Saudi End of Service Gratuity & Severance Rules (Articles 84 & 85)
Calculate statutory End of Service Award (EOSB) under Saudi Labor Law: Article 84 termination formula, Article 85 resignation ratios, and wage base definitions.
Direct Statutory Synthesis
How Saudi End of Service Gratuity (EOSG) is Calculated: Under Article 84 of the Saudi Labor Law (Royal Decree M/51), statutory severance is computed on the employee's last actual monthly wage (basic salary plus regular fixed allowances). When employment ends via employer termination or contract expiration, the employee is entitled to half a month's wage for each of the first five years of service, and one full month's wage for each subsequent year. Under Article 85 (voluntary resignation): zero gratuity for less than 2 years of service; one-third (33.3%) for 2 to 5 years; two-thirds (66.7%) for 5 to 10 years; and the full 100% statutory gratuity for 10 or more continuous years.
Statutory Resignation Entitlement Matrix (Article 85)
| Tenure Duration | Entitlement Share | Statutory Ground |
|---|---|---|
| Less than 2 years | 0% (لا يستحق) | Article 85 / Clause 1 |
| 2 to 5 years | 33.33% (ثلث المكافأة) | Article 85 / Clause 2 |
| 5 to 10 years | 66.67% (ثلثا المكافأة) | Article 85 / Clause 3 |
| 10 years or more | 100% (المكافأة كاملة) | Article 85 / Clause 4 |