# مكافأة نهاية الخدمة — Saudi end of service calculator

Source page: https://valem.run/calculators/saudi-arabia/gratuity

Saudi end-of-service is half a month's wage per year for the first five years, then a full month per year beyond, for a terminated contract.

**Tax year:** 2026

## How it is calculated

Saudi Arabia has no personal income tax, so net equals gross for expatriate employees. The key calculation is the end-of-service award under Article 84.

For a terminated contract the award is half a month's wage for each of the first five years and a full month per year beyond. Resigning cuts it sharply: nothing under two years, one third from two to five years, two thirds from five to ten, and the full amount only after ten. Pick how the employment ended in the calculator. Estimate, not legal advice.

## Worked example

With Monthly wage of 8,000 SAR, this model computes End-of-service award of 16,000 SAR.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `wageMonthly` | Monthly wage | number |
| `years` | Years of service | number |
| `leaving` | How the employment ended | string |

## Sources

- [Labour Law (Royal Decree M/51), art. 84 — end-of-service award](https://www.hrsd.gov.sa/sites/default/files/2023-02/Labor.pdf) (checked 2026-10-05)
- [Labour Law (Royal Decree M/51), art. 85 — reduction on resignation](https://www.hrsd.gov.sa/sites/default/files/2023-02/Labor.pdf) (checked 2026-10-05)

## What this page claims

The Valem engine reproduces this model's formula through 3 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/saudi-arabia/gratuity.json
- Compute by URL: https://valem.run/calculators/saudi-arabia/gratuity.json?wageMonthly=8000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `saudi-arabia/gratuity`)