How to use it
- Enter your first and last working day.
- Enter your last monthly wage including housing, transport and other regular allowances.
- Choose how the job ended. The page applies the resignation fraction or the full-award exceptions for you.
The formula
Award = Wage × ½ × min(Years, 5) + Wage × max(Years − 5, 0)
Wage is the last monthly wage including allowances (Article 2). On resignation the award is multiplied by 0, ⅓, ⅔ or 1 depending on length of service (Article 85).
Worked example
You worked 8 years and your last wage was SAR 10,000 a month (basic plus allowances).
First 5 years: 5 × ½ × 10,000 = SAR 25,000. Next 3 years: 3 × 10,000 = SAR 30,000. Full award: SAR 55,000.
If you resigned, 8 years falls in the "over 5 and under 10 years" band, so you receive two thirds: SAR 36,666.67.
Assumptions
- Part years are paid in proportion (Article 84).
- Resignation bands: under 2 years nothing; 2 to 5 years one third; over 5 and under 10 years two thirds; 10 years or more the full award (Article 85).
- Full award despite resignation: force majeure, or a woman ending her contract within 6 months of marriage or 3 months of giving birth (Article 87), or leaving because of the employer’s breach (Article 81).
- The 2025 amendments changed how resignations are accepted but not the award rules in Articles 84–88.
Common mistakes
- Calculating on basic salary alone. Article 2 defines the wage as the actual wage including allowances.
- Forgetting that the resignation date fixes your length of service. Under the amended law, a resignation not answered within 30 days is deemed accepted.
Questions
What counts as "wage" for the award?
The actual wage: basic salary plus allowances and regular increases. Commissions and similar variable pay can be excluded if you agreed that in writing.
I resigned after exactly 5 years. One third or two thirds?
Article 85 gives one third for service of 2 years up to 5 years, and two thirds only for more than 5 years. At exactly 5 years, one third applies.
Estimates only. Your actual figures depend on the provider’s terms.