How to Calculate Saudi Notice Pay
When Saudi notice is not served, one side pays the other for the missing days. Here is the exact calculation, with numbers.
→ Open the Saudi Notice Period Calculator
The notice period itself is fixed by law (30 or 60 days). Money only changes hands when notice is not fully served. Here is how to size that payment.
Step 1 — Identify the applicable notice days
- You resign: 30 days (any pay frequency).
- Employer ends a monthly-paid contract: 60 days.
- Employer ends a non-monthly-paid contract: 30 days.
Step 2 — Work out the daily wage
Use the Article 2 wage — basic plus regular cash allowances — over a 30-day month:
Daily wage = Monthly wage ÷ 30
Step 3 — Multiply by the unserved days
Notice pay = Daily wage × unserved notice days
Worked example
The employer terminates a monthly-paid worker on SAR 15,000 and releases them immediately (60-day notice, none served).
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 15,000 ÷ 30 | SAR 500 |
| Unserved days | 60 − 0 | 60 days |
| Notice pay owed to worker | 500 × 60 | SAR 30,000 |
Common scenarios
| Who ends it | Notice days | Served | Paid days | At SAR 500/day |
|---|---|---|---|---|
| Employee resigns | 30 | 0 | 30 | SAR 15,000 |
| Employer (monthly-paid) | 60 | 30 | 30 | SAR 15,000 |
| Employer (other pay) | 30 | 0 | 30 | SAR 15,000 |
Direction depends on who broke the notice: resign without notice and you may owe the company; be terminated without notice and they owe you. Total notice pay with your end-of-service award for the full exit picture.
A resignation example
Take an employee on SAR 9,000 who resigns and, with the employer's agreement, leaves after serving 10 of the required 30 days. The daily wage is 9,000 ÷ 30 = SAR 300, and the 20 unserved days are valued at 300 × 20 = SAR 6,000, which the employee could owe the company. In many amicable exits the employer simply waives this. The reverse also holds: if a monthly-paid worker is dismissed without notice, the employer owes 60 days — 300 × 60 = SAR 18,000 — a far larger figure, which is why employers usually let staff serve the notice or plan the release carefully.
Key takeaways
- Confirm the notice: 30 days (resign / other pay) or 60 days (employer, monthly-paid).
- Daily wage = monthly wage ÷ 30, using the Article 2 wage basis.
- Notice pay = daily wage × unserved days.
- Only the unserved balance is paid, not the whole notice period.
- The payment flows from whoever broke the notice.
Frequently asked questions
How is Saudi pay in lieu of notice calculated?
Divide the monthly wage (basic plus regular allowances) by 30, then multiply by the number of unserved notice days — 30 or 60 depending on who ends the contract.
Is the employer notice always 60 days?
Only for monthly-paid workers. For other pay frequencies the employer's notice is 30 days. An employee resigning always owes 30 days.
What if I serve part of my notice?
Only the unserved balance is paid. Serve 20 of 30 days and just the remaining 10 days are due.
Which wage basis applies?
Article 2 of the Labor Law: basic wage plus regular cash allowances.
Does notice pay apply to fixed-term contracts?
The 30/60-day notice framework is for indefinite-term contracts. Fixed-term contracts end on their expiry date and follow different early-termination rules.
Is the employer's 60-day notice only for monthly-paid staff?
Yes. An employer ending a monthly-paid contract owes 60 days; for other pay frequencies it is 30 days. An employee resigning always owes 30 days.
Can notice be waived by agreement?
Yes. Either side can release the other early, and in amicable exits the unserved-notice payment is often simply waived.
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.