Saudi Labor Law guide
End-of-Service Benefit on Resignation in Saudi Arabia
When an employee resigns, the end-of-service award starts with the standard Saudi calculation and is then adjusted according to completed service. This guide explains the usual resignation bands and shows how the estimate is built.
Reviewed against official HRSD guidance on 28 October 2026
Quick answer: resignation entitlement by service length
Less than 2 years
No resignation award under the standard rule.
2 to 5 years
One third of the base end-of-service award.
More than 5 and less than 10 years
Two thirds of the base award.
10 years or more
The full base award.
How to calculate the resignation benefit
1. Calculate the base award
Use half of the last monthly wage for each of the first five years, then one full monthly wage for every later year. Partial years are calculated proportionally.
2. Apply the resignation rate
Multiply the base award by the service-length rate above: 0%, one third, two thirds, or 100%.
Worked example: SAR 8,000 wage and 6 years of service
- First five years: 5 × half of SAR 8,000 = SAR 20,000
- Sixth year: 1 × SAR 8,000 = SAR 8,000
- Base award: SAR 20,000 + SAR 8,000 = SAR 28,000
- Resignation rate after more than 5 but fewer than 10 years: two thirds
- Estimated resignation benefit: SAR 28,000 × ⅔ = SAR 18,666.67
Important exceptions and contract details
Some statutory exceptions, force-majeure situations, disputed termination facts, or contract terms may change the result. The calculator provides an independent estimate and does not decide whether an exception legally applies to a specific case.
Frequently asked questions
Is the last salary or the basic salary used?
The base award generally depends on the last wage. Confirm which wage components apply to your contract and circumstances before relying on an estimate.
Does a partial year count?
Yes. The base award can include a proportional amount for a fraction of a year.
Can an exception give a resigning employee the full award?
Certain statutory exceptions may affect entitlement. Check the current official guidance or seek qualified advice for fact-sensitive cases.
Official source and review note
The formula and resignation bands were reviewed against the Saudi Ministry of Human Resources and Social Development end-of-service guidance. Laws and official interpretations can change, so verify the current rule for consequential decisions.
Read the official HRSD end-of-service guidance