How to use it
- Choose your contract type: open-ended (no end date) or fixed-term.
- Enter your monthly wage, including fixed allowances.
- Enter your first day of work and the day the contract was ended. For a fixed-term contract, also enter the end date written in the contract.
The result shows the compensation, how it was worked out, and whether the two-month minimum applied.
The rule
Article 77 of the Saudi Labor Law says that if a contract is ended for a reason that isn’t valid, and the contract doesn’t name its own compensation, the other party is owed:
| Contract | Compensation |
|---|---|
| Open-ended | 15 days’ wage for each year of service |
| Fixed-term | The wage for the remaining period of the contract |
| Both | At least 2 months’ wage |
The same rule applies when the worker ends the contract without a valid reason: the employer can then claim compensation from the worker.
Examples (wage 8,000 SAR)
| Situation | Worked out | Compensation |
|---|---|---|
| Open-ended, 6 years | 8,000 ÷ 30 × 15 × 6 = 24,000 | 24,000 |
| Open-ended, 6 years 6 months | 8,000 ÷ 30 × 15 × 6.5 = 26,000 | 26,000 |
| Open-ended, 1 year | 4,000, below the minimum | 16,000 (2 months) |
| Fixed-term, 8 months left | 8 × 8,000 | 64,000 |
| Fixed-term, 1 month left | 8,000, below the minimum | 16,000 (2 months) |
Before you sign a final settlement
- Check that your end-of-service award is calculated separately. You can work it out with the end-of-service calculator.
- Check that unused annual leave is paid. See the annual leave calculator.
- Dismissal under Article 80 (for serious misconduct) isn’t covered by Article 77.
Draft changes to Article 77 were discussed in 2026. This calculator follows the text in force; check the latest official text on the Ministry of Human Resources website or with a lawyer before you rely on it.