How to Calculate Saudi End of Service Award (Articles 84 & 85)
The Saudi End of Service Award (EOSB) is legally calculated using the employee’s last wage (basic plus fixed housing and transport allowances), total service duration, and whether the employment ended through contract termination or voluntary resignation.
Last updated: 2026-10-18
How Article 84 calculates the base reward
Under Article 84 of the Saudi Labor Law, every worker is entitled to an end-of-service gratuity upon contract completion or termination by the employer:
- Half a month’s full wage for each of the first five years of service.
- One full month’s wage for each subsequent year beyond the fifth year.
- Fractions of a year are calculated proportionally based on exact months and days served.
Resignation rules under Article 85
If the employee voluntarily resigns, entitlement percentages apply to the Article 84 total:
- Less than 2 years of service: 0% entitlement (no gratuity).
- From 2 years to less than 5 years: 1/3 (33.33%) of the full reward.
- From 5 years to less than 10 years: 2/3 (66.67%) of the full reward.
- 10 years or more: 100% full entitlement.
How to calculate your gratuity and export a PDF statement
- 1Open the Desktora End of Service Calculator.
- 2Enter your last monthly total salary (basic salary plus regular housing and transport allowances).
- 3Select whether the contract ended normally/by employer or via resignation.
- 4Set your service duration in years, months, and days.
- 5Review the net payable reward and click Download PDF Statement for an official record.
Always include fixed monthly allowances. Discretionary bonuses and irregular overtime are typically excluded from the base calculation unless specified in the contract.
Frequently Asked Questions
Does end-of-service include housing and transport allowances?
Yes. In Saudi Labor Law, the calculation is based on the actual last wage (الأجر الفعلي), which includes basic pay and all regular allowances like housing and transport.
When must the employer pay the end-of-service reward?
If the employer terminates the contract, it must be paid within one week. If the worker resigns, the employer must settle it within two weeks.