End of Service Gratuity After Resignation in Saudi Arabia
Quick answer: If you resign from a private-sector job in Saudi Arabia, you get nothing with less than 2 years of service, one third of your end-of-service award with 2 to 5 years, two thirds with more than 5 and less than 10 years, and the full award with 10 years or more. This is Article 85 of the Saudi Labor Law.
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The resignation table (Article 85)
| Years of service | Share of the award |
|---|---|
| Less than 2 years | Nothing |
| 2 to 5 years | One third (1/3) |
| More than 5 and less than 10 years | Two thirds (2/3) |
| 10 years or more | Full award |
Exactly 2 years and exactly 5 years both fall in the one-third band. Exactly 10 years gets the full award.
How to calculate it in two steps
- Work out the full award as if the employer ended the contract: half a month of your last wage for each of the first 5 years, then one full month for each year after that (full guide).
- Multiply it by your resignation share from the table above.
Worked examples
| Service | Last wage | Full award | Share | You receive |
|---|---|---|---|---|
| 1 year 8 months | 8,000 SAR | 6,666.67 SAR | Nothing | 0 SAR |
| 3 years | 6,000 SAR | 9,000 SAR | 1/3 | 3,000 SAR |
| 6 years | 10,000 SAR | 35,000 SAR | 2/3 | 23,333.33 SAR |
| 10 years | 10,000 SAR | 75,000 SAR | Full | 75,000 SAR |
How the 6-year row works: first 5 years = 5 × 0.5 × 10,000 = 25,000 SAR; sixth year = 1 × 10,000 = 10,000 SAR; full award = 35,000 SAR; two thirds = 23,333.33 SAR.
Resignation vs. termination vs. contract end
The reduction applies only when you resign. If your employer ends the contract, or a fixed-term contract simply runs out and is not renewed, you get the full award, even with less than 2 years of service. So before you resign, check whether your contract is about to end anyway.
When you still get the full award (Article 87)
- You left because of force majeure beyond your control.
- A female worker resigns within 6 months of her marriage or within 3 months of giving birth.
If you leave because your employer seriously broke the contract or the law, the Labor Law's rules on leaving without notice may keep all your rights. Check your case with HRSD or a lawyer before you act.
Before you hand in your resignation
- Check your notice period in the contract, so you do not owe the employer compensation.
- Count your service to the exact day. A few weeks can move you into a better band, for example from 4 years 11 months to over 5 years.
- Ask for your final settlement in writing: last salary, end-of-service award and unused leave (final settlement guide).
- Payment is due within two weeks when the worker ends the contract (Article 88).
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Frequently asked questions
Do I get end of service if I resign before 2 years?
No, unless an Article 87 case applies. You still get your last salary and unused leave.
I resigned after exactly 5 years. Is it one third or two thirds?
One third. Two thirds starts only after more than 5 years.
Does resigning after 10 years give the full award?
Yes. At 10 years or more, resignation does not reduce the award.
Do expats get the same resignation rules?
Yes. Article 85 applies to Saudi and non-Saudi private-sector employees.
My contract ended and was not renewed. Is that a resignation?
No. A fixed-term contract that ends on its date is not a resignation, so the full award applies.
Official sources
This guide explains the general rules. It is not legal advice.