Calculate total final settlement: EOS gratuity + unused annual leave encashment. Article 84 formula, resignation vs termination.
Updated June 2026 • EOS + Leave Encashment • Min. 21 days leave/year
In Saudi Arabia 2026, your final settlement = End of Service Gratuity (EOS) + Unused Annual Leave Encashment. The EOS award (Article 84) is a half-month wage per year for the first 5 years plus a full-month wage per year after that. On resignation it is reduced under Article 85 to one-third (2–5 years), two-thirds (5–10 years), or the full amount (10+ years); termination by the employer pays the full award. Leave is paid at the full daily rate (Basic ÷ 30) × Unused Days.
Calculate Your Final Settlement
Only basic salary is included in EOS and leave calculations.
Resignation requires min. 2 years service for EOS eligibility.
Max 30 days/year earned. Total unused cannot exceed 60 days.
Total Service Duration3.5 years
EOS AmountSAR 5,833.33
Leave EncashmentSAR 5,000.00
Total Final SettlementSAR 10,833.33
📖 How to Use This Final Settlement Calculator
Our free final settlement calculator helps employees in Saudi Arabia understand their exact end-of-employment entitlement under Article 84 of the Labour Law. This tool computes both your End of Service Gratuity (EOS) and unused annual leave encashment in one place.
Enter Your Last Wage Input your last monthly wage. Saudi Labour Law bases the award on the "last wage"; if your allowances are part of your contractual wage, include them. If unsure, enter your basic salary for a conservative estimate.
Select Contract Type Choose between unlimited or fixed-term contract. Both follow the same Article 84 rules for final settlement.
Choose Reason for Leaving Select resignation (employee-initiated) or termination (employer-initiated). This determines the Article 85 reduction applied to your EOS award.
Enter Service Duration Input your total years and months of continuous service with this employer.
Enter Unused Leave Days Input the number of unused annual leave days you've accumulated (max 30 days per year, up to 60 total).
Calculate Final Settlement See your total final settlement amount including both EOS and leave encashment.
📊 Worked Examples: Final Settlement Scenarios
Example 1: Resignation After 3.5 Years
Scenario: Ali resigns from his job in Riyadh after 3 years 6 months with SAR 10,000 last wage and 15 unused leave days.
Component
Value
Last wage
SAR 10,000
Service Duration
3.5 years (within first 5 years)
Article 84 base award
3.5 × ½ month = 1.75 × 10,000 = SAR 17,500
Article 85 resignation factor (2–5 yrs)
1/3 → EOS = SAR 5,833.33
Daily Wage (10,000 ÷ 30)
SAR 333.33
Leave Encashment (15 × 333.33)
SAR 5,000.00
Total Final Settlement
SAR 10,833.33
Example 2: Termination After 2 Years
Scenario: Fatima is terminated by her employer in Jeddah after 2 years with SAR 8,000 last wage and 25 unused leave days.
Component
Value
Last wage
SAR 8,000
Service Duration
2 years (within first 5 years)
Article 84 base award
2 × ½ month = 1.0 × 8,000 = SAR 8,000
Termination factor
Full award → EOS = SAR 8,000
Daily Wage (8,000 ÷ 30)
SAR 266.67
Leave Encashment (25 × 266.67)
SAR 6,666.67
Total Final Settlement
SAR 14,666.67
Reviewed by the Saudi Utility Hub Editorial Team
Researched and fact-checked against official Saudi government sources (GOSI, HRSD, Qiwa).
Last reviewed: June 2, 2026 | Next review: July 1, 2026
Verified against official Saudi Labour Law Article 84 and Qiwa portal guidelines. Learn more about our review process.
Qiwa Platform – Final settlement calculation and payment verification.
Absher Portal – Final exit procedures including settlement confirmation.
Disclaimer: Calculator results are estimates only. Verify your final settlement amount through the official Qiwa portal or with your employer's HR department.
❓ Frequently Asked Questions
What is included in final settlement in Saudi Arabia?
Final settlement in Saudi Arabia includes: (1) End of Service Gratuity (EOS) under Article 84, and (2) Encashment of unused annual leave days at full daily wage rate.
How is unused leave calculated?
Unused annual leave is calculated as: (Basic Salary ÷ 30) × Number of Unused Days. Employees earn 21–30 days of annual leave per year depending on service duration.
What is the difference between EOS and final settlement?
EOS is only the gratuity payment under Article 84. Final settlement = EOS + unused leave encashment + any other outstanding dues (e.g., unpaid salary).
Do I get final settlement if I resign?
Yes, if you have at least 2 years of service. On resignation, the Article 84 award (½ month per year for the first 5 years plus a full month per year after) is reduced under Article 85 to one-third for 2–5 years of service, two-thirds for 5–10 years, and the full amount at 10+ years. Unused leave is always paid at the full daily rate regardless of resignation or termination.
What if my employer terminates me?
You receive the full Article 84 award (½ month per year for the first 5 years plus a full month per year after), plus full unused leave encashment, regardless of service duration.
Is there a minimum service period for final settlement?
For EOS: minimum 2 years if resigning. For unused leave: no minimum period — you earn leave from day one of employment.
How many annual leave days do I get?
Employees get 21 days of annual leave per year for first 5 years, then 30 days per year after 5 years of continuous service.
Can I carry forward unused leave?
Yes, unused annual leave can be carried forward and encashed upon final settlement, up to a maximum of 60 days (2 years' worth).
How long does employer have to pay final settlement?
Employer must pay final settlement within 14 days of contract termination, as per Saudi Labour Law.
Does final settlement apply to expatriates?
Yes, final settlement applies to all private sector employees in Saudi Arabia, including expatriates, under Article 84 of Labour Law.
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⚠️ Disclaimer: All results are estimates based on publicly available Saudi government regulations and rates. Always verify important financial or legal decisions with your employer, bank, or the relevant Saudi authority (Ministry of Human Resources, GOSI, ZATCA, Jawazat, or SAMA).
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