How Much End of Service Do You Lose If You Resign Before 10 Years?
Article 85 makes the timing of a resignation a financial decision. These tables compare the full award with the resignation award for each year of service and show when a single month changes the amount by thousands of riyals.
The short version in four numbers (wage SAR 10,000)
- At 4 years you lose two thirds: the full award is SAR 20,000 and the resignation award SAR 6,667.
- From 5 years to 5 years and a month: the resignation award rises from SAR 8,333 to 17,222 — more than double for one month's work.
- At 9 years you lose a third: SAR 43,333 instead of 65,000.
- From 9 years 11 months to 10 years: it rises from SAR 49,444 to 75,000.
The tipping points
| Step | Before | After | Increase |
|---|---|---|---|
| 1 year 11 months → 2 years | 0 | 3,333 | +3,333 |
| 5 years → 5 years 1 month | 8,333 | 17,222 | +8,889 |
| 9 years 11 months → 10 years | 49,444 | 75,000 | +25,556 |
The full table for three wages
| Service | Full award | Resignation share | Resignation award | Difference |
|---|---|---|---|---|
| 1 year | 3,000 | None | 0 | 3,000 |
| 2 years | 6,000 | One third | 2,000 | 4,000 |
| 3 years | 9,000 | One third | 3,000 | 6,000 |
| 4 years | 12,000 | One third | 4,000 | 8,000 |
| 5 years | 15,000 | One third | 5,000 | 10,000 |
| 6 years | 21,000 | Two thirds | 14,000 | 7,000 |
| 7 years | 27,000 | Two thirds | 18,000 | 9,000 |
| 8 years | 33,000 | Two thirds | 22,000 | 11,000 |
| 9 years | 39,000 | Two thirds | 26,000 | 13,000 |
| 10 years | 45,000 | Full | 45,000 | 0 |
| Service | Full award | Resignation share | Resignation award | Difference |
|---|---|---|---|---|
| 1 year | 5,000 | None | 0 | 5,000 |
| 2 years | 10,000 | One third | 3,333 | 6,667 |
| 3 years | 15,000 | One third | 5,000 | 10,000 |
| 4 years | 20,000 | One third | 6,667 | 13,333 |
| 5 years | 25,000 | One third | 8,333 | 16,667 |
| 6 years | 35,000 | Two thirds | 23,333 | 11,667 |
| 7 years | 45,000 | Two thirds | 30,000 | 15,000 |
| 8 years | 55,000 | Two thirds | 36,667 | 18,333 |
| 9 years | 65,000 | Two thirds | 43,333 | 21,667 |
| 10 years | 75,000 | Full | 75,000 | 0 |
| Service | Full award | Resignation share | Resignation award | Difference |
|---|---|---|---|---|
| 1 year | 7,500 | None | 0 | 7,500 |
| 2 years | 15,000 | One third | 5,000 | 10,000 |
| 3 years | 22,500 | One third | 7,500 | 15,000 |
| 4 years | 30,000 | One third | 10,000 | 20,000 |
| 5 years | 37,500 | One third | 12,500 | 25,000 |
| 6 years | 52,500 | Two thirds | 35,000 | 17,500 |
| 7 years | 67,500 | Two thirds | 45,000 | 22,500 |
| 8 years | 82,500 | Two thirds | 55,000 | 27,500 |
| 9 years | 97,500 | Two thirds | 65,000 | 32,500 |
| 10 years | 112,500 | Full | 112,500 | 0 |
“Difference” is what a resigning employee loses compared with the contract ending or the employer terminating it. Figures are rounded to the nearest riyal and assume whole years and a constant wage.
Method
The full award follows Article 84: half a month's wage for each of the first five years and a month's wage for each year after, on the last actual wage. The resignation award follows Article 85: nothing before two years, one third up to five years, two thirds above five and below ten, and the full award from ten years. The tables are generated from the same formula as the Saudi end-of-service calculator, so they update with it.
Before you hand in your resignation
- Calculate your award in days with the resignation calculator, because the thresholds are measured by actual service, not calendar years.
- Check whether your case is one of the Article 87 exceptions or an Article 81 case that keeps your full award.
- Don't forget payment for unused annual leave, which is due in every case.
Prefer Arabic? Use the Arabic version.
Frequently asked questions
What is the worst time to resign for end-of-service purposes?
Before completing two years (no award), exactly at five years (only one third, while one more month raises it to two thirds), and a few months before ten years (two thirds, while it becomes full after ten).
Do these figures include the Article 87 exceptions?
No. The tables cover ordinary resignation. In Article 87 cases — force majeure, or a female employee resigning within six months of marriage or three months of giving birth — the award is paid in full, as in the full award column.
Can I use these figures in a dispute with my employer?
They are a guide calculated from Articles 84 and 85, and do not replace an exact calculation in days or a review by the competent authority in a dispute.
Does resigning from an open-ended contract still reduce the award?
This is unsettled since the 2025 amendments, which define resignation as ending a fixed-term contract. Some specialists consider that ending an open-ended contract with Article 75 notice earns the full award; the tables show the cautious Article 85 figures.
Sources
- Saudi Labour Law — Articles 84 and 85 (HRDF, English)
- Ministry of Human Resources — official end-of-service calculator
Figures and formulas on this page were last reviewed on 2026-11-03.