End-of-service award when you resign in Saudi Arabia: how much and how it is calculated

October 26, 20263 min read

You have decided to resign, and the first question is what your award will be. It depends on three things: your last wage, your length of service and your contract type. This guide sets out the shares the Labor Law fixes, with figures worked the way Qiwa's calculator works them, and what changed in 2025.

First, the full award (Article 84)

Before any share, the full award is worked out: half a month's wage for each of the first five years and a full month's wage for each year after. The wage is the last actual wage, basic pay plus allowances such as housing and transport. Parts of a year count in proportion.

For example, a wage of 10,000 and 7 years of service: the first 5 years are 5 × 5,000 = 25,000, the two after are 2 × 10,000 = 20,000, and the full award is SAR 45,000.

Then, the resigning worker's share (Article 85)

If you resign from a fixed-term contract, you get part of the full award by your continuous service:

Under 2 years: nothing
2 to 5 years: one third
Over 5 and under 10 years: two thirds
10 years or more: the full award

Exactly five years is still a third; two thirds start once you pass five.

Worked examples

All on a fixed-term contract, with the same figures Qiwa's calculator gives:

Wage 6,000, 3 years: full award 9,000, a third SAR 3,000.
Wage 9,000, 4 years: full award 18,000, a third SAR 6,000.
Wage 10,000, 7 years: full award 45,000, two thirds SAR 30,000.
Wage 10,000 from 1/10/2018 to 1/10/2025: seven years and a day, two thirds SAR 30,018.52.
Wage 12,000, 12 years: the full award, SAR 114,000.

Open-ended contracts after the 2025 amendments

The Labor Law amendments in force from 19 February 2025 define resignation as the worker ending a fixed-term contract. An open-ended contract ends by either side's notice under Article 75, and Qiwa's calculator gives the full award in that case, without Article 85's share.

The notice period for a monthly-paid worker is 30 days if you end the contract and 60 days if the employer does. The side that ends it without notice owes the other the wage for the notice period.

Check your contract type on Qiwa before you calculate: the share differs between fixed-term and open-ended.

When a resigning worker gets the full award

In these cases Article 85's share does not apply even though you left:

You left for a reason beyond your control (Article 87).
A woman ended her contract within 6 months of marriage or 3 months of giving birth (Article 87).
You left because the employer broke the contract or its obligations, such as not paying the wage (Article 81).

Before you hand in your resignation

A resignation is submitted in writing on Qiwa, with no deferred date, which the law does not allow. The contract ends on acceptance, or after 30 days without an answer; the employer may postpone acceptance by up to 60 days with a written explanation (Article 79 bis). You may withdraw it within 7 days unless it has been accepted.

Once the contract ends, the employer pays your dues within two weeks when you ended it (Article 88): the award, pay for leave not taken and any unpaid wages.

Resigning from a fixed-term contract earns a third from two years, two thirds past five and the full award from ten. An open-ended contract ended with notice earns the full award as Qiwa calculates it. Work out your exact figure, then get your CV ready for the next job.

Work out your resignation award in the end of service calculator