End-of-service in Saudi Arabia when you resign — the ⅓ and ⅔ rules
Saudi Arabia is one of the few Gulf states where resigning still cuts your end-of-service award. Article 85 sets a sliding scale by length of service, and it applies on top of the normal accrual.
Resigning: nothing under 2 years, one-third at 2–5 years, two-thirds at 5–10 years, and the full award at 10 years or more.
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Frequently asked questions
How much do I get if I resign after 3 years in Saudi Arabia?
You fall in the 2–5 year band, so you receive one-third of your accrued award. Accrual for those years is half a month’s wage per year, so three years accrues 1.5 months — and you would receive one-third of that.
Do I get anything if I resign before 2 years?
No. Under Article 85, resigning with less than two years of service carries no end-of-service entitlement.
Does it differ if my employer terminates me?
Yes, substantially. On employer termination the full accrued award is payable regardless of length of service — the ⅓ and ⅔ reductions apply only to resignation.
Is the Saudi award based on basic salary?
It is calculated on your last wage, which typically includes fixed allowances under your contract. This differs from the UAE, where only basic salary counts.
Are there exceptions to the resignation reduction?
Yes. Certain cases — such as leaving due to force majeure, or a female worker leaving within set periods after marriage or childbirth — can attract the full award. These are not modelled by the calculator.