End-of-Service Award After 1 year on resignation
No award is due: the Labor Law requires at least two consecutive years of service for a worker who resigns.
The Rule That Applies
A worker who resigns before two years of service receives no award (Article 85), except in the cases of Article 87.
How It Is Calculated
1 × ½ month = 0.5 months
Worked Examples
| Monthly wage | Award |
|---|---|
| 5,000 SAR | 0 SAR |
| 8,000 SAR | 0 SAR |
| 10,000 SAR | 0 SAR |
| 15,000 SAR | 0 SAR |
| 20,000 SAR | 0 SAR |
| 30,000 SAR | 0 SAR |
Cases That Change the Result
- Resignation due to force majeure, or by a woman within six months of marriage or three months of giving birth, earns the full award (Article 87).
- Dismissal under Article 80 earns no award.
- Service beyond whole years counts the extra months and days in proportion.
Results are estimates under the Saudi Labor Law and the Social Insurance Law and do not replace reading your contract or professional advice. Better terms in your contract or your employer’s policy take precedence. Calculated with the same rules the Madar platform applies in payroll.