Your end-of-service benefit is one part of the money to reconcile when a job ends. A correct estimate starts with the wage used for the award, your exact service period and why the employment relationship is ending. A headline salary multiplied by years is not enough.
How the standard calculation works
Under the ordinary rules described by HRSD’s end-of-contract guidance, the full award accrues at half a month’s wage per year for the first five years and a month per year afterwards. Partial years count proportionately. Ordinary resignation can reduce the award: one third for service from two through five years, two thirds above five but below ten, and the full award from ten years. These are general rules, not a classification of every termination case.
Worked example: six years of service
Assume SAR 8,000 is the correct monthly wage for the award and the employee has exactly six qualifying years. This is an illustration, not a decision about a particular contract.
| Calculation step | Amount |
|---|---|
| First five years: 5 × SAR 4,000 | SAR 20,000 |
| Sixth year: 1 × SAR 8,000 | SAR 8,000 |
| Full award | SAR 28,000 |
| Ordinary resignation, two-thirds share | SAR 18,666.67 |
The difference between the full award and the resignation figure is substantial. Before using either result, check whether “resignation” accurately describes the end of your contract. Contract expiry and other termination circumstances need their own assessment; do not select resignation simply because you plan to leave the country.
Which salary should you enter?
Collect your contract, latest payslip and an explanation of the employer’s calculation. Ask which recurring pay elements have been included and how variable compensation has been treated. Do not assume the gross-to-net salary tool’s contribution wage is also the correct gratuity wage: the two calculations serve different purposes.
Use our end-of-service calculator for an estimate. Its years-based inputs do not resolve disputed dates, excluded service or exceptional legal circumstances. Compare the result with the official HRSD calculator and seek case-specific guidance if they differ.
Build a final-settlement worksheet
Keep separate rows for the gratuity, any salary still due, leave amounts quoted by the employer, documented reimbursements and proposed deductions. Enter the employer’s figure beside your own calculation and record the evidence for each difference. This makes it easier to discuss one issue at a time.
Before signing an acknowledgment, save the calculation and payment evidence. A calculation document and money actually received are two different records. If you are relocating, use the leaving-Saudi financial checklist to coordinate banking and remittances without assuming every payment will arrive on your travel date.
Frequently Asked Questions
Is gratuity the same as my final salary? No. Keep them as separate settlement items so neither is accidentally omitted or counted twice.
Can I use a rounded number of years? Use the most accurate qualifying service period available. Rounding can materially change the award near a threshold.
Does a calculator settle an employment dispute? No. It estimates a result from the assumptions entered; it does not establish the correct wage, service dates or legal reason for termination.