End-of-service calculator for the private sector

How this is calculated

1. Length of service (Articles 2 and 10): from the start date to the last day of service, in the calendar you choose, assuming continuous service with the same employer.
2. Award wage (Articles 2, 84 and 86): the last actual wage, less any commissions or sales percentages agreed to be left out.
3. Full award (Article 84): half a month's wage for each of the first five years, one month's wage for each later year, and parts of a year in proportion to the time worked.
4. Effect of the reason (Articles 80, 81, 85 and 87): resignation from a fixed-term contract earns a share of the award that depends on the length of service; the Article 80 cases carry no award; the Article 81 and 87 cases carry the full award.
5. Leave pay (Article 111): if you enter an unused balance, its pay is added on the actual wage, with a day at one thirtieth of a month.
6. Settlement date (Article 88): the tool shows the approximate settlement deadline: one week when the employer ended the relationship or the term expired, two weeks when the worker ended the contract.

Award shares on resignation (Article 85)

Since the 2025 amendments, Article 2 defines resignation as ending a fixed-term contract by the worker's written request, accepted by the employer. The tool therefore ties the Article 85 shares to fixed-term contracts, and shows the full award when a worker ends an indefinite-term contract by notice under Article 75. That is also what the Qiwa calculator returned for this reason in a check on 2026-09-28. This is a reading of the text, not an express rule in it, so the tool also shows, for comparison, what the Article 85 shares would give.

How the length of service is counted

• Calendar: Article 10 says all periods and deadlines in the Law are counted in the Hijri calendar unless the employment contract or the work regulations provide otherwise. The tool therefore asks for your contract's calendar. The MOJ labor calculator also separates Gregorian and Hijri contracts; the Qiwa calculator takes Gregorian dates.
• Last day: the last day of service is counted. The Law does not spell this out; the Qiwa calculator does the same.
• Parts of a year: whole years and months between the two dates are counted first, then the remaining days, with a month at 30 days and a year at 360 days when days become fractions. This rests on Article 2, which sets a month at thirty days; Articles 84 and 111 only say part years count "in proportion to the time spent at work". It is a reading the tool applies, and its results matched the Qiwa calculator in checks run on 2026-09-28.
• Thresholds: service is compared with the thresholds as written, in whole years of the contract calendar, so a year is not complete before its last day. Exactly five years stays in the one-third band on resignation, and two thirds apply once service is longer by even one day.

Worked example with hypothetical figures

A last actual wage of SAR 10,000, service from 1 January 2021 to 15 July 2023 on a Gregorian contract, and the employer ended the contract by notice. Service is 2 years, 6 months and 15 days, about 2.5417 years. The award is half a month per year, about 1.2708 months, or SAR 12,708.33. For illustration only; it does not describe any real case.

What the tool does not cover

• Piece-rate or production pay, or a wage made up entirely of commissions or sales percentages, which Article 96 treats separately.
• Part-time work: Article 5 applies the Law to part-time workers only for occupational safety and health, work injuries and what the Minister decides.
• Reasons not listed here, such as agreement of the parties, retirement age, closure of the establishment or the worker's death. The Qiwa calculator includes them.
• Changes of wage or contract type during the service, unpaid absences beyond what Article 2 counts as continuous service, and any deduction of a debt owed to the employer because of the work (Article 88).
• Compensation for termination for an illegitimate reason under Article 77, which you can estimate with the notice period calculator.

Official references

• Qiwa end-of-service reward calculator: the official reference, with the estimated amount and payment dates.
• MOJ labor calculator: a trial guidance version covering the end-of-service award, leave pay and compensation for termination without a legitimate reason.
• The Labor Law text on the Bureau of Experts website (Arabic, the authoritative version).