How the award is calculated
Article 84 of the Saudi Labor Law gives a worker half a month's wage for each of the first five years of service and a full month's wage for each year after that. Part of a year counts in proportion, so 3 years and 6 months counts as 3.5 years. The award is based on the last wage. For example, a worker on SAR 8,000 a month with 7 years of service gets 5 × 0.5 × 8,000 = SAR 20,000 for the first five years and 2 × 8,000 = SAR 16,000 for the next two, a full award of SAR 36,000.
If you resign
Article 85 reduces the award when the worker resigns. Under 2 years of service there is no award. From 2 to 5 years the worker gets one third, from more than 5 to under 10 years two thirds, and from 10 years the full award. In the example above, resigning after 7 years would give two thirds of SAR 36,000, which is SAR 24,000.
When you keep the full award
You receive the full award, whatever your length of service, when the employer ends the contract or a fixed-term contract expires. Under Article 87 the full award is also due when a worker leaves because of force majeure, or when a woman ends her contract within six months of marriage or within three months of giving birth. Article 81 lets a worker leave without notice and keep all rights when the employer breaks the contract, for example by not paying wages or by assault. Under Article 80, a worker dismissed for serious misconduct listed in that article gets no award.
Which wage to use
The Labor Law calculates the award on the actual wage, which includes the basic wage and the allowances paid with it, such as housing and transport. Commissions and variable pay can also count, depending on your contract. Use the figure from your last payslip. This calculator counts a year as 365 days; if your contract uses the Hijri calendar, the result can differ slightly.
When it must be paid
Article 88 requires the employer to pay the award and all other dues within one week when the employer ends the contract, and within two weeks when the worker ends it. You can check your official figure on Qiwa and raise a complaint with the Ministry of Human Resources and Social Development (HRSD) if it is not paid.