Saudi Labor Law · Articles 84 & 85
End-of-Service Benefit
Calculator · Saudi Arabia
Calculate your gratuity entitlement based on Saudi Labor Law. Enter your salary, service years, and reason for leaving to get your instant estimate.
Resignation < 2 yrs
No ESB
Article 85
Resignation 2–5 yrs
⅓ Gratuity
of full amount
Resignation 5–10 yrs
⅔ Gratuity
of full amount
Terminated / 10+ yrs
Full ESB
complete entitlement
⚖️ ESB Calculator · Saudi Labor Law
Articles 84 & 85 · Unlimited & Fixed-Term Contracts
SAR
Basic salary only — exclude housing & transport allowances
YRS
Decimals OK · 7.5 = 7 years 6 months
Full gratuity applies. Employer-terminated workers receive full entitlement regardless of years served.
⚠️ Please enter your salary and years of service.
Total Gratuity Entitlement
SAR 0.00
FULL
Daily Wage
—
SAR / day
½ Month Rate
—
per yr (≤5 yrs)
Full Month Rate
—
per yr (>5 yrs)
Service Period
—
years
📋 Calculation Breakdown
ESB Entitlement at a Glance
⚖️ Entitlement by Service Duration & Reason
Private Sector · Expats
| Service Duration | If Resigned | If Terminated | Contract End / Mutual |
|---|---|---|---|
| Less than 2 years | No ESB | Full ESB | Full ESB |
| 2 to less than 5 years | ⅓ of Full | Full ESB | Full ESB |
| 5 to less than 10 years | ⅔ of Full | Full ESB | Full ESB |
| 10 years or more | Full ESB | Full ESB | Full ESB |
How Full Gratuity is Calculated
🧮 Gratuity Formula · SAR
Based on basic salary
| Service Period | Rate per Year | Formula | Example (SAR 10,000/mo) |
|---|---|---|---|
| First 5 years | ½ month salary | Salary ÷ 2 × Years | 5,000 × 5 = SAR 25,000 |
| Each year after 5 | 1 full month salary | Salary × Years beyond 5 | 10,000 × 2 = SAR 20,000 |
| Partial year | Pro-rated | (Salary × Months) ÷ 12 | 3 months = SAR 2,500 |
Common ESB Scenarios
📊 Real-World Calculation Examples
Based on Saudi Labor Law 2026
| Scenario | Salary | Service | Reason | ESB Payable |
|---|---|---|---|---|
| Resigned early | SAR 12,000 | 3 years | Resignation | SAR 6,000 (⅓ of 18,000) |
| Resigned mid-career | SAR 15,000 | 7 years | Resignation | SAR 45,000 (⅔ of 67,500) |
| Terminated (1.5 yrs) | SAR 9,000 | 18 months | Termination | SAR 6,750 (full) |
| Contract completed | SAR 10,000 | 2 years | Contract end | SAR 10,000 (full) |
| Resigned at 10 years | SAR 20,000 | 10 years | Resignation | SAR 150,000 (100% — no reduction) |
| Long service (7yr 3mo) | SAR 8,000 | 7y 3mo | Termination | SAR 38,000 (full) |
Understanding End-of-Service Benefits in Saudi Arabia
Legal Right
ESB is a mandatory right for all private-sector workers, including expatriates. Both fixed-term and unlimited contracts qualify under Articles 84 and 85.
What's Included
Calculated on basic salary only. Housing, transport, and other variable allowances are excluded unless explicitly included in your contract.
Payment Timeline
Employer must pay within 1 week if they terminate the contract. If you resign, the employer has up to 2 weeks to settle all dues.
Exit Clearance
Unpaid ESB can block your final exit clearance on the Qiwa platform. Ensure your gratuity is settled before initiating departure procedures.
Special Full-Gratuity Provisions
Under Article 87, certain circumstances entitle workers to full ESB regardless of service length or reason for leaving:
- Force majeure — circumstances entirely beyond the employee's control
- Female employee terminating within 3 months after childbirth
- Female employee terminating within 6 months of marriage
- Article 81 termination — employer-side circumstances beyond employee's control
- Death or total disability — full gratuity payable to estate or beneficiaries
When ESB May Be Forfeited
- Resignation with less than 2 years of service on an unlimited contract
- Early resignation from a fixed-term contract without special circumstances
- Termination for serious violations under Article 80 of Saudi Labor Law
- Abandonment of work without proper notice or employer approval
Probation Period & Service Calculation
Your ESB service count begins from your first day of employment. However, probationary periods under 3 months are typically excluded from final ESB calculations under Article 53 of the Saudi Labor Law. Periods of unpaid leave are also generally excluded from total service years.
What to Do If Your ESB Is Unpaid
- Contact HRSD hotline: 19911
- File a complaint via Qiwa platform (qiwa.sa) dispute tools
- Visit your local Labor Office for mediation
- Consult a licensed Saudi labor law attorney
Frequently Asked Questions
No. ESB is calculated on basic salary only under Article 84. Housing allowance, transport, and other allowances are excluded from the calculation base unless your contract explicitly states otherwise.
At exactly 10 years of service, you are entitled to full gratuity — the same as if you had been terminated. The 2/3 reduction only applies to service between 5 and under 10 years. This is explicitly stated in Article 85 of Saudi Labor Law.
Saudi Labor Law requires the employer to pay all dues within 1 week of terminating the contract, or within 2 weeks when the employee resigns. Delays can be reported to HRSD via the Qiwa platform or by calling the hotline at 19911.
Yes. Periods of unpaid leave are generally excluded from total service years when calculating ESB. Your employer will typically deduct these periods from your final service duration.
Yes. Completing a full fixed-term contract entitles you to full gratuity under Article 84. However, if you resign before the contract term ends without special circumstances, you typically forfeit your ESB entitlement.
An employer may deduct amounts owed to the company from your ESB — such as outstanding loans or advances — if clearly documented. However, they cannot reduce the gratuity below the statutory amount without justification.
ESB is based on your last drawn monthly wage, not an average. If your salary increased over your service period, the higher final salary benefits you as it is the only figure used for the calculation.
Disclaimer: This calculator is based on Saudi Labor Law Articles 84 and 85 as of 2026 and is for informational purposes only. Actual ESB entitlement may vary based on your contract terms, unpaid leave periods, salary components, or specific circumstances. For advice on your individual situation, consult your HR department or the Ministry of Human Resources and Social Development (HRSD) at 19911.