Saudi End of Service Calculator

What Is the Saudi End of Service Calculator?

This calculator estimates the gratuity (end-of-service benefit) owed to an employee leaving a private-sector job in Saudi Arabia. It uses the commonly applied approach described for Articles 84–86 of the Saudi Labour Law, administered by the Ministry of Human Resources and Social Development (MHRSD). The result depends on three variables: your last basic salary, your total years of service, and your reason for leaving.

Primary references: MHRSD (official site), and the published text of the Saudi Labour Law Articles 84–86 (verify the latest official wording on the authority’s site where available).

It is primarily used by Pakistani, Indian, Filipino, and other expatriate workers before resigning or at the end of a contract. It can also be used by HR departments to verify settlement calculations before processing final exit paperwork.

How to Use This Calculator

1. Enter your monthly basic salary in SAR. This is the base salary in your official MHRSD-registered contract, not your total package including housing or transport.
2. Enter your total years and extra months of service (e.g., 6 years and 4 months).
3. Select your reason for leaving: contract ended/terminated, or resignation. This directly affects your multiplier under Article 85.
4. Click Calculate Settlement to see your end-of-service award, broken down by the 5-year service tiers.

Saudi Gratuity Formula (MHRSD Articles 84–86)

How “extra months” are treated: the tool converts your total service to a fractional number of years using months/12. The resignation multiplier is then applied based on the resulting total years (including partial months).

Important: Calculated on basic salary only. Housing, transport, and other allowances are excluded — unless your employment contract explicitly classifies them as part of the basic wage.

Worked Example

An expatriate employee with a basic salary of SAR 8,000/month leaves after 7 years and 3 months of service. Contract expired (no resignation penalty).

• First 5 years: 5 × 0.5 × 8,000 = SAR 20,000
• Remaining 2.25 years: 2.25 × 1.0 × 8,000 = SAR 18,000
• Total Award: SAR 38,000

If the same employee had resigned with 7.25 years of service, the Article 85 multiplier is 66.6%, giving a final award of SAR 38,000 × 0.666 = approximately SAR 25,308.

Practical Use Cases

• Before resigning: Run both scenarios (termination vs resignation) to understand exactly how much you forfeit by leaving early. Many workers find it financially worthwhile to negotiate a mutual exit agreement rather than resign outright.
• Verifying your employer’s calculation: Saudi employers are legally required to pay the correct amount. If your company’s HR gives you a number that differs from this calculator, check which salary figure they used — allowances are frequently excluded incorrectly.
• Planning remittances: Use the Currency Converter to see your SAR award in PKR before finalizing your exit plans.
• Comparing GCC countries: If you are deciding to relocate, you can compare your Saudi award against UAE gratuity entitlement, Kuwait employee benefits, or Oman end-of-service rules.

Common Mistakes to Avoid

• Including allowances in the salary figure: The law bases gratuity on your basic wage. Housing allowance, transportation, and phone allowances are excluded unless your contract specifically classifies them as part of the basic wage.
• Confusing resignation and termination: Many workers assume they get full payment regardless of how they leave. Under Article 85, resigning before 5 years means receiving only one-third of the theoretical award.
• Ignoring probation periods: If you completed probation and were confirmed as a permanent employee, that probation period counts toward your total service length. Do not subtract it.

Accuracy & Legal Notes

This calculator follows MHRSD Articles 84–86 as written under the Saudi Labour Law. It does not account for accrued annual leave balance (which is paid separately), any salary advances or loans the employer may deduct from the final settlement, or gross misconduct dismissals under Article 80 (in which the employer may legally withhold the full award).

For disputed settlements, you can contact MHRSD via the MUSANED platform (where applicable) and use the dispute mechanisms available through the Saudi Ministry of Justice and relevant labour court processes.

Final Settlement in Saudi Arabia: What to Expect Before Leaving

In Saudi Arabia, end-of-service payment is only one part of a final settlement. Before you receive anything, employers may have obligations under Saudi Labour Law related to salary and settlement items. This page lists common components, but the exact amounts and timelines can vary by contract terms and facts:

• Unpaid Salary: Any remaining salary for the final month, including unpaid overtime, is typically settled within employer and legal timelines; confirm the timeframe in the official guidance and your contract.
• Unused Annual Leave: If you have accrued but untaken annual leave, the employer must pay cash compensation calculated on your daily basic salary rate.
• Notice Period Pay: If the employer terminates without giving the statutory notice (60 days for unlimited contracts), they owe you compensation equal to the notice period salary.
• End of Service Award (Gratuity): Calculated by this tool — payable within the final settlement.
• Return Air Ticket: For expatriate employees, the employer must provide one economy class return ticket to the employee's home country.

Total your gratuity from this calculator, add your unused leave days, and any notice pay owed to estimate your complete final settlement package.

Saudi Iqama Cancellation and the Exit Timeline

Once your employment contract ends, the Saudi Iqama (residency permit) cancellation process begins. Understanding this timeline prevents overstay fines:

• Your employer initiates Iqama cancellation through the QIWA/Absher portal (timing can vary depending on case processing and documentation readiness).
• Once initiated, there may be an exit/grace period to leave the Kingdom; confirm the validity period shown in your own process for your specific case.
• If your final settlement is delayed, you can file a complaint with MHRSD via the MUSANED platform (where applicable) — response times can vary.
• End-of-service/gratuity handling and timing may depend on legal requirements and case facts; confirm the applicable obligation in the current official labour law text for your situation.

Saudi Arabia vs. Other GCC Countries

Saudi Arabia's most distinct feature is its graded resignation penalty with four tiers (<2yr, 2–5yr, 5–10yr, 10yr+), which is more complex than any other GCC country. The 2-year minimum for any resignation payout is the strictest in the region. For employer-initiated termination, Saudi's formula (0.5× first 5 years, 1.0× after) is similar to Bahrain's but with a longer first tier.

Required Documents to Claim Gratuity in Saudi Arabia

• Valid passport and Saudi Iqama (residency permit) copy
• Signed employment contract specifying basic salary
• Last 6 salary slips or bank statements showing regular salary payments
• Termination letter or resignation acceptance from employer
• MHRSD work permit cancellation documentation
• QIWA/Absher portal records (if disputing salary or service records)

Saudi Arabia Gratuity Claim Timeline

1. Employer settlement request (Day 0): Submit a formal written request to your employer for end-of-service settlement, including gratuity, unused leave, and any unpaid salary.
2. Payment due (Week 2–4): Saudi Labour Law requires settlement within a reasonable period. In practice, most employers process within 30 days. If unpaid, proceed to the next step.
3. MHRSD complaint (Week 4+): File a complaint via the MUSANED platform or visit a MHRSD service centre. The Ministry attempts conciliation between employer and worker.
4. Labour Court referral (Month 2–6): If conciliation fails, the case is referred to the Labour Court. Saudi labour courts have streamlined processes post-2020 reforms, with typical resolution within 2–6 months for straightforward cases.

Frequently Asked Questions