Work out your exact end-of-service gratuity (ESB) under Saudi Labor Law Articles 84, 85 and 87. Enter your last monthly wage, total service and reason for leaving for an instant, private, fully itemised breakdown — no signup.
Evaluating Saudi Labor Law Articles 84 & 85…
Statutory calculation according to Saudi Labor Law Article 84 tiers.
Key rights, payment deadlines, and legal references for this specific case.
Our Saudi gratuity calculator evaluates your end-of-service entitlement in four strict compliance steps matching the official Ministry of Human Resources and Social Development (HRSD) logic.
Converts your years and additional months into total decimal service years, and checks for probation completion (> 180 days).
Calculates half a month's wage for each of the first 5 years, plus one full month's wage for each subsequent year.
Applies statutory deduction multipliers based on contract type (fixed vs. indefinite) and separation cause (resignation vs. termination).
Displays your net payable gratuity, daily wage rate, and legal payment settlement timelines under Article 88.
Under Article 84 of the Saudi Labor Law, every employee is entitled to an end-of-service reward upon the conclusion of their employment relation. The calculation is based on the worker's last actual wage (basic salary plus regular housing and transportation allowances).
The standard statutory benefit formula is structured in two distinct tenure brackets:
| Service Bracket | Formula Rate | Article |
|---|---|---|
| Years 1 to 5 | Half Month Wage / Year | Article 84 |
| Years 6 and Beyond | Full Month Wage / Year | Article 84 |
| Partial Months | Pro-rated Proportionately | Article 84 |
| Probation (≤ 180 Days) | 0 SAR (Unless contractually agreed) | Article 54/84 |
The reason for employment separation significantly impacts your final payable gratuity. While employer termination generally awards 100% of the calculated gratuity, voluntary resignation under an indefinite contract follows the graduated scale set forth in Article 85.
However, Article 87 carves out important statutory exceptions where full gratuity is protected even upon resignation, including female resignation post-marriage or childbirth, and force majeure events.
| Separation Cause | Tenure | Entitlement % |
|---|---|---|
| Employer Termination | Any (> 180 days) | 100% of Gratuity |
| Fixed-Term Completed | Full Term | 100% of Gratuity |
| Resignation (Indefinite) | Less than 2 Years | 0% (No Entitlement) |
| Resignation (Indefinite) | 2 to < 5 Years | 33.33% (1/3 of Gratuity) |
| Resignation (Indefinite) | 5 to < 10 Years | 66.67% (2/3 of Gratuity) |
| Resignation (Indefinite) | 10+ Years | 100% of Gratuity |
| Resignation (Fixed Early) | Uncompleted | 0% (Breach) |
| Art. 81 / Force Majeure | Any | 100% of Gratuity |
| Female Post-Marriage / Birth | Within 6 mo / 3 mo | 100% of Gratuity |
Review how the statutory formula applies to different employment scenarios under Saudi Labor Law.
Because service is between 2 and 5 years, Article 85 grants exactly one-third of the statutory benefit.
Under Article 85, completing between 5 and 10 years entitles the resigned worker to two-thirds (66.67%).
The worker receives 100% of both tiers, payable within 1 week of termination under Article 88.
Clear, legally grounded answers to the most common questions regarding Saudi gratuity, settlement deadlines, and deductions.
Under Article 84 of the Saudi Labor Law, your full gratuity is calculated using your last monthly wage: half a month's wage for each of the first five years of service, plus one full month's wage for each subsequent year. Fractions of a year are calculated proportionately. The final payout is then adjusted based on your separation reason under Article 85.
Under Article 85 for indefinite contracts: if you resign before completing 2 years of service, you receive zero gratuity. If you have completed between 2 and 5 years, you receive one-third (1/3) of the full benefit. If you have between 5 and 10 years, you receive two-thirds (2/3). If you complete 10 or more continuous years, you receive the full 100% gratuity.
Under Article 2 of the Saudi Labor Law, the calculation is based on your "actual wage" (last monthly gross wage), which includes basic salary plus all regular fixed allowances (housing, transportation, food, telephone). Only irregular variable bonuses and non-guaranteed commissions are excluded, unless specified in your contract.
If a fixed-term contract completes its agreed duration and is not renewed by either party, the employee is entitled to 100% of their end-of-service gratuity under Article 84. However, if the employee resigns before the fixed-term expiration without legal cause under Article 81, they forfeit their gratuity entitlement.
According to Article 88 of the Saudi Labor Law, if the employer terminates the worker's contract, the employer must settle all end-of-service dues within one week (7 days). If the employee resigns, the employer must settle all dues within two weeks (14 days).
Yes. Under Article 87 of the Saudi Labor Law, a female employee who terminates her employment within six (6) months of marriage or within three (3) months of giving birth is entitled to 100% full end-of-service gratuity, regardless of total years served (subject to passing probation).
Article 81 permits an employee to leave work without notice while retaining their full (100%) statutory end-of-service benefits if the employer commits severe violations, such as failure to pay wages, breach of contractual obligations, assault, fraud, or assigning dangerous working conditions.
If employment ends during a standard probation period (up to 180 days with mutual written consent), statutory end-of-service gratuity is generally zero under Saudi Labor Law, unless your employment contract explicitly grants it. Probation must be completed before gratuity begins to accrue.
Yes, but only for legally documented claims such as outstanding company salary advances, authorized loans, or unreturned employer property. Any deduction must comply with Article 92 limitations, and disputed claims must be resolved via the Labor Courts or Ministry of Human Resources amicable settlement offices.
Beyond our Saudi Labor Law tools, access our full collection of client-side web, marketing, and SEO utilities — 100% free with no registration.
H&U Solutions engineers high-performance web applications, specialized financial calculators, and technical SEO architecture for businesses across Saudi Arabia and the GCC.
A premier web development and digital agency engineering high-performance platforms and Advanced AI/GEO tools.
