How is Saudi end-of-service gratuity calculated?

Under Labour Law Article 84 you accrue half a month's wage for each of the first five years of service, then one full month's wage for each year beyond five, based on your last drawn wage. Part-years are paid pro-rata.

The award is based on your last drawn wage, which means basic pay plus the regular allowances that count as wage — not basic alone. Commission and regular fixed allowances are generally included; one-off bonuses are not.

What happens if I resign?

Article 85 reduces the accrued award when you resign. You get nothing under two years, one third of the award for two to five years, two thirds for five to ten years, and the full award once you reach ten years of service.

What if the employer ends the contract?

If the employer terminates the contract, or a fixed-term contract simply expires, you receive the full accrued gratuity under Article 84 with no reduction. The Article 85 scale only applies to a voluntary resignation.

Are my numbers private?

Yes. The whole calculation runs in your browser. Nothing you enter is uploaded or stored anywhere.

Saudi Arabia Gratuity / End-of-Service Calculator

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This Saudi Arabia end-of-service gratuity calculator works out the lump sum (mukafaa) you are owed when a job ends in the Kingdom, applying the real Labour Law formula and the resignation reduction scale that trips up most online estimates.

How it works

The award is governed by Article 84 of the Saudi Labour Law and is based on your last drawn wage:

First 5 years: half a month’s wage for each year.
Each year after 5: one full month’s wage.
Part-years are paid pro-rata.

If the employer ends the contract, or a fixed-term contract expires, you receive that full accrued amount.

If you resign, Article 85 scales it down by length of service:

< 2 years   → nothing
2 to < 5    → one third of the award
5 to < 10   → two thirds of the award
10 years +  → the full award

The calculator first builds the accrued months, multiplies by your wage, then applies the resignation fraction where relevant.

Example

An employee on a SAR 12,000 monthly wage with 7.5 years of service has accrued: 5 years × ½ month (2.5 months) plus 2.5 years × 1 month (2.5 months) = 5 months, or SAR 60,000. If the employer terminated the contract, they receive the full SAR 60,000. If they resigned at 7.5 years, Article 85 pays two thirds — about SAR 40,000.

Notes

This is an estimate. The exact figure depends on which allowances count as wage, the precise reason for termination (Article 81 cases pay in full even on the worker’s exit), and any contractual enhancement. Confirm with your employer or a labour adviser before relying on a number.