Saudi end-of-service award: what you get if you resign
How the Saudi end-of-service award is worked out, how much resigning costs you at 2, 5 and 10 years, and when you keep the full amount.
In Saudi Arabia, private-sector employees earn an end-of-service award (often called EOSB) for every year they work. If the employer ends the contract or a fixed-term contract runs out, you get all of it. If you resign, how much you keep depends on how long you’ve been there. Here’s how it works under the Labor Law.
The full award (Article 84)
- Half a month’s wage for each of the first five years.
- A full month’s wage for each year after that.
- Part years count in proportion.
- It’s based on your last wage: basic pay plus the fixed allowances in your contract, such as housing and transport.
If you resign (Article 85)
| Service when you resign | Share you keep | On SAR 10,000 a month |
|---|---|---|
| 1 year | None | SAR 0 (full award would be SAR 5,000) |
| 3 years | One third | SAR 5,000 (of SAR 15,000) |
| 7 years | Two thirds | SAR 30,000 (of SAR 45,000) |
| 12 years | All of it | SAR 95,000 |
The thresholds matter. Resigning just after your fifth anniversary instead of just before it moves you from one third to two thirds, and reaching ten years means you keep the full award. On SAR 10,000 a month, waiting from 4 years 11 months to 5 years lifts what you’d receive from about SAR 8,200 to about SAR 16,700.
When you keep the full award despite resigning (Article 87)
- You leave because of circumstances beyond your control (force majeure).
- A female employee ends her contract within six months of getting married.
- A female employee ends her contract within three months of giving birth.
Practical tips
- Check what your contract counts as “wage”. Fixed allowances normally count; commissions and variable pay can be excluded if the contract says so.
- Note your exact start date. A few days can decide which share of the award you get.
- If your contract promises more than the law, the contract applies.
- Legal summaries of the 2025 amendments to the Labor Law, in force since 19 February 2025, report no change to how the award is calculated.
Work out your award from your own dates and wage with the Saudi end-of-service calculator.
Source
Ministry of Human Resources and Social Development: End of service award