Half a month of wage for each of the first five years, one month for each year after, pro rata for part-years. If you resign, you get nothing under 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years, and the full award after 10.
Source: Saudi Labor Law, Articles 84, 85 and 87 · rule last reviewed 2026-10-23
Last actual wage: basic plus the regular allowances you are paid (housing, transport…). Commissions can be excluded by agreement.
For a monthly wage of SAR 10,000 (an example figure, not a salary benchmark).
| Service | Contract ends | You resign |
|---|---|---|
| 1 year | SAR 5,000 | SAR 0 |
| 3 years | SAR 15,000 | SAR 5,000 |
| 5 years | SAR 25,000 | SAR 8,333 |
| 7 years | SAR 45,000 | SAR 30,000 |
| 10 years | SAR 75,000 | SAR 75,000 |
| 15 years | SAR 125,000 | SAR 125,000 |
Official source to check: Ministry of Human Resources and Social Development (HRSD).
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