Labor law · Article 84
End-of-Service Calculator (EOS) — Saudi Arabia
Calculate the end-of-service award under Article 84 of the Saudi Labor Law. Supports termination and resignation tiers.
How is this calculated?
EOS = (Years × MonthlyWage) − Resignation reduction. First 5 years: ½ × monthly wage × years. After 5 years: 1 × monthly wage × years. Resignation: 1/3 if 2–5 yrs, 2/3 if 5–10 yrs, full after 10 yrs (Art. 84).
Notes
- If the employee resigns under Article 81 (e.g., employer breach), the full award is paid regardless of tenure.
- Default: monthly wage = last basic + housing (most common interpretation). Toggle to include transport and other allowances.
- Source: Saudi Labor Law — Article 84
- These calculators are for informational purposes only and are not financial, tax, legal, or professional advice. Verify the result with an official source or qualified advisor.
The Saudi end-of-service award (مكافأة نهاية الخدمة) is governed by Article 84 of the Saudi Labor Law. It pays half a month per year for the first 5 years of service and a full month per year after that. If you resign rather than being terminated, the award is reduced — and it can be forfeited entirely in the first 2 years. This calculator handles all of those tiers.
How to use this calculator
- 1 Pick the reason for leaving: employer termination, resignation, or Article 81 (employer breach, full award).
- 2 Enter your years of service, last basic salary, and last housing allowance.
- 3 Optionally include transport and other allowances in the monthly wage.
- 4 See the breakdown: first-5-years portion, after-5-years portion, any resignation reduction, and the final net EOS payable.
Frequently asked questions
What is Article 84 EOS in Saudi Arabia?
Article 84 of the Saudi Labor Law is the end-of-service award rule. It entitles an employee at the end of the contract to half a month of pay for each of the first 5 years of service, and one full month for each year after that, calculated on the last basic + housing (or all allowances, depending on company policy).
How is EOS calculated on resignation?
For resignation: no award if you leave before completing 2 years. 1/3 of the full award between 2 and 5 years. 2/3 between 5 and 10 years. Full award after 10 years. (Article 84 of the Saudi Labor Law.)
Is end-of-service calculated on basic or total salary?
By law, EOS is based on the last basic salary plus housing allowance. Some companies include transport and other allowances in the EOS wage — this is a policy choice and can be more generous to the employee. This calculator lets you toggle that on.
Is EOS taxed in Saudi Arabia?
No. End-of-service awards are not subject to income tax in KSA. GOSI contributions have already been paid during employment, and the payout itself is tax-free.
What is Article 81 EOS in KSA?
Article 81 lists situations where the employee can leave and still claim the full end-of-service award — for example, if the employer fails to meet contractual obligations, or there is a workplace hazard. The full (unreduced) EOS applies regardless of tenure.