Saudi Arabia End of Service Calculator
Answer first. Under the Saudi Labour Law, your end-of-service award is half a month's wage for each of your first five years and a full month's wage for each year after that, based on your last wage. Partial years count in proportion. If you resign, you receive nothing under 2 years of service, one third between 2 and 5 years, two thirds between 5 and 10 years, and the full award after 10 years.
- Years of service
- 7.01
- Full award
- SAR 45,054.79
- Share due
- 67%
- You receive
- SAR 30,036.53
First five years: SAR 25,000.00. Years after five: SAR 20,054.79.
How the award is calculated
- Work out your years of service, including the partial year. For example, 6 years and 6 months is 6.5 years.
- Use your last wage. HRSD defines wage as the basic wage plus the other increases paid for the work. Variable items such as commission can be excluded where the contract says so.
- Apply the rates:
- first 5 years: 0.5 × monthly wage × years
- after 5 years: 1 × monthly wage × years
- If you resigned, apply the resignation share:
Service when you resign Share of the award Under 2 years 0 2 to 5 years ⅓ over 5 to under 10 years ⅔ 10 years or more full - The full award applies despite resignation in two cases HRSD lists:
- a female worker who leaves within 6 months of marriage or 3 months of giving birth
- leaving because of force majeure
Worked examples (calculated with this tool)
| Situation | Last wage (SAR) | Full award | You receive |
|---|---|---|---|
| Resigned after 3 years | 10,000 | 3 × 0.5 × 10,000 = 15,000 | ⅓ = 5,000 |
| Contract terminated after 7 years | 12,000 | (5 × 0.5 × 12,000) + (2 × 12,000) = 54,000 | 54,000 |
| Resigned after 6.5 years | 8,000 | (5 × 0.5 × 8,000) + (1.5 × 8,000) = 32,000 | ⅔ = 21,333.33 |
| Resigned after 12 years | 15,000 | (5 × 0.5 × 15,000) + (7 × 15,000) = 142,500 | 142,500 (full after 10 years) |
| Resigned after 1.5 years | 9,000 | 6,750 | 0 (under 2 years) |
How this compares with the official calculators
The Ministry's own services, on HRSD and Qiwa, are the official reference for your case. This calculator applies the same published rules so you can check a figure, plan a resignation date, or prepare a final settlement. Where your contract or a court ruling says otherwise, that decides.
For employers
End-of-service is a liability that grows every year of service. Naseej Consulting helps HR teams keep settlements correct and documented.
Frequently asked questions
How much gratuity after 2 years in Saudi Arabia?
Two years of service earns 2 × 0.5 = one month's last wage as the full award. If you resign at exactly 2 years, you receive one third of it. If the employer ends the contract, you receive all of it.
How can I calculate my end of service?
Enter your start date, end date, last monthly wage and the reason you are leaving above. The tool applies the rates and resignation shares shown on this page.
What is the formula to calculate ESB?
Full award = (0.5 × wage × years, up to 5) + (1 × wage × years beyond 5). On resignation, multiply by 0, ⅓, ⅔ or 1 depending on length of service.
How do I calculate my full and final settlement?
The end-of-service award is one part of it. A final settlement usually also includes unpaid salary and any unused annual leave owed to you. Check your contract and the official HRSD services for your case.