End of service calculator
How the end-of-service award is calculated
Under Article 84 of the Labor Law, the employer pays an award based on the last wage when the employment ends: half a month's wage for each of the first five years and a full month's wage for each year after. Parts of a year count in proportion.
The wage is the last actual wage: basic pay plus the allowances due, such as housing and transport. The calculator asks for the basic wage and the allowances and works on their total.
The last working day counts as service and a month is 30 days, as Qiwa's calculator counts. Unpaid leave days are taken off the service, as the Ministry of Justice's calculator does.
- First 5 years: (wage ÷ 2) × years
- After 5 years: wage × the years beyond five
- Full award = the two together; the result shows each part and its length
End of service when you resign
If your contract is fixed-term and you resign, Article 85 sets your share of the full award by your continuous service:
- Under 2 years: no award
- 2 to 5 years: one third
- Over 5 and under 10 years: two thirds
- 10 years or more: the full award
Open-ended contracts after the 2025 amendments
The Labor Law amendments in force from 19 February 2025 define resignation as 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. This calculator counts it the same way.
The notice period on an open-ended contract for a monthly-paid worker is 30 days if the worker ends it and 60 days if the employer does. The side that ends it without notice owes the other the wage for the notice period.
When you are owed the full award 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 (Article 81).
When there is no award
- Dismissal for one of the reasons listed in Article 80, such as assault or continuous unexcused absence.
- The contract ended during the probation period (Article 53).
- You resigned from a fixed-term contract before completing two continuous years.
Compensation for ending a contract without valid reason (Article 77)
If the employer ends the contract without a valid reason, you are owed compensation on top of the award, unless your contract sets a different amount:
- Open-ended contract: 15 days' wage for each year of service.
- Fixed-term contract: the wages for the rest of the contract, which is why the calculator asks for the agreed end date.
- Either way, never less than two months' wage.
Unpaid wages
If wages are owed to you, choose the months and days under «Other dues». Each month counts at a full wage and each day at a thirtieth of it, as the Ministry of Justice's calculator counts: a 10,000 wage unpaid for two months and a day is SAR 20,333.33.
Overtime pay (Article 107)
An overtime hour is paid at the hour's wage plus half of the hour's basic wage. A rest day worked is paid at the day's wage plus half of its basic.
An example from the Ministry of Justice's calculator: basic 8,000 and allowances 2,000, an 8-hour day, two extra days and 10 extra hours = SAR 1,516.67.
Pay for leave not taken (Article 111)
If you leave before using the annual leave you are owed, you are paid for it. A day is the monthly wage divided by 30: a 10,000 wage and 15 days of leave is SAR 5,000.
When your dues must be paid (Article 88)
The employer pays within a week of the end if they ended the contract, and within two weeks if you did. The result gives you the date.
Worked examples
- Wage 8,000, 3 years, the contract ended: 3 × 4,000 = SAR 12,000. Resigning from a fixed-term contract: a third = SAR 4,000.
- Wage 10,000, 7 years, the contract ended: 5 × 5,000 + 2 × 10,000 = SAR 45,000. Resigning from a fixed-term contract: two thirds = SAR 30,000.
- Wage 12,000, 12 years, resigned: the full award = 5 × 6,000 + 7 × 12,000 = SAR 114,000.
The labour calculator: the same sums as Qiwa and the Ministry of Justice
The Ministry of Justice's labour calculator works out unpaid wages, the end-of-service award, leave pay, overtime and termination compensation; Qiwa's calculator works out the award by the reason the contract ended. This calculator brings both into one window.
We entered the same figures here as there and got the same results to the halala: the award under Articles 84 and 85, unpaid wages, leave pay, overtime and Article 77 compensation. It is still an estimate: your contract, Qiwa and the labour court decide the final figure.
Detailed guides
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Common questions about end of service
- Do allowances count in the end-of-service award?
- Yes. The Labor Law calculates it on the last actual wage: basic pay plus the allowances due, such as housing and transport. The calculator asks for the basic wage and the allowances and adds them up.
- How much do I get if I resign after 4 years?
- From a fixed-term contract: one third of the full award (Article 85). For a wage of 9,000 the full award is 4 × 4,500 = 18,000, and a third is SAR 6,000. From an open-ended contract ended with notice (Article 75): the full SAR 18,000, as Qiwa calculates it after the 2025 amendments.
- What is the end-of-service award after 5 years?
- Five full years earn two and a half months' wage: 5 × half a month. On a 10,000 wage that is SAR 25,000. Resigning from a fixed-term contract at exactly 5 years earns a third of it; past 5 years, two thirds.
- Is there an award if I resign before two years?
- Resigning from a fixed-term contract before two continuous years earns no award (Article 85), unless you left for a reason beyond your control, or a woman ended her contract after marriage or childbirth within the set period (Article 87).
- Do parts of a year count?
- Yes. Article 84 counts parts of a year in proportion. The calculator counts by the day: the last working day counts and a month is 30 days, as Qiwa's calculator does.
- How are unpaid wages calculated?
- Each month at a full wage, each day at a thirtieth of it. A 10,000 wage unpaid for two months and a day is SAR 20,333.33, the same as the Ministry of Justice's calculator.
- How is overtime pay calculated?
- Under Article 107: the hour's wage plus half of the hour's basic wage. On a basic wage of 8,000, allowances of 2,000 and an 8-hour day, an overtime hour is 41.67 + 16.67 = SAR 58.33.
- When must the employer pay my dues?
- Within a week of the end if the employer ended the contract, and within two weeks if you did (Article 88). The result gives you the date.
- Is the calculator official?
- No, but it counts the way Qiwa's and the Ministry of Justice's calculators do, and examples run on both came out the same to the halala. It is an estimate for private-sector workers on Gregorian contracts; your contract decides the final figure.
- Is my data sent to you?
- No. The whole calculation happens on your device; the wage and dates are sent nowhere.