End of service after 10 years in Saudi Arabia: the full award
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.
Last updated · 3 min read
End of service after 10 years in Saudi Arabia is 7.5 months of the last actual wage: half a month for each of the first five years and a full month for each of the next five (Article 84). From 10 years of consecutive service, the full award is due even if the employee resigns (Article 85).
Key takeaways
- 10 years of service = 5 × half a month + 5 × a full month = 7.5 months' wage.
- From 10 consecutive years, a resignation no longer reduces the award.
- Each further year adds a full month's wage; part-years count pro rata.
- The award uses the last actual wage, including allowances.
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.
Ten years of service is the most important milestone in the Saudi end-of-service rules. Before it, an employee who resigns loses part of the award; from it, they receive the award in full whoever ends the contract, unless one of the Article 80 cases applies. This guide shows how much that is and why the last weeks before the tenth anniversary matter.
The full award at 10 years
Under Article 84, the award is half a month's wage for each of the first five years and a full month's wage for each year after the fifth. At exactly 10 years:
| Years | Rate | Months of wage |
|---|---|---|
| 1 to 5 | Half a month a year | 2.5 |
| 6 to 10 | A full month a year | 5 |
| Total | 7.5 months |
Every year after the tenth adds a further full month's wage. Part-years count in proportion.
Why 10 years matters on resignation
Article 85 reduces the award when the employee resigns: two thirds for service of more than five and under ten years, and the full award from ten years or more. The service must be consecutive, so the tenth anniversary changes a resigning employee's award from two thirds to the whole amount. For the other bands, see end of service on resignation.
Worked examples
All examples use a last actual wage of 12,000 SAR a month (basic 9,000, housing 2,250, transport 750).
Exactly 10 years, resignation or termination.
- First 5 years: 5 × 0.5 × 12,000 = 30,000 SAR
- Next 5 years: 5 × 1 × 12,000 = 60,000 SAR
- Award: 90,000 SAR, the same whether the employee resigns or the employer ends the contract (outside Article 80).
10 years and 4 months.
- Service after the fifth year: 5 years and 4 months
- 5 × 12,000 + 4/12 × 12,000 = 60,000 + 4,000 = 64,000 SAR
- 30,000 + 64,000 = 94,000 SAR
Resignation at 9 years and 11 months.
- Service after the fifth year: 4 years and 11 months
- 4 × 12,000 + 11/12 × 12,000 = 48,000 + 11,000 = 59,000 SAR
- Full award: 30,000 + 59,000 = 89,000 SAR
- Two thirds, because service is under 10 years: 59,333.33 SAR
One month less service costs this employee 30,666.67 SAR compared with resigning at exactly 10 years, so employees and HR should both check the exact anniversary date before a resignation is dated.
Points to check
- The wage. Use the last actual wage, not the basic wage alone. On 12,000 SAR actual and 9,000 basic, using the basic wage would understate the 10-year award by 22,500 SAR.
- Consecutive service. Confirm the start date and any periods that do not count, such as some unpaid leave.
- Contract history. A renewal or a change of job title with the same employer does not normally restart the service while the relationship continues without a break; check any gap or settlement paid along the way.
- Payment deadline. One week when the employer ends the contract, two weeks when the employee does (Article 88).
Work out any length of service with the end-of-service calculator.
How RafiqHR helps
RafiqHR calculates the award from the employee's effective-dated contract and salary history, so the service length and last actual wage come from the record, not from a spreadsheet. The final settlement shows each band of the calculation and the fraction applied for the reason for leaving.
Frequently asked questions
How much is end of service after 10 years in Saudi Arabia?
Seven and a half months of the last actual wage. Article 84 gives half a month for each of the first five years (2.5 months) and a full month for each year after the fifth (5 months for years six to ten).
Does an employee who resigns after 10 years get the full award?
Yes. Article 85 gives a resigning employee the full award once consecutive service reaches 10 years or more. Below 10 years, the resigning employee receives two thirds if service is more than five years.
Is the award calculated on the basic wage only?
No. The law bases it on the last wage, and Article 2 defines the wage as the actual wage: the basic wage plus allowances such as housing and transport. Commissions may be excluded by agreement under Article 86.
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.
