AjrCalc Q&A hub
Saudi Employment Questions and Answers
Start with a practical answer, then use the linked calculator for an estimate or open the detailed guide for the formula, examples, and official source notes.
These answers provide general educational information. They are not legal advice or an official government decision, and individual contracts or case facts may change the outcome.
End-of-service benefit
How is the Saudi end-of-service benefit calculated?
The usual base award is half of the last monthly wage for each of the first five years, then one full monthly wage for each later year. Fractions of a year are calculated proportionally. The final entitlement can also depend on how employment ended.
Do I receive an end-of-service benefit if I resign?
Under the standard resignation bands, service of less than two years generally receives no resignation award; two to five years receives one third of the base award; more than five but less than ten years receives two thirds; and ten years or more receives the full base award. Statutory exceptions may change this.
Does a partial year count toward the end-of-service award?
Yes. Once entitlement exists, the base award can include a proportional amount for the completed fraction of a year. Use exact service dates for a more useful estimate.
Is the end-of-service award based on basic salary or the last wage?
The statutory calculation generally refers to the last wage, but the wage components that apply can depend on the contract and the nature of each payment. Check your contract and current official guidance before relying on a high-stakes result.
Overtime pay
How is overtime pay calculated in Saudi Arabia?
The standard Article 107 method adds the worker's hourly wage to 50% of the basic hourly wage for each overtime hour. AjrCalc keeps the monthly wage and basic wage separate so the estimate can reflect that formula.
Is Saudi overtime simply 1.5 times the basic hourly rate?
Not always. The standard formula uses the hourly wage plus 50% of the basic hourly wage, so using only 1.5 times the basic rate may produce a different result when the total wage includes allowances.
What information do I need to estimate overtime pay?
You need the monthly wage, the basic monthly wage, and the number of overtime hours. Keep payslips and approved time records if the amount will be used in a formal discussion or claim.
Annual leave and unused leave
How many annual leave days does a worker receive in Saudi Arabia?
The standard annual leave entitlement is at least 21 days, increasing to at least 30 days after five consecutive years with the same employer. Contract terms may provide a more generous entitlement.
How is the value of unused annual leave estimated?
A practical estimate multiplies the applicable daily wage by the number of unused leave days. The guide explains the daily-wage method and the distinction between leave salary and payment for an unused balance at employment end.
Can unused annual leave be paid when employment ends?
A worker is generally entitled to payment for accrued leave days not taken when employment ends. The exact balance depends on accrual, leave already taken, contract terms, and employment records.