End-of-Service Award After 7 years when the contract ends or is terminated
You receive the full award: 4.5 months of wage.
The Rule That Applies
When the contract ends or the employer terminates it, the full award is due (Article 84).
How It Is Calculated
(5 × ½ month) + (2 × 1 month) = 4.5 months
Worked Examples
| Monthly wage | Award |
|---|---|
| 5,000 SAR | 22,500 SAR |
| 8,000 SAR | 36,000 SAR |
| 10,000 SAR | 45,000 SAR |
| 15,000 SAR | 67,500 SAR |
| 20,000 SAR | 90,000 SAR |
| 30,000 SAR | 135,000 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.