Final Settlement Calculator Saudi Arabia
Use this Saudi Arabia final settlement calculator to estimate the amount payable when an employment relationship ends. It combines end-of-service benefits, unpaid salary, unused annual leave and other outstanding dues, less any deductions.
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Saudi Final Settlement Calculator
Enter the employee's final wage, service period and outstanding entitlements to calculate an estimated final settlement in Saudi Riyals.
Estimated Final Settlement
| End-of-Service Benefit | SAR 0.00 |
| Final Salary Due | SAR 0.00 |
| Unused Leave Pay | SAR 0.00 |
| Other Dues | SAR 0.00 |
| Deductions | - SAR 0.00 |
| Estimated Amount Payable | SAR 0.00 |
How Final Settlement Is Calculated in Saudi Arabia
A final settlement is broader than the end-of-service benefit alone. Depending on the employment circumstances, it may include the employee’s outstanding salary, unused annual leave, end-of-service award and other amounts already due under the employment contract or Saudi Labor Law.
Under Article 84 of the Saudi Labor Law, the standard end-of-service award is calculated at half a month’s wage for each of the first five years of service and one month’s wage for every year after that. Fractions of a year are calculated proportionately.
Final Settlement After Resignation
Where employment ends through resignation, Article 85 affects the end-of-service award. An employee with less than two years of continuous service is generally not entitled to the award. From two to five years, one-third is payable; after five but before ten years, two-thirds is payable; and from ten years onward, the full award is payable.
What Can Be Included in a Saudi Final Settlement?
- End-of-service benefit
- Outstanding salary for the final work period
- Payment for unused accrued annual leave
- Earned overtime, commissions or allowances where payable
- Other contractual entitlements
- Applicable deductions or amounts owed to the employer
Unused accrued annual leave is payable when an employee leaves employment. The exact settlement can still vary according to the employment contract, wage structure and reason the relationship ended.
When Should Final Settlement Be Paid in Saudi Arabia?
Article 88 requires the employer to settle wages and other entitlements within a maximum of one week where the employment relationship ends other than by the worker’s own termination. Where the worker ends the contract, the settlement period can extend to a maximum of two weeks.
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Frequently Asked Questions
Is final settlement the same as end-of-service benefit?
No. The end-of-service benefit is one component of the settlement. A final settlement may also include unpaid salary, unused leave, other outstanding earnings and applicable deductions.
Which salary is used for end-of-service calculation in Saudi Arabia?
The Saudi Labor Law uses the employee’s last wage as the basis for the end-of-service award. Certain variable commissions, sales percentages or similar wage elements may be excluded where this has been agreed in accordance with Article 86.
Does resignation reduce the final settlement?
Resignation may reduce the end-of-service award under Article 85, depending on the employee’s continuous service. Other amounts already due, such as unpaid salary or unused leave, are calculated separately.
Does this calculator include notice pay or unlawful termination compensation?
No. These amounts depend on the contract and the circumstances of termination. If an amount has already been confirmed as payable, it can be entered under “Other Dues.”