Final Settlement Calculation in Saudi Arabia: What You Get When You Leave
Quick answer: When a private-sector job in Saudi Arabia ends, your final settlement has three main parts: your salary for the days worked in the last month, your end-of-service gratuity, and pay for annual leave you did not use. Your employer must pay it within one week if they ended the contract, or within two weeks if you did.
What your final settlement includes
| Part | What it is | Rule |
|---|---|---|
| Last salary | Pay for the days you worked in your final month | Your contract |
| End-of-service gratuity | Half a month per year for the first 5 years, one month per year after; reduced if you resign | Articles 84–85 |
| Unused annual leave | Pay for leave days earned but not taken, including part of the current year | Articles 109–111 |
| Other items in your contract | For example a return ticket or a bonus your contract promises | Your contract |
GOSI benefits are separate. They are handled by GOSI, not paid by your employer in the settlement.
1. Last salary
Divide your monthly wage by 30 and multiply by the days you worked in the last month. Example: 8,000 ÷ 30 × 15 days = 4,000 SAR.
2. End-of-service gratuity
The full award is half a month of your last wage for each of the first 5 years, and one full month for each year after that. If you resign, you get nothing under 2 years, one third from 2 to 5 years, two thirds above 5 and under 10 years, and the full award at 10 years or more. See how to calculate gratuity and end of service after resignation.
3. Unused annual leave
You earn at least 21 days of annual leave a year, and at least 30 days after 5 continuous years with the same employer. When the job ends, every day you earned but did not take is paid, including a share for the current year.
A common way to price it: monthly wage ÷ 30 = daily wage, then daily wage × unused days. Your contract or company rules decide which allowances count in the wage. Check your leave balance.
Full worked example
Ahmed's employer ends his contract after 4 years. His last wage is 8,000 SAR (5,500 basic + 2,000 housing + 500 transport). He worked 15 days in his last month and has 12 unused leave days.
| Part | Calculation | Amount |
|---|---|---|
| Last salary | 8,000 ÷ 30 × 15 | 4,000 SAR |
| End-of-service gratuity | 4 × 0.5 × 8,000 | 16,000 SAR |
| Unused leave | 8,000 ÷ 30 × 12 | 3,200 SAR |
| Total final settlement | 23,200 SAR |
If Ahmed had resigned instead after 3 years with a 6,000 SAR wage, 10 days worked in the last month and 20 unused leave days: last salary 2,000 SAR + gratuity 9,000 × 1/3 = 3,000 SAR + leave 200 × 20 = 4,000 SAR = 9,000 SAR. Resigning cuts only the gratuity; salary and leave pay stay the same.
When must it be paid? (Article 88)
- Employer ended the contract: within one week.
- Worker ended the contract: within two weeks.
The employer may deduct work-related amounts you still owe, such as an unpaid advance. Ask for a written breakdown of every deduction.
Final settlement checklist
- Written breakdown of the last salary, gratuity and leave pay
- Exact start and end dates used for the gratuity
- Number of unused leave days and how they were priced
- Any deductions, each with a reason
- Service certificate (experience letter), which the employer gives free of charge
- Return ticket or other items if your contract includes them
If the employer does not pay on time or the amount looks wrong, file a labor complaint with the Ministry of Human Resources (HRSD), which first tries an amicable settlement before the case goes to the labor court.
Calculate your end of service →
Frequently asked questions
Is unused leave paid if I resign?
Yes. Leave you earned and did not take is paid whether you resign or the employer ends the contract.
Is the final settlement taxed?
No. Saudi Arabia has no personal income tax.
Do expats get a final settlement?
Yes. The same Labor Law rules apply to Saudi and non-Saudi private-sector employees.
What if I resigned before 2 years?
You get no gratuity, but you still get your last salary and unused leave pay.
How long can my employer take to pay?
One week if the employer ended the contract, two weeks if you did.
Official sources
- Ministry of Human Resources and Social Development (HRSD): End-of-service award regulations, Labor Law Articles 84–88
- Qoyod: Annual leave balance under the Saudi Labor Law (Articles 109–111)
This guide explains the general rules. It is not legal advice.