The formula (Article 84)
When your employer ends the contract, or it expires:
- Half a month’s wage for each of the first five years
- A full month’s wage for each year after the fifth
- Parts of a year count in proportion to the time worked
It’s calculated on your last wage.
If you resign (Article 85)
| Years of service | Share of the award |
|---|---|
| Less than 2 | Nothing |
| 2 to 5 | One third |
| More than 5, less than 10 | Two thirds |
| 10 or more | The full award |
Worked examples (last wage 10,000 SAR)
| Situation | Calculation | Award |
|---|---|---|
| Contract ended by employer, 7 years | 5 × 5,000 + 2 × 10,000 | 45,000 |
| Same, 5 years 6 months | 5 × 5,000 + 0.5 × 10,000 | 30,000 |
| Resigned after 3 years | ⅓ × (3 × 5,000) | 5,000 |
| Resigned after 7 years | ⅔ × 45,000 | 30,000 |
| Resigned after 12 years | 25,000 + 7 × 10,000 | 95,000 |
Exceptions: the full award even if you leave (Article 87)
- Leaving because of force majeure beyond your control.
- A female worker ending her contract within six months of marriage or three months of giving birth.
Leaving under Article 81, for example because the employer didn’t meet their obligations, also keeps the full award.
A note on the 2025 amendments
Since February 2025 the law defines resignation formally. Some lawyers read this to mean the reduced award in Article 85 applies only to resigning from a fixed-term contract. Most employers still apply Article 85 to every resignation, so check your expected award in Qiwa if this affects you.
Work out your own award with the end-of-service calculator, and your last day with the notice period calculator.