Saudi employment settlement guide
How to Calculate a Final Settlement in Saudi Arabia
A final settlement is not one separate statutory formula. It is an itemized total of the employment amounts that apply when work ends. This guide explains the common components and how to review them without counting the same amount twice.
Reviewed against official HRSD guidance on 28 October 2026
Common final-settlement components
Unpaid salary
Salary for completed days or periods that have not yet been paid. The calculator estimates this amount using the monthly wage divided by 30.
End-of-service benefit
The estimated award based on the last wage, service length, and how employment ended.
Unused annual leave
The estimated value of accrued leave days not taken when employment ends.
Overtime pay
Approved unpaid overtime estimated from the ordinary hourly wage plus 50% of the basic hourly wage.
Other dues
Confirmed items such as an earned commission or reimbursement. Enter these manually only when supported by records.
Deductions
Documented amounts to subtract. Loans, advances, absences, or disputed deductions require separate verification.
How to review the settlement
1. Gather your records
Use the employment contract, payslips, start and end dates, leave balance, approved overtime, and any written record of other dues or deductions.
2. Calculate each component
Keep salary, end-of-service benefit, unused leave, overtime, other dues, and deductions on separate lines so the calculation stays transparent.
3. Add the dues
Add the positive components to find the total dues before deductions.
4. Subtract documented deductions
Subtract only the deductions that apply to your case, then compare the result with the employer's settlement statement.
Final settlement formula
Estimated net settlement = unpaid salary + end-of-service benefit + unused leave + overtime + other dues − deductions
Worked example
- Unpaid salary: SAR 3,000
- End-of-service benefit: SAR 31,500
- Unused leave: SAR 3,600
- Overtime: SAR 433.33
- Other dues: SAR 500
- Total before deductions: SAR 39,033.33
- Deductions: SAR 250
- Estimated net settlement: SAR 38,783.33
Important checks before relying on the result
The correct settlement can depend on wage components, exact dates, the reason employment ended, approved records, contract terms, and disputed facts. The calculator does not determine whether a disputed payment or deduction is legally valid.
Frequently asked questions
Is the final settlement the same as the end-of-service benefit?
No. The end-of-service benefit is one possible component of the wider final settlement.
Should I enter a bonus or commission under other dues?
Only enter an amount that is earned and supported by your contract, policy, payslip, or another reliable record.
What if the calculator result is negative?
A negative result means the entered deductions exceed the calculated dues. Review the inputs and seek qualified help if the deductions are disputed.
Official sources and review note
The calculator reuses AjrCalc's reviewed end-of-service, annual-leave, and overtime formulas. Other dues and deductions are manual because they depend on individual records. Verify the current official rules before making an important decision.
Review official HRSD end-of-service guidance