Saudi Arabia End of Service Gratuity: How It's Calculated
· 1 min read · Employment & Gratuity
Saudi Arabia's end-of-service gratuity system is more layered than the UAE's — the amount you're owed depends heavily on whether you resigned or were terminated, and how many years you served. Here's how the Saudi Labor Law actually works.
Calculate your Saudi gratuity
See exactly what you're owed based on your tenure and how you left the job.
Ad space
The base formula
Under Articles 84-87 of the Saudi Labor Law, full gratuity is:
- Half a month's salary for each of your first 5 years of service
- One full month's salary for each year after that
This uses your basic salary at the time your employment ends.
Termination vs resignation changes everything
If your employer terminates your contract (without cause attributable to you), you get the full gratuity calculated above.
If you resign, the amount is scaled down based on your tenure:
| Years of service | Gratuity owed |
|---|---|
| Under 2 years | None |
| 2 to under 5 years | 1/3 of full gratuity |
| 5 to under 10 years | 2/3 of full gratuity |
| 10+ years | Full gratuity |
Ad space
Frequently asked questions
Does resigning always reduce my gratuity in Saudi Arabia?
Only if you have less than 10 years of service. Resign after 10+ years and you get the full amount, same as if you were terminated.
What counts as my salary for the calculation?
Your basic salary at the end of your employment, not including allowances.
Is there a cap on Saudi gratuity like in the UAE?
Saudi Labor Law does not impose the same explicit 2-year salary cap that the UAE does — the amount grows linearly with years of service.
Don't miss it: Calculate your Saudi gratuity
Use our free tool and get your answer with real numbers.
Related calculators
Related articles
Ad space