UAE gratuity calculator
End-of-service gratuity under Federal Decree-Law No. 33 of 2021.
Your Saudi end-of-service award, resignation rules included
Calculate the end-of-service award (EOSB) under the Saudi Labor Law — Articles 84, 85 and 87 — from the last wage, the dates of service and how the employment ended. Rules checked on 2 October 2026.
Article 84 sets the award; Article 85 reduces it when the worker resigns; Article 87 lists the cases where a worker who leaves still receives it in full.
| Length of service | Contract ended by the employer or expired | Worker resigned |
|---|---|---|
| Under 2 years | Half a month’s wage per year | No award |
| 2 to 5 years | Half a month’s wage per year | One third of the award |
| More than 5, under 10 years | Half a month’s wage for each of the first 5 years, then one month’s wage per year | Two thirds of the award |
| 10 years or more | Half a month’s wage for each of the first 5 years, then one month’s wage per year | The full award |
Wage used: the last wage, meaning the basic wage plus all other due increases. Part-years count in proportion. Under Article 87 a worker who leaves because of force majeure, or a female worker who resigns within 6 months of marriage or 3 months of giving birth, receives the full award.
Source: Saudi Labor Law (Royal Decree No. M/51), Articles 84, 85 and 87, as published by the Ministry of Human Resources and Social Development, End-of-Service Award Regulations. Last reviewed 2 October 2026.
A monthly wage of SAR 12,000 (for example SAR 8,000 basic plus SAR 4,000 allowances), calculated with the rules above.
| Service | Award if the contract ended or expired | Award if the worker resigned |
|---|---|---|
| 4 years | SAR 24,000 | SAR 8,000 |
| 8 years | SAR 66,000 | SAR 44,000 |
| 12 years | SAR 114,000 | SAR 114,000 |
For the rest of the Saudi picture, see Saudi Arabia overtime rules in 2026 and UAE vs Saudi Arabia for HR and payroll teams, or explore HCM software built for multi-country payroll.
TimeTrax Separation Management automates final settlement calculations with payroll data, so every exit is worked out from the same record — not rebuilt in a spreadsheet each time someone leaves.
Under Article 84 of the Labor Law the award is half a month’s wage for each of the first five years of service and one month’s wage for each year after that, calculated on the last wage, with part-years counted in proportion.
On the last wage, which the Ministry of Human Resources describes as the basic wage plus all other due increases — so regular allowances such as housing and transport are included.
Under Article 85: nothing if you resign before two years of service, one third of the award after two to five years, two thirds after more than five and under ten years, and the full award after ten years or more.
Five years at half a month’s wage a year is two and a half months’ wage: SAR 30,000 on a monthly wage of SAR 12,000. A worker who resigns at exactly five years receives one third of that under Article 85: SAR 10,000.
Under Article 87, when the worker leaves because of force majeure, or when a female worker resigns within 6 months of her marriage or within 3 months of giving birth.
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End-of-service gratuity under Federal Decree-Law No. 33 of 2021.
Monthly salary tax and take-home pay under the 2026-27 FBR slabs.