End-of-Service Award
Written in plain language for general understanding. This is educational content, not legal advice. Based on Saudi royal decrees, regulations, and ministerial decisions.
Saudi National Law
What is this right?
When your employment ends, you are entitled to an end-of-service award (ESA) based on your length of service:
- First 5 years: Half a month's wage for each year of service.
- After 5 years: One full month's wage for each additional year.
- Calculation base: The award is based on your last basic wage plus housing and other regular allowances.
- Partial years: You get a proportional amount for any fraction of a year worked.
If you resign:
- Less than 2 years of service — no ESA.
- 2 to 5 years — you get one-third of the full award.
- 5 to 10 years — you get two-thirds of the full award.
- 10+ years — you get the full award.
When does it apply?
- Your employment ends for any reason — termination, resignation, contract expiry, or retirement.
- Both Saudi and expatriate employees are entitled to the ESA.
- The only exception is termination for serious misconduct under Article 80 of the Labour Law.
What should you do?
- Calculate your entitlement before your last day — use the MHRSD online ESA calculator.
- Request a written breakdown from your employer showing how they calculated your award.
- If your employer refuses to pay or underpays, file a claim with the Labour Courts within 12 months of your last working day.
What should you NOT do?
- Do not sign a final settlement until you have verified the ESA calculation is correct.
- Do not confuse basic wage with total compensation — make sure housing and regular allowances are included in the calculation.
- Do not let the 12-month claim deadline pass — Labour Court claims must be filed within one year.
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