Saudi End of Service Calculator

What Is the Saudi End of Service Calculator?

This calculator estimates the gratuity (end-of-service benefit) owed to an employee leaving a private-sector job in Saudi Arabia. It applies the exact formula from Articles 84–86 of the Saudi Labour Law, administered by the Ministry of Human Resources and Social Development (MHRSD). The result depends on three variables: your last basic salary, your total years of service, and your reason for leaving.

It is primarily used by Pakistani, Indian, Filipino, and other expatriate workers before resigning or at the end of a contract. It can also be used by HR departments to verify settlement calculations before processing final exit paperwork.

How to Use This Calculator

1. Enter your monthly basic salary in SAR. This is the base salary in your official MHRSD-registered contract, not your total package including housing or transport.
2. Enter your total years and extra months of service (e.g., 6 years and 4 months).
3. Select your reason for leaving: contract ended/terminated, or resignation. This directly affects your multiplier under Article 85.
4. Click Calculate Settlement to see your end-of-service award, broken down by the 5-year service tiers.

Saudi Gratuity Formula (MHRSD Articles 84–86)

Worked Example

An expatriate employee with a basic salary of SAR 8,000/month leaves after 7 years and 3 months of service. Contract expired (no resignation penalty).

• First 5 years: 5 × 0.5 × 8,000 = SAR 20,000
• Remaining 2.25 years: 2.25 × 1.0 × 8,000 = SAR 18,000
• Total Award: SAR 38,000

If the same employee had resigned with 7.25 years of service, the Article 85 multiplier is 66.6%, giving a final award of SAR 38,000 × 0.666 = approximately SAR 25,308.

Practical Use Cases

• Before resigning: Run both scenarios (termination vs resignation) to understand exactly how much you forfeit by leaving early. Many workers find it financially worthwhile to negotiate a mutual exit agreement rather than resign outright.
• Verifying your employer’s calculation: Saudi employers are legally required to pay the correct amount. If your company’s HR gives you a number that differs from this calculator, check which salary figure they used — allowances are frequently excluded incorrectly.
• Planning remittances: Use the Currency Converter to see your SAR award in PKR before finalizing your exit plans.
• Comparing GCC countries: If you are deciding between staying in KSA or moving to another GCC country, compare your potential award here against the UAE Gratuity Calculator.

Common Mistakes to Avoid

• Including allowances in the salary figure: The law bases gratuity on your basic wage. Housing allowance, transportation, and phone allowances are excluded unless your contract specifically classifies them as part of the basic wage.
• Confusing resignation and termination: Many workers assume they get full payment regardless of how they leave. Under Article 85, resigning before 5 years means receiving only one-third of the theoretical award.
• Ignoring probation periods: If you completed probation and were confirmed as a permanent employee, that probation period counts toward your total service length. Do not subtract it.

Accuracy & Legal Notes

This calculator follows MHRSD Articles 84–86 as written under the Saudi Labour Law. It does not account for accrued annual leave balance (which is paid separately), any salary advances or loans the employer may deduct from the final settlement, or gross misconduct dismissals under Article 80 (in which the employer may legally withhold the full award).

For disputed settlements, contact MHRSD through the Musaned portal or the Saudi Ministry of Justice Labour Courts.

Frequently Asked Questions