Free tool · End of service
Saudi Arabia Gratuity Calculator (2026): End of Service Benefits
Calculate your end-of-service gratuity in Saudi Arabia under Saudi Labor Law (Royal Decree M/51), Articles 84 & 85 - which salary counts, what resigning changes, the cap, and a worked example.
Quick answer
Calculate your gratuity
Your last full wage: basic salary plus housing and other fixed allowances.
Estimated gratuity
SAR 45,000
- Half a month's wage per year (years 1-5) × 5SAR 25,000
- One month's wage per year (after year 5) × 2SAR 20,000
Estimate only - your contract, unpaid leave and deductions can change the final figure. Confirm with your employer or the labour ministry.
How gratuity is calculated in Saudi Arabia
| Service period | Award |
|---|---|
| 0-5 | Half a month's wage per year (years 1-5) |
| 5+ | One month's wage per year (after year 5) |
- Salary used
- Your last full wage: basic salary plus housing and other fixed allowances.
- Minimum service
- None - pro-rata from day one
- Maximum award
- No cap
- When it's paid
- Within one week of the contract ending, or two weeks if you resigned (Article 88).
- Law
- Saudi Labor Law (Royal Decree M/51), Articles 84 & 85
If you resign
| Years completed | Share of the award |
|---|---|
| Under 2 | Nothing |
| 2-5 | One third |
| 5-10 | Two thirds |
| 10+ | Full award |
Worked example
Salary used for gratuity SAR 10,000, 7 years of service, contract ended by the employer:
- Half a month's wage per year (years 1-5) × 5SAR 25,000
- One month's wage per year (after year 5) × 2SAR 20,000
- Total gratuitySAR 45,000
Rules worth knowing
- If your employer ends the contract (or it expires) you get the full award. On resignation: nothing under 2 years, one third for 2-5 years, two thirds for 5-10 years, and the full award after 10 years.
- Article 87 keeps the full award for resignations caused by force majeure, and for women who resign within six months of marriage or three months of giving birth.
- The gratuity is a legal right and cannot be signed away in the contract.
Frequently asked questions
How is gratuity calculated in Saudi Arabia?
Under Saudi Labor Law (Royal Decree M/51), Articles 84 & 85: Half a month's wage per year (years 1-5), then One month's wage per year (after year 5). Your last full wage: basic salary plus housing and other fixed allowances.
How much gratuity for 7 years on a SAR 10,000 salary?
About SAR 45,000 when the contract ends or the employer terminates it, using the formula above.
Do I get gratuity if I resign in Saudi Arabia?
Yes, but the share depends on your service: nothing under 2 years, then 2+: One third, 5+: Two thirds, 10+: Full award (years completed: share of the award).
What is the minimum service to qualify for gratuity?
There is no minimum when the contract ends - the award is calculated pro-rata on your actual service.
Is there a maximum gratuity amount?
The law sets no cap on the award.
When must the gratuity be paid?
Within one week of the contract ending, or two weeks if you resigned (Article 88).
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