Saudi Arabia Severance Pay Calculator 2025

Calculate end-of-service benefits and severance costs accurately according to Saudi Labor Law. Free calculator for HR professionals, hiring managers, and employees in Saudi Arabia.
Calculate KSA Severance Pay in Seconds
Our free Saudi Arabia severance calculator helps you accurately estimate end-of-service gratuity based on current Saudi employment regulations. Whether you're calculating for different contract types, get instant, compliant results.
100% compliant with Saudi Arabia Labor Law
Supports both limited and unlimited employment contracts
Handles resignation, termination, and mutual agreement scenarios
Instant, accurate severance pay calculations
Free to use for all HR professionals in KSA
Saudi Arabia Severance Pay Calculator Widget

Calculate KSA Severance Pay

Severance Calculation Result

SAR 0

Note: This calculation is based on Saudi Labor Law and provides an estimate. Consult with legal professionals for complex cases.

Why Choose Our Saudi Arabia Severance Pay Calculator
👑
Vision 2030 Compliance
Stay aligned with Saudi Arabia's labor reforms under Vision 2030 and ensure full compliance with modernized employment regulations.
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Saudization Planning
Make informed decisions about Nitaqat program compliance by understanding exact termination costs for workforce planning.
HRSD Integration Ready
Calculate severance amounts that align with HRSD requirements for seamless government reporting and compliance.
KSA Market Intelligence
Access insights tailored to the Saudi employment landscape and understand regional workforce costs.
🕌
Ramadan Considerations
Factor in Ramadan working hours and Islamic calendar considerations for accurate calculations.
🏗️
Industry-Specific Support
Perfect for construction, tech, and other key Saudi industries with specific employment requirements.
KSA End of Service Benefits: Complete Reference Guide 2025
Saudi Arabia Severance Pay Rates by Years of Service
Years of Service in KSA
Severance Pay Rate
Example (SAR 8,000 monthly salary)
First 1-5 years
Half month salary per year
SAR 4,000 per year of service
After 5 years (additional)
One month salary per year
SAR 8,000 per additional year
Limited vs Unlimited Contract Severance in KSA
KSA Unlimited Contract Severance
  • Employee Resignation: No severance pay entitlement
  • Employer Termination: Full severance after 1+ year
  • Calculation: Half month (first 5 years), full month thereafter
KSA Limited Contract Severance
  • Employee Resignation: No severance pay entitlement
  • Employer Termination: Full severance after 1+ year
  • Calculation: Full gratuity payment after 1+ years
How to Calculate KSA Severance Pay: 5-Step Guide
1
Check KSA Employment Contract Type
Determine if the employee has a limited-term or unlimited employment contract in Saudi Arabia, as this significantly affects severance pay eligibility and calculation.
2
Calculate Total Years of Service in KSA
Count complete years and months of continuous service from employment start date to termination date in Saudi Arabia.
3
Identify Employment Termination Reason
Determine the specific reason: employee resignation, employer termination without cause, mutual agreement, or contract completion
4
Apply KSA Severance Pay Formula
Use the Saudi compensation guidelines: half month's salary per year for first 5 years, then full month's salary for each additional year.
5
Calculate Final KSA Severance Amount
Sum up the calculated amounts to determine the total end-of-service gratuity. For more complex calculations, consider using our comprehensive KSA calculator.
Saudi Arabia Severance Pay FAQ: Most Asked Questions 2025
How is end of service gratuity calculated in Saudi Arabia?
KSA end of service gratuity is calculated using basic salary: half month's pay for each of the first 5 years of service, then one full month's pay for each additional year. The calculation method varies based on contract type (limited vs unlimited) and termination reason (resignation vs employer termination).
What is the difference between limited and unlimited contract severance in KSA?
For both limited and unlimited contracts in Saudi Arabia: employees typically do not get severance if they resign voluntarily. However, they receive full severance benefits if terminated by employer after 1+ year of service or upon completion of limited contract terms.
When do employees qualify for end of service benefits in KSA?
Employees in Saudi Arabia qualify for end of service benefits after completing minimum one year of continuous employment. The exact amount depends on employment contract type, total years of service, and specific reason for employment termination under Saudi Labor Law.
How much is severance pay for 5 years employment in KSA?
For 5 years of employment in Saudi Arabia, an employee receives half month's basic salary × 5 years = 2.5 months' salary if terminated by employer or upon completion of limited contract term.
What salary components are included in KSA severance calculation?
Saudi Arabia severance pay calculations are based exclusively on basic salary component only. Housing allowances, transportation allowances, bonuses, overtime payments, and other benefits are typically not included in end of service gratuity calculations under Saudi labor law.
Can KSA employers avoid paying severance to employees?
Saudi Arabia employers cannot legally avoid paying required severance except in cases of employee termination for serious misconduct or disciplinary reasons. All other employment terminations require proper end of service benefit payments according to Saudi Labor Law requirements.