Under Article 84 of the Saudi Labor Law, when the work relationship ends the employer pays an end-of-service award based on the last wage:
- half a month's wage for each of the first five years;
- one month's wage for each year after that;
- parts of a year count in proportion to the time worked.
If you resign (Article 85), you get part of that award: nothing under 2 years, one third for 2 to 5 years, two thirds for more than 5 and under 10 years, and the full award at 10 years or more.
You keep the full award even though you left if the employer broke the law or the contract (Article 81), if you left because of force majeure, or if you are a woman who ends her contract within six months of marrying or three months of giving birth (Article 87). Dismissal for one of the misconduct cases in Article 80 removes the award.
The wage used is the actual wage (Article 2): basic pay plus the other increases you are due, such as housing and transport allowances. Your contract may say how commissions are treated. Unpaid leave of more than 20 days in a work year is not counted as service (Articles 2 and 116). A termination without a valid reason can also bring separate compensation under Article 77; it is not part of this award.
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Rules as of 21 October 2026. Source: Saudi Labor Law, Royal Decree M/51 of 23/8/1426H as amended (most recently by Royal Decree M/44, in force 19 February 2025), Articles 2, 77, 80, 81, 84, 85, 87 and 116 — official Arabic text on the Bureau of Experts site; English translation published by HRDF. Compare with the MHRSD end-of-service calculator. Where rules vary, check your contract and the official source. This is a guide, not legal advice.