End-of-Service Award After 7 years on resignation
You receive two thirds of the award: 3 months of wage.
The Rule That Applies
A worker who resigns after more than five but under ten years receives two thirds of the award (Article 85).
How It Is Calculated
(5 × ½ month) + (2 × 1 month) = 4.5 months
two thirds × 4.5 months = 3 months
Worked Examples
| Monthly wage | Award |
|---|---|
| 5,000 SAR | 15,000 SAR |
| 8,000 SAR | 24,000 SAR |
| 10,000 SAR | 30,000 SAR |
| 15,000 SAR | 45,000 SAR |
| 20,000 SAR | 60,000 SAR |
| 30,000 SAR | 90,000 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.