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
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.

