Saudi Arabia Final Settlement & End-of-Service Estimator

Accurately calculate statutory end-of-service awards (Article 84), Article 85 resignation tiers, unused annual leave cash payouts (Articles 109 & 111), and Article 88 payment deadlines for private-sector employment.

Employment & Contract Parameters

1. Legal Category & Termination Reason
Resignation fractions apply strictly under Article 85. Non-disciplinary terminations and Article 87 exceptions receive full statutory awards.
2. Service Period & Last Actual Wage
SAR
SAR
Under Article 2, actual wage basis for gratuity includes basic salary and regular fixed allowances.
SAR
3. Unused Annual Leave & Notice Compensation
Paid out on the basis of employee's last actual wage divided by 30 days.
4. Itemized Entitlements & Verified Deductions
Other Documented Entitlements
Lawfully Reviewed Deductions
Estimated Net Final Settlement
SAR56,000.00
Qualifying Service: 6 yrs, 0 mos, 1 days (6.00 years)
Statutory End-of-Service Award
Monthly Actual Wage BasisSAR 12,000.00
Article 84 Uncapped FormulaSAR 42,000.00
Applicable Resignation TierFull Statutory Award (100%)
Final End-of-Service AwardSAR 42,000.00
Other Settlement Components
Unused Annual Leave (10 days)SAR 4,000.00
Outstanding Unpaid WagesSAR 10,000.00
Statutory Payment Deadline (Article 88): 14 Calendar DaysMust be paid in full by: 2026-01-15. Under Article 88, if the worker terminates or resigns, all entitlements must be paid within no more than two weeks (14 calendar days).

Saudi Labour Law Settlement Rules Explained

Understand the statutory formulas, wage bases, and executive regulations governing end-of-service awards under Royal Decree No. M/51.

Article 84: End-of-Service Formula (No Statutory Cap)

The statutory award is calculated as half a month's actual wage for each of the first 5 years of service, plus one full month's actual wage for each subsequent year. Fractions of a year are computed proportionately. Unlike other Gulf states, Saudi law does not impose a 2-year wage maximum ceiling.

Article 85: Resignation Tiers & Executive Regulations

Following the 2025 executive regulations amendments, resignation represents the worker's written request to end a fixed-term contract. Entitlements are: 0 SAR for under 2 years; 1/3 of the award for 2 to 5 years; 2/3 for 5 to 10 years; and 100% full award for 10 or more years of continuous service.

Article 87: Statutory Exceptions for Resigning Workers

The worker is entitled to the full 100% award regardless of service duration or resignation in three statutory circumstances: (1) Force majeure; (2) Female worker ending her contract within 6 months of marriage; or (3) Female worker ending her contract within 3 months of childbirth.

Article 88: Strict 1-Week and 2-Week Payment Deadlines

If the employer terminates the worker, all entitlements must be settled within one week (7 calendar days). If the worker ends the contract, payment must be completed within two weeks (14 calendar days). Delayed payment without justification constitutes a labour violation.

Frequently Asked Questions

Common questions regarding end-of-service award formulas, actual wage definitions, and resignation rules in Saudi Arabia.

How is the end-of-service award calculated under the Saudi Labour Law?

Is there a maximum cap on the Saudi end-of-service award?

Is the end-of-service award calculated on basic salary or gross salary?

How does employee resignation affect the end-of-service award under Article 85?

What are the special exceptions under Article 87 where a resigning worker gets full award?

What is the statutory deadline for paying the final settlement under Article 88?

Official Sources & Verification Guidance

All calculations adhere to published ministerial decisions and statutory decrees:

Ministry of Human Resources & Social Development (HRSD)

Official regulatory body overseeing the Saudi Labour Law, executive regulations, and end-of-service benefits calculation guidelines.

Qiwa Electronic Labour Platform

Official digital portal for electronic contract authentication, employment transfer, establishment compliance, and termination documentation.

Regulatory Review Date: October 25, 2026. Statutory formulas are current with executive regulations effective February 19, 2025.