationship ended by resignation or employer termination.
- 03Review the breakdown
Press “Calculate gratuity” to see the service period, base gratuity, Article 85 factor and final amount.
How is end-of-service gratuity calculated in the private sector?
Under Article 84 of the Saudi Labor Law, when the employment relationship ends the worker is entitled to a gratuity based on the last wage: half a month’s wage for each of the first five years and a full month’s wage for each following year. Fractions of a year are prorated by days over 365.
Calculation steps used by this tool
- Measure the service period in days between the start and end dates, then convert it to years by dividing by 365.
- Compute the base gratuity: half a month for each of the first 5 years plus one full month for every year after that, using the last monthly wage.
- Apply the Article 85 factor to resignations: nothing under two years, one third from 2 to under 5, two thirds from 5 to under 10, and the full gratuity from 10 years onwards.
- When the employer terminates the relationship, the worker is entitled to the full gratuity with no reduction.
Worked example
A worker resigns after 7 years with a last monthly wage of SAR 9,000: the first 5 years = 5 × half a month = two and a half months (SAR 22,500), and the remaining 2 years = 2 × a full month = SAR 18,000, so the base gratuity is SAR 40,500. Because the resignation came after 5 but before 10 years, two thirds applies and the amount due is SAR 27,000.
Limits of the calculation
The tool does not cover other entitlements such as leave pay, notice compensation or unpaid wages, and it cannot decide whether a wage includes fixed allowances under a specific contract. Saudi employees covered by GOSI may also fall under the end-of-service system adopted in 2024. Treat the result as a starting point and review it with a specialist before relying on it.
Frequently asked questions
Is the result final and legally binding?
No. The calculator provides an arithmetic estimate under Articles 84 and 85; it is not a legal ruling or an official decision. Review the settlement with the employer or a legal advisor.
How are fractions of the final year handled?
Fractions are prorated: the remaining days are divided by 365 and added to the whole years inside the gratuity formula. The amount is displayed rounded to two decimals.
Why is the amount lower for a resignation?
Article 85 grants a resigning worker a graduated share of the gratuity based on service length, while employer termination grants the full gratuity. The applied factor appears in the breakdown.
Do allowances count towards the last wage?
The calculation uses the last monthly wage you enter, which is usually the basic salary plus any pay considered part of the wage by law or contract. Check your contract before entering the figure.
I am a Saudi employee covered by GOSI. Does this apply?
Not necessarily. The new end-of-service system adopted in 2024 for Saudi GOSI subscribers may change how the benefit is computed and distributed, so treat this as a general reference and check with GOSI.
Does it cover domestic workers or non-Saudis?
The tool targets employment contracts governed by the Labor Law in the private sector. Domestic workers follow a separate regulation, and some cases differ by nationality and contract type.