Estimate End of Service Gratuity under Article 84: resignation vs termination, unlimited and fixed-term contracts, expatriate eligibility
Estimator based on Labour Law Articles 84 & 85 · ½ month/yr (first 5 yrs) + 1 month/yr (after) · Resignation reduced per Article 85
Under Saudi Labour Law Article 84, End of Service Gratuity is a half-month wage for each of the first 5 years of service plus a full-month wage for each year beyond 5, based on the worker's wage. If you resign, Article 85 reduces the award to one-third (2–5 years), two-thirds (5–10 years), or the full amount (10+ years). Termination by the employer, contract expiry, or retirement pays the full award. [1]
⚠️ This is an independent estimator, not an official calculation. It is not affiliated with HRSD, GOSI, or Qiwa. Your actual entitlement depends on your specific employment contract and the current official Labour Law text. Use the official HRSD EOS calculator linked below to cross-check any result before relying on it.
Estimate Your End of Service Gratuity
Enter the monthly wage figure your employment contract uses to determine pay. Saudi Labour Law bases the award on the worker's "wage," and HRSD's own official calculator asks for "actual wage." Only variable pay (commissions, percentages, and similar amounts that genuinely fluctuate) may be excluded, and only by agreement — see "What counts as wage" below. If you are unsure which figure applies to you, check your contract or ask HR; you can also enter your basic salary alone for a conservative, lower-bound estimate. Values above SAR 10,000,000/month are treated as unrealistic and rejected.
Both contract types follow the same Article 84 formula. If a fixed-term contract simply completes its agreed term, select "Termination / contract expiry / retirement" below — a natural contract expiry is not a resignation.
Resignation requires at least 2 years of service before any award is due (Article 85). This tool does not model Article 80 misconduct-dismissal outcomes — see the FAQ below.
Total Service Duration3.50 years
Wage Base UsedSAR 10,000.00 / month
First 5 Years Portion (½ month/yr)1.75 months = SAR 17,500.00
Beyond 5 Years Portion (1 month/yr)0.00 months = SAR 0.00
Adjustment Applied1/3 of the full award — resignation, 2 to 5 years (Article 85)
Total Months Payable0.58 months of wage
Estimated End of Service GratuitySAR 5,833.33
✅ Verify this result: Cross-check any figure from this tool against the official HRSD End-of-Service Benefit Calculator, and confirm your final settlement through the Qiwa portal or your employer's HR department before making any decisions.
📖 How to Use This EOS Estimator
This free tool helps employees in Saudi Arabia estimate their end-of-service entitlement under Article 84 of the Labour Law. Whether you're resigning, being terminated, or reaching the end of a fixed-term contract, it computes an estimated gratuity and shows the full calculation breakdown so you can check each step.
Enter Your Wage Input the monthly wage figure used for your pay, in SAR. See "What counts as wage" in the FAQ if you are unsure whether to include a housing or transport allowance.
Select Contract Type Choose between unlimited or fixed-term contract. Both follow the same Article 84 rules for the EOS calculation itself.
Choose Reason for Leaving Select resignation, or termination/contract expiry/retirement. This determines the Article 85 reduction applied to your award.
Enter Service Duration Input your total years and additional months (0–11) of continuous service with this employer.
Calculate EOS See an estimated gratuity amount with a full breakdown, based on Saudi Labour Law Article 84.
What this tool does not cover: it does not model Article 80 serious-misconduct dismissals, the female-worker marriage/childbirth full-award exception, the force-majeure full-award exception, GOSI pension interactions, or domestic workers (who follow a separate formula). These situations are described in the FAQ below and require confirmation from HRSD, Qiwa, or a qualified Saudi employment lawyer.
📊 Worked Examples: EOS Calculations
Example 1: Resignation After 3.5 Years (under 5 years)
Scenario: Ali resigns from his job in Riyadh after 3 years 6 months with a SAR 10,000/month wage.
Component
Value
Wage used
SAR 10,000
Service Duration
3.5 years (all 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
Estimated EOS
17,500 × 1/3 = SAR 5,833.33
Example 2: Termination After 2 Years (under 5 years)
Scenario: Fatima is terminated by her employer in Jeddah after 2 years with a SAR 8,000/month wage.
Component
Value
Wage used
SAR 8,000
Service Duration
2 years (all within first 5 years)
Article 84 base award
2 × ½ month = 1.0 × 8,000 = SAR 8,000
Termination factor
Full award (100%)
Estimated EOS
SAR 8,000
Example 3: Resignation After 8 Years (crosses the 5-year tier)
Scenario: Omar resigns after 8 years with a SAR 12,000/month wage.
Example 4: Fixed-Term Contract Completion After 12 Years (over 10 years)
Scenario: Huda's fixed-term contract in Dammam completes its agreed term after exactly 12 years, with a SAR 15,000/month wage. A natural contract expiry is treated as an employer-side ending, not a resignation.
Earlier versions of pages like this one often state flatly that "only basic salary counts" for EOS. We could not confirm that as the current, complete legal position, so we researched the primary sources directly rather than repeating it. Here is what we found and how we handled it:
HRSD's own official EOS calculator requires an input labeled "Actual wage" — not "basic salary" [2].
HRSD's official guidance on the end-of-service award states that "wage" means the basic wage plus other amounts due to the worker under the contract, and that only commissions, percentages, and similar components which are by their nature subject to increase or decrease may be excluded from the calculation base — and only if employer and worker have specifically agreed to exclude them [1].
Read together, this indicates the wage base is broader than "basic salary only": a fixed, regular contractual allowance is not the kind of fluctuating component the exclusion is meant for, so it is generally expected to be included by default, while genuinely variable pay may be excluded by agreement.
We are not a licensed Saudi law firm, and a specific allowance in a specific contract can still be a fact-specific question (for example, whether a "transport allowance" in your contract is a fixed monthly sum or a variable reimbursement changes the answer). If your case is not a straightforward fixed monthly allowance, confirm directly with HRSD, Qiwa, or a qualified employment lawyer rather than relying solely on this estimate.
📎 Official Sources We Verified
[1] HRSD — "End-of-Service Award Regulations" — Article 84 formula, Article 85 resignation tiers, the wage definition, and the commission/percentage exclusion clause. Fetched directly from hrsd.gov.sa.
[3] HRSD — "Contract Termination" — confirms fixed-term contracts end on completion of their agreed term, and describes notice-period and unlawful-termination compensation rules (Article 77) as distinct from the Article 84 end-of-service award modeled by this calculator. Fetched directly from hrsd.gov.sa.
Article 80's exact misconduct grounds and day-count thresholds, the Article 87 treatment of Article 80 dismissals after 5+ years, fixed-term early-exit compensation, and any GOSI-specific interaction for Saudi nationals were not confirmed against a primary HRSD source. Treat those points as requiring independent legal verification, consistent with the FAQ answers below.
Disclaimer: This calculator produces estimates only, based on our reading of the sources above. It is not legal advice and is not a substitute for confirming your exact entitlement with HRSD, the Qiwa portal, or your employer's HR department.Learn more about how we research this site.
❓ Frequently Asked Questions
What is the EOS formula in Saudi Arabia?
Under Article 84 of Saudi Labour Law, the end-of-service award is a half-month wage for each of the first 5 years of service plus a full-month wage for each year beyond 5, based on the worker's wage. On resignation, Article 85 reduces this to one-third of the award for 2 to 5 years of service, two-thirds for more than 5 but under 10 years, and the full award at 10+ years. Termination by the employer, contract expiry, or retirement pays the full award.
Do I get EOS if I resign?
Yes, if you have at least 2 years of service. Under Article 85, resignation pays one-third of the full Article 84 award for 2 to 5 years of service, two-thirds for more than 5 but under 10 years, and the full award at 10 years or more. Under 2 years of service, resignation pays no award.
What if my employer terminates me?
In most cases you receive the full Article 84 award: a half-month wage for each of the first 5 years plus a full-month wage for each year beyond 5, regardless of service duration. An exception applies if the employer ends the contract for the specific serious-misconduct grounds listed in Article 80 — see our Article 80 answer below, which this calculator does not model.
What counts as "wage" for the EOS calculation?
Saudi Labour Law bases the end-of-service award on the worker's "wage," which HRSD defines as the basic wage plus other amounts due under the work contract. HRSD's own official EOS calculator asks for your "actual wage," and HRSD's published guidance says only commissions, percentages, and similar components that genuinely vary may be excluded from this base, and only if employer and worker have agreed to exclude them. This suggests a fixed, regular contractual allowance (for example, a standing housing or transport allowance) is generally expected to be included, while pay that truly fluctuates may not be. This is a fact-specific question about your own contract, so check its exact wording and confirm with HRSD, Qiwa, or a labor lawyer if you are unsure.
Is there a minimum service period for EOS?
For resignation: a minimum of 2 years is required before any award is due. For termination by the employer, contract expiry, or retirement: there is no minimum period — the award (however small) is due from the first day of service, prorated for partial years.
Does EOS apply to expatriates?
Yes, the Article 84 end-of-service award applies to private-sector employees in Saudi Arabia generally, including expatriate workers. Domestic workers are covered by a separate set of regulations with a different formula, not this one.
How is partial year calculated?
Partial years are prorated in proportion to time actually worked. For example, 2 years and 6 months of service is treated as 2.5 years when applying the Article 84 formula.
Can I transfer my EOS to a new employer?
No. The end-of-service award is paid out by your current employer when your employment with them ends. It resets with a new employer and cannot be carried over or transferred.
Does a fixed-term contract get the same EOS as an unlimited contract?
Yes. HRSD guidance confirms the end-of-service award is due at the end of the employment relationship whether the contract is fixed-term or open-ended (unlimited). When a fixed-term contract simply completes its agreed term, this is treated as an employer-side ending for EOS purposes (full Article 84 award) rather than as a resignation.
What if I'm dismissed for serious misconduct (Article 80)?
Article 80 of the Labour Law lists specific serious-misconduct grounds — such as assault, breach of trust or integrity, disclosing trade secrets, or extended unauthorized absence — under which an employer may end a contract without notice, after giving the worker a chance to respond. Whether and how this affects the end-of-service award in a given case is a fact-specific legal question with sources we found giving inconsistent detail on the exact thresholds involved. This calculator does not model Article 80 outcomes. If you believe Article 80 has been invoked in your case, verify your entitlement with HRSD or a qualified Saudi employment lawyer before relying on any online estimate.
How soon must my employer pay my EOS?
Saudi Labour Law requires final dues, including the end-of-service award, to be settled promptly after the contract ends. We found different specific deadlines cited across sources and could not confirm one single statutory number from a primary HRSD source, so confirm the applicable deadline for your case with HRSD, the Qiwa portal, or your employer's HR department.
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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).