How to Calculate Saudi End-of-Service Pay
Work out your Saudi ESB by hand in four steps, including how the resignation tiers cut the figure — with a full worked example.
→ Open the Saudi End-of-Service Calculator
The Saudi ESB looks more complicated than the UAE gratuity because of the resignation tiers, but the underlying maths is straightforward. Here is the method.
Step 1 — Use your last wage
Take your last wage — basic salary plus regular allowances. This is broader than basic-only. The daily figure is this wage divided by 30.
Step 2 — Apply the month-per-year bands
First five years accrue half a month per year; every year beyond five accrues one full month.
Months earned = (first 5 yrs × 0.5) + (extra yrs × 1)
Base award = Months earned × last monthly wage
Step 3 — Apply the resignation reduction (if you resigned)
| If you resigned with… | Multiply the base award by |
|---|---|
| Under 2 years | 0 (nothing due) |
| 2 to 5 years | ⅓ |
| 5 to 10 years | ⅔ |
| 10+ years | 1 (full) |
If your employer terminated the contract, there is no reduction — you get the full base award at any tenure.
Worked example (terminated)
Last wage SAR 10,000, 8 years, employer-terminated.
| Step | Calculation | Result |
|---|---|---|
| First 5 years | 5 × 0.5 month | 2.5 months |
| Years 6–8 | 3 × 1 month | 3 months |
| Total months | 2.5 + 3 | 5.5 months |
| Award | 5.5 × 10,000 | SAR 55,000 |
Same example, but resigned
At eight years you fall in the 5–10 band, so you receive two thirds: 55,000 × ⅔ = SAR 36,667. Cross the ten-year mark and the same base award pays in full.
Ready-reckoner (last wage SAR 10,000, terminated)
| Years | Months earned | Award (SAR) |
|---|---|---|
| 2 | 1.0 | 10,000 |
| 5 | 2.5 | 25,000 |
| 8 | 5.5 | 55,000 |
| 10 | 7.5 | 75,000 |
| 15 | 12.5 | 125,000 |
Scale for any wage — at SAR 5,000 last wage, halve every figure. Enter your exact numbers in the Saudi end-of-service calculator and pick "Resigned" to apply the tiers automatically.
Where employees most often slip
Two mistakes dominate. The first is using basic salary instead of the last wage including regular allowances — that understates the base award for almost everyone. The second is forgetting to check which side of a tier boundary you fall on. The resignation multiplier jumps at exactly 2, 5 and 10 years, so being a few weeks short of ten years can mean receiving two thirds instead of the full award on the same base. If you are close to a boundary and resigning, the timing of your last working day can be worth thousands of riyals — model both dates in the calculator before you commit.
Key takeaways
- Use last wage (basic + regular allowances) ÷ 30 for the daily figure.
- 0.5 month per year for the first 5 years, 1 month per year after.
- Apply the resignation multiplier: ⅓, ⅔ or full, by tenure band.
- Employer termination = full base award at any tenure.
- Tier boundaries at 2, 5 and 10 years can move your figure sharply.
Frequently asked questions
What wage is used for the Saudi ESB calculation?
Your last wage, meaning basic salary plus regular allowances, divided by 30 for a daily figure.
How many months of ESB do I earn per year?
Half a month per year for the first five years, then one full month per year beyond five.
How does resignation change the amount?
Resigning pays one third of the award at 2–5 years, two thirds at 5–10 years, the full amount at 10+ years, and nothing under 2 years.
Do I get the full award if my employer terminates me?
Yes. Employer termination pays the full base award at any length of service.
Related calculators & guides
More Saudi Arabia employment calculators
Calcnate keeps a full set of Saudi Labor Law tools — all updated for the 2025 amendments — so you can check every part of an exit or contract in one place:
- Saudi End-of-Service Calculator — the half-month/full-month award with resignation tiers.
- Saudi Notice Period Calculator — the 30/60-day rule and pay in lieu.
- Saudi Probation Period Calculator — the 180-day contract rules.
- Saudi Maternity Leave Calculator — 12 weeks at full pay.
- Saudi Leave Encashment Calculator — cash value of unused annual leave.
Browse everything on the Saudi Arabia hub.