End-of-service award calculation under Articles 84–85 of the Labor Law — half a month's wage for each of the first 5 years plus one month's wage for each year after that, based on the employee's LAST wage; resignation follows a sliding scale, and the award is paid in full in certain special cases under Article 87.
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END-OF-SERVICE BENEFIT (EOSB / MUKĀFAʾAT NIHĀYAT AL-KHIDMA) CALCULATION SHEET
Employee: Employee name Start date: Start date End date: End date Years of service: Years of service
This sheet applies Articles 84–85 of the Saudi Labor Law (Royal Decree No. M/51 of 2005): an employee is entitled to half a month's wage for each of the first 5 years of service, and a full month's wage for each year of service beyond that, pro-rated for a partial year. The base for the calculation is the employee's LAST wage, not an average.
1. INPUTS 1.1. Last monthly salary (base for calculation): Last monthly salary. 1.2. Basis of separation: Basis of separation.
2. RESIGNATION SCALE (if applicable) 2.1. On resignation, the award is reduced on a sliding scale: less than 2 years of service — 0; 2 to 5 years — one third; 5 to 10 years — two thirds; 10 years or more — the full award. Applicable coefficient: Resignation coefficient. 2.2. A woman who resigns within 6 months of her marriage, or within 3 months of giving birth, is entitled to the FULL award regardless of length of service (Article 87), as is an employee who resigns for a reason attributable to the Employer under Article 81.
3. AMOUNT 3.1. Amount for the first 5 years (½ month's wage × years, capped at 5): Amount for the first 5 years. 3.2. Amount for years beyond 5 (1 month's wage × years): Amount for years beyond 5. 3.3. Gross end-of-service award (before any resignation reduction): Gross end-of-service award.
4. UNUSED LEAVE 4.1. Unused annual leave: Unused annual leave (days) days, payout Unused leave payout.
5. NET PAYABLE 5.1. Net end-of-service award and unused-leave payout: Net payable.
Prepared by ______________ Date ______________
— — — ⚠️ This is a boilerplate template, not legal advice. It is written under the Saudi Labor Law (Royal Decree No. M/51 of 2005, as amended by Royal Decree No. M/44 of 23 August 2024, in force from 19 February 2025) and related regulations and digital platforms (Qiwa, Najiz, GOSI, Mudad, PDPL/SDAIA, E-Commerce Law, SFDA, Shomoos, ZATCA/Fatoora, Balady) as in effect in July 2026 — these platforms and their implementing regulations change frequently; verify against the current text before use. Have this template reviewed by a Saudi-qualified lawyer and, for HR documents, checked against your own HRSD-approved work organization regulation (لائحة تنظيم العمل) before use.
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Base for the calculation is the LAST wage, not an average
Applies only when separationBasis is Resignation
½ month's wage × years, capped at 5
1 month's wage × years beyond year 5
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