Expats in Saudi Arabia can use official government tools to estimate the end-of-service benefit they may receive when their employment ends.
Under Article 84 of the Saudi Labor Law, the standard benefit is calculated using:
- Half of one month’s wage for each of the first five years
- One full month’s wage for every year after the fifth year
- A proportional amount for extra months or days of service
The worker’s last wage is used as the basis for the calculation.
However, some changing payments, such as commissions and sales percentages, may be excluded if this was agreed upon under the rules.
Resignation may reduce the final amount
Workers should check why their employment is ending because resignation can lower the benefit.
According to the Saudi Ministry of Human Resources and Social Development, a worker who resigns receives:
- No benefit for less than two years of continuous service
- One-third of the standard benefit for two to five years
- Two-thirds for more than five but less than 10 years
- The full benefit after at least 10 years
A worker may also qualify for the full benefit in certain cases, including leaving because of force majeure.
Female workers may receive the full amount when ending employment within six months of marriage or three months after giving birth, subject to the conditions under Saudi Labor Law.
A seven-year example in simple numbers
Suppose an OFW’s last monthly wage is SAR4,000 and the worker has completed seven years.
The first five years would produce SAR10,000:
SAR4,000 × ½ × 5 years = SAR10,000
The next two years would produce SAR8,000:
SAR4,000 × 2 years = SAR8,000
The standard benefit would be SAR18,000.
If the worker resigned after seven years, the estimated benefit would generally be two-thirds of that amount, or SAR12,000.
Use the government calculator before leaving
Workers can enter their wage, contract type, reason for ending employment, and service period in the HRSD End-of-Service Benefit Calculator. A similar tool is available through the Qiwa End-of-Service Reward Calculator.
The result is only an estimate. Workers should compare it with their contract, salary records, and employer’s final computation.
Under Article 88, employers generally have one week to settle entitlements when the employer ends the relationship. If the worker ends it, settlement must generally be made within two weeks.