🇸🇦 Saudi Arabia final settlement calculator
Estimated final settlement · 🇸🇦 Saudi Arabia
SARÂ 8,333
Service: 5 years
- End-of-service gratuity
- SARÂ 8,333
- Resignation reduces the award to two thirds at this length of service.
Wage used: SAR 5,000/month · Daily rate: SAR 166.67 (÷30)
Sending it home?
…
Mid-market rate. Banks and exchange houses often add 1 to 3% in hidden fees.
We may earn a commission from these links at no cost to you. Rates by ExchangeRate-API.
What goes into a final settlement
- Gratuity: your end-of-service benefit, calculated from your service length and wage.
- Unpaid salary: days worked in your last month that have not been paid yet (full salary including allowances).
- Leave encashment: unused annual leave paid in cash, at the daily wage (monthly wage ÷ 30).
- Notice pay: if either side ends the contract without serving notice, the notice period is paid out.
- Deductions: loans, salary advances or other amounts you owe the employer.
How gratuity works in Saudi Arabia
- Half a month's wage for each of the first 5 years.
- One full month's wage for each year after 5 years.
- Part years are paid pro rata.
- Calculated on your last wage. There is no upper cap.
If you resign
If you resign: under 2 years you get nothing, 2 to 5 years one third, 5 to 10 years two thirds, 10+ years the full award. Article 87 exceptions (force majeure, or a woman resigning within 6 months of marriage or 3 months of childbirth) get the full award.
Good to know
- If the employer ends the contract (other than under Article 80), you get the full award for your whole service.
Gratuity examples in SAR
Employer ended the contract, salary used for gratuity, no unpaid leave.
| Monthly salary | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SARÂ 3,000 | SARÂ 1,500 | SARÂ 4,500 | SARÂ 7,500 | SARÂ 22,500 |
| SARÂ 5,000 | SARÂ 2,500 | SARÂ 7,500 | SARÂ 12,500 | SARÂ 37,500 |
| SARÂ 8,000 | SARÂ 4,000 | SARÂ 12,000 | SARÂ 20,000 | SARÂ 60,000 |
| SARÂ 12,000 | SARÂ 6,000 | SARÂ 18,000 | SARÂ 30,000 | SARÂ 90,000 |
| SARÂ 20,000 | SARÂ 10,000 | SARÂ 30,000 | SARÂ 50,000 | SARÂ 150,000 |
Gratuity by years of service
Frequently asked questions
How is gratuity calculated in Saudi Arabia?
Half a month's wage for each of the first 5 years. One full month's wage for each year after 5 years. Part years are paid pro rata. Calculated on your last wage. There is no upper cap.
Do I get gratuity if I resign in Saudi Arabia?
If you resign: under 2 years you get nothing, 2 to 5 years one third, 5 to 10 years two thirds, 10+ years the full award. Article 87 exceptions (force majeure, or a woman resigning within 6 months of marriage or 3 months of childbirth) get the full award.
Are allowances included in gratuity?
Saudi law uses your last actual wage: basic salary plus fixed allowances such as housing and transport.
Is the daily wage based on 30 days or 365 days?
Saudi Arabia uses the monthly wage divided by 30 to get a daily wage.
Which law is this based on?
Saudi Labor Law, Articles 84, 85 and 87 (as amended, in force 19 Feb 2025). Enforced by the Ministry of Human Resources and Social Development (HRSD). Last checked by us on 5 October 2026.
Sources
Saudi Labor Law, Articles 84, 85 and 87 (as amended, in force 19 Feb 2025). Last checked 5 October 2026.
This is an estimate, not legal advice. If your employer disagrees, contact the Ministry of Human Resources and Social Development (HRSD).