Saudi end-of-service award: how to calculate it
The half-month and full-month rule, what changes when an employee resigns, which wage to use, partial years, and three worked examples.
Clear explanations of the rules you deal with every month, with worked examples and pointers to official sources.
RafiqHR guides explain the Saudi labour rules that HR and payroll teams deal with every month: the end-of-service award under Articles 84 and 85, GOSI contributions, the Wage Protection System and Mudad, and Nitaqat Saudisation, with worked examples and pointers to official sources. They are general information, not legal advice.
The half-month and full-month rule, what changes when an employee resigns, which wage to use, partial years, and three worked examples.
Who pays what for Saudi and non-Saudi employees, how the contributory wage is worked out, the monthly cap, and what changed with the Social Insurance Law of 2024.
What WPS requires, how Mudad fits in, what goes into the monthly wage file, why establishments fall out of compliance, and a monthly checklist.
The Nitaqat bands, how the Saudisation rate is measured, who counts and how much, what each band means for your services, and how to plan ahead.
End of service (Articles 84 and 85), overtime (Article 107, amended in 2025) and annual leave (Article 109) under the Saudi Labour Law, checked against HRSD’s official texts, with the calculators that estimate each.
End-of-service gratuity (Article 51), overtime (Article 19) and annual leave (Article 29) under Federal Decree-Law No. 33 of 2021, checked against the UAE Legislation portal, with the calculators that estimate each.
The Article 85 table, the cases where a resigning employee still gets the full award, and worked examples at 3, 7 and 12 years of service.
Why 10 years of service is the point where a resigning employee keeps the full award, how much it is, and worked examples at 10 years, 10 years and 4 months, and just under 10.
Why expatriates get the end-of-service award under the same Labour Law rules as Saudis, why it comes from the employer and not GOSI, and the order of the final settlement and final exit.
The award and the leave balance are two separate amounts: how each is calculated, why leave days do not extend the service, and three worked examples.
What GOSI covers for expatriate employees, how the 2% employer contribution is calculated, why nothing is deducted from the salary, and how GCC nationals differ.
The employee's GOSI share under the earlier and the new Social Insurance Law, the wage it is taken from, the 45,000 SAR cap, worked examples and how to check the payslip line.
Why every establishment with even one worker is now covered by WPS, how the 2020 phases brought small businesses in, what the monthly file needs, and a checklist for an owner-run payroll.
What Article 98 says about Ramadan hours, who it covers, how overtime is paid if a Muslim worker works longer, and a practical way to plan rosters for mixed teams.
What the developed version of Nitaqat changed in 2021, what HRSD announced for the new phase from 2026, what has not changed in how Saudis are counted, and how to plan.
End-of-service gratuity (Article 61), overtime (Articles 71 and 72) and annual leave (Article 78) under Oman’s 2023 Labour Law, plus how the Social Protection Law will replace gratuity for non-Omani workers, with the calculators that estimate each.
End-of-service gratuity (Article 54), overtime and rest-day work (Articles 74 and 75) and annual leave (Article 79) under Qatar Labour Law No. 14 of 2004, checked against the official Al Meezan portal, with the calculators that estimate each.
End-of-service indemnity (Articles 51 to 53), overtime and rest-day work (Articles 66 to 68) and annual leave (Article 70) under Kuwait Labour Law No. 6 of 2010, checked against the official gazette text, with the calculators that estimate each.
A comparison table of end-of-service, overtime and annual leave rules in five GCC countries, with the article behind each rule and the official source it was checked against on 20 October 2026.
This is general information to help you understand the topic. It is not legal advice. Rules and rates change: always check the official text on the relevant authority’s platform and consult a qualified adviser before acting.
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