Calculate End of Service Gratuity under Article 84: resignation vs termination, unlimited contracts, expatriate eligibility
Updated June 2026 • Article 84 • ½ month/yr (first 5 yrs) + 1 month/yr (after) • Resignation reduced per Article 85
Under Saudi Labour Law Article 84, your 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 your last 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 pays the full award. The award is based on the last wage; this tool uses basic salary as the input.
Calculate Your End of Service Gratuity
Only basic salary is included in EOS calculation. Check your contract.
Resignation requires min. 2 years service for EOS eligibility.
Total Service Duration3.5 years
Applicable Rate1/3 of full award (resignation, 2–5 yrs)
Total Months Payable0.58 months of wage
End of Service GratuitySAR 5,833.33
📖 How to Use This EOS Calculator
Our free EOS calculator helps employees in Saudi Arabia understand their exact end-of-service entitlement under Article 84 of the Labour Law. Whether you're resigning or being terminated, this tool computes your gratuity accurately using only your basic salary.
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 you are 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 EOS calculation.
Choose Reason for Leaving Select resignation (employee-initiated) or termination (employer-initiated). This determines the Article 85 reduction applied to your award.
Enter Service Duration Input your total years and months of continuous service with this employer.
Calculate EOS See your exact gratuity amount based on Saudi Labour Law Article 84.
📊 Worked Examples: EOS Calculations
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.
Component
Value
Last wage
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
EOS Amount
17,500 × 1/3 = SAR 5,833.33
Example 2: Termination After 2 Years
Scenario: Fatima is terminated by her employer in Jeddah after 2 years with SAR 8,000 last wage.
Component
Value
Last wage
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%)
EOS Amount
SAR 8,000
Example 3: Resignation After 8 Years (crosses the 5-year tier)
Scenario: Omar resigns after 8 years with SAR 12,000 last wage.
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 – EOS calculation and payment verification.
Absher Portal – Final exit procedures including EOS confirmation.
Disclaimer: Calculator results are estimates only. Verify your final EOS amount through the official Qiwa portal or with your employer's HR department.
❓ 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 your last wage. On resignation, Article 85 reduces this to one-third of the award for 2–5 years of service, two-thirds for more than 5 but under 10 years, and the full award at 10+ years. Termination by the employer 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 2–5 years of service, two-thirds for more than 5 but under 10 years, and the full award at 10 years or more.
What if my employer terminates me?
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.
Is there a minimum service period for EOS?
For resignation: minimum 2 years. For termination by employer: no minimum period.
Does EOS apply to expatriates?
Yes, EOS applies to all private sector employees in Saudi Arabia, including expatriates, under Article 84 of Labour Law.
What is included in EOS calculation?
Only basic salary is included. Housing, transport, and other allowances are excluded from EOS calculation.
How is partial year calculated?
Partial years are prorated. For example, 2 years 6 months = 2.5 years.
Can I transfer my EOS to new employer?
No, EOS is paid out when you leave your current employer. It cannot be transferred.
What if I have an unlimited contract?
Unlimited contracts follow the same Article 84 rules as fixed-term contracts for EOS calculation.
How long does employer have to pay EOS?
Employer must pay EOS within 14 days of contract termination, as per Saudi 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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