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العربية

Article 77 compensation calculator

If your employer ended your contract without a valid reason, Article 77 of the Saudi Labor Law gives you compensation. Enter your wage and dates to see the amount.

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How to use it

  1. Choose your contract type: open-ended (no end date) or fixed-term.
  2. Enter your monthly wage, including fixed allowances.
  3. 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.

Article 77 compensation calculator: common questions

How is Article 77 compensation calculated?

For an open-ended contract, 15 days’ wage for every year of service. For a fixed-term contract, the wage for the rest of the contract. In both cases it can’t be less than two months’ wage, unless the contract sets its own amount.

Is it paid instead of the end-of-service award?

No. Article 77 compensation is for ending the contract unlawfully. The end-of-service award is a separate right, so you can be owed both.

Which wage is used?

The actual wage: your basic salary plus fixed allowances, such as housing and transport, not the basic salary alone.

What counts as a part year?

This calculator counts part years in proportion, so 6 years and 6 months counts as 6.5 years. A labour court decides the final amount in a dispute.

What if my contract names a compensation amount?

Article 77 applies only when the contract doesn’t set its own compensation for unlawful termination. If it does, the contract amount applies.

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