Saudi End of Service Benefits Guide

Article 84 requires the employer to pay an award when employment ends: half a month’s wage for each of the first five years and one month’s wage for each later year. The last wage is the calculation basis, and fractions of a year are prorated. [1]

First calculate the “full award” under Article 84, then ask whether the reason for ending employment triggers a resignation fraction, an exception, or possible forfeiture. Mixing those two stages is a common source of wrong results.

For an estimate, convert service to decimal years as years + months/12 + days/365. In an actual settlement, exact start and end dates and records of absences or unpaid leave may matter more than this approximation.

Do not assume basic salary alone is always the basis, or that every item in the last bank transfer is automatically included. The Labor Law defines wage components and Article 84 refers to the last wage. Review the contract, payslip, and the nature of regular allowances and benefits. [1]

Article 86 permits an agreement excluding all or part of commissions, sales percentages, and similar variable wage elements from the award basis. This makes a variable-commission salesperson’s case unsuitable for an automated calculation without reading the agreement. [1]

Article 87 grants the full award despite resignation when the worker leaves because of force majeure beyond their control. It also grants a female worker the full award if she ends the contract within six months of marriage or three months of giving birth. These exceptions need manual treatment because selecting “resignation” alone may understate the result. [1]

Article 80 may permit termination without an award, notice, or compensation in specified cases and subject to procedural conditions. An employer merely labeling a case “Article 80” is not conclusive, and a calculator cannot establish facts or procedural validity. Classification may also differ between resignation, mutual termination, and expiry of a fixed-term contract. [1]

Domestic workers and some other categories may be governed by separate rules or scope exclusions. Breaks in service, unpaid leave, transfers, and prior settlements can affect counted service. Do not automatically combine two periods without evidence of continuity.

Article 88 requires wages and entitlements to be settled within at most one week when the employer ends the relationship, and within no more than two weeks when the worker ends it. It permits deduction of a work-related debt owed to the employer. [1]

The award is not the entire final settlement. Check unpaid wages, eligible leave balance, commissions, possible notice pay or compensation, deductions, and debts. Do not fold these items into “last wage”; calculate each under its own rule and present a separate settlement statement.

The calculator is insufficient when the parties dispute the reason for termination, disciplinary dismissal is alleged, commissions vary, an Article 86 agreement exists, service was interrupted, a special worker category applies, or notice pay or compensation is claimed. These are evidence and interpretation issues, not arithmetic.

Compare the result with a documented service record, verify the last wage, and read the statutory provisions. For a dispute or material amount, use Ministry channels or consult a licensed professional before signing a final release. [2]