Saudi End-of-Service Award: How Much You Get, Including After Resignation
Under Saudi Labor Law, the end-of-service award is half a month's pay per year for the first 5 years and a full month after. Resigning reduces it unless you have 10+ years.
Saudi Arabia| Country | Saudi Arabia |
|---|---|
| Organization | Saudi Ministry of Human Resources and Social Development (HRSD) |
| Official source | HRSD – Saudi Labor Law (Royal Decree M/51) ✓ hrsd.gov.sa |
If you work in Saudi Arabia's private sector, you are entitled to an end-of-service award when your job ends. How much you get depends on your years of service and whether you resigned or the employer ended the contract.
The basic formula (Article 84)
The award is calculated on your last wage:
| Years of service | Award per year |
|---|---|
| First 5 years | Half a month's wage |
| Each year after 5 | One month's wage |
Example: last wage SAR 8,000 a month, 8 years of service, contract ended by the employer:
- First 5 years: 5 × 0.5 × 8,000 = SAR 20,000
- Next 3 years: 3 × 8,000 = SAR 24,000
- Total: SAR 44,000
If you resign (Article 85)
Resigning reduces the award, depending on your service:
| Service when you resign | Share of the award |
|---|---|
| Less than 2 years | None |
| 2 to 5 years | One third |
| More than 5 and less than 10 years | Two thirds |
| 10 years or more | Full award |
When you get the full award even if you leave (Article 87)
- You leave because of force majeure beyond your control.
- A female worker ends her contract within 6 months of marriage or 3 months of giving birth.
Annual leave and leave pay
- At least 21 days of paid annual leave a year (Article 109).
- This rises to at least 30 days after 5 consecutive years with the same employer.
- If you leave with unused leave, you must be paid for those days, plus leave pay for the part of the year you worked (Article 111).
Recent amendments to know
The amended Labor Law, set out in an HRSD guide, includes:
- Probation: a maximum of 180 days in total.
- Notice for indefinite contracts (monthly paid): 30 days from the worker, 60 days from the employer.
- Maternity leave: 12 weeks fully paid.
- Resignation: treated as accepted if the employer doesn't respond within 30 days, and it can be withdrawn within 7 days unless already accepted.
Tips
- Check that your "last wage" figure in the settlement matches your contract.
- Keep your Qiwa contract and payslips.
- If your dues are not paid, file a complaint through HRSD's official channels.
This is general information, not legal advice. Contracts and special cases can change the result.
Apply only through the official source.
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