End-of-Service Award in Saudi Arabia: Resignation vs Termination, in Riyals
After 7 years on SAR 8,000, the award is SAR 36,000 if your employer ends the contract and SAR 24,000 if you resign. When you lose part of it, and when you get it all.
By the HesabSA team · Updated October 17, 2026 · 6 min read
One question we get all the time: “If I resign now, do I lose my end-of-service award?” The answer depends on two things: how long you've worked, and who ended the contract. The difference can run into tens of thousands of riyals, so it's worth understanding before you hand in your resignation.
We'll use one realistic example: an employee whose actual wage is SAR 8,000 a month (SAR 5,500 basic, SAR 1,750 housing and SAR 750 transport). Every figure comes from our calculator, under the Saudi Labor Law.
How the full award is worked out (Article 84)
- Half a month's wage for each of the first five years.
- A full month's wage for each year after the fifth.
- Parts of a year count pro rata, so six months is half a year.
“Wage” here means the actual wage: basic plus fixed allowances such as housing and transport, unless your contract says the award is on basic only. That one detail can change the amount a lot, so check your contract.
What happens if you resign (Article 85)
- Under 2 years: no award.
- 2 to under 5 years: one third of the award.
- 5 to under 10 years: two thirds.
- 10 years or more: the full award.
| Years of service | Employer ends it | You resign | Difference |
|---|---|---|---|
| 1 | SAR 4,000 | SAR 0 | SAR 4,000 |
| 2 | SAR 8,000 | SAR 2,667 | SAR 5,333 |
| 3 | SAR 12,000 | SAR 4,000 | SAR 8,000 |
| 5 | SAR 20,000 | SAR 13,333 | SAR 6,667 |
| 7 | SAR 36,000 | SAR 24,000 | SAR 12,000 |
| 10 | SAR 60,000 | SAR 60,000 | SAR 0 |
| 15 | SAR 100,000 | SAR 100,000 | SAR 0 |
Award after 7 years
Notice the jumps. Someone who resigns after 4 years and 11 months gets one third; wait one more month and it becomes two thirds. At 10 years it becomes the full award. If you're close to one of these lines, waiting a few weeks can be a big financial decision.
When you get the full award even though you left
- Article 81: you leave because the employer broke the contract or the law, for example by not paying your wages or by abuse.
- Article 87: force majeure, or a woman ending her contract within six months of marriage or three months of giving birth.
- A fixed-term contract ending: a contract running out on its end date isn't a resignation, so the award is in full.
The amounts above are estimates for one example. Put your start date, last working day, wage and reason for leaving into the calculator to see exactly what you're owed, including leave balance and notice:
End-of-Service & Dues CalculatorWork out your award and all your dues, with a ready claim letter.