End of service benefits Saudi labor law rules: what you are owed, and how to claim it if your employer does not pay
Under the end of service benefits Saudi labor law rules (Articles 84 and 85 of the Saudi Labor Law), your employer pays half a month’s last wage for each of your first five years and one month’s wage for each year after that. A resignation can reduce this. The employer must settle everything within one week of the end of the contract, or two weeks if you ended it (Article 88). If it does not, file a free claim through HRSD’s Friendly Settlement service, which moves to the labor court if no settlement is reached, within 12 months of the end of employment (Article 234).
This guide covers the rules in brief and then explains how to claim unpaid end of service benefits in Saudi Arabia, step by step.
You can book a consultation on WhatsApp with the team at Al-Safwa Law Firm for Advocacy and Legal Consultations to review your documents and explain your legal options clearly.
Table of Contents
Key Deadlines at a Glance
Information verified in November 2026 against the Labor Law text published by HRSD and the Ministry of Justice guide to labor cases. Please check the official sources below, as rules can change. Time limits matter as much as the amount when you claim the end of service benefits in the Saudi Labor Law.
| Item | What the rules say |
|---|---|
| Deadline for the employer to pay | One week from the end of the contract; two weeks if the worker ended it (Article 88) |
| Deadline to file a claim | 12 months from the end of the employment relationship, unless the court accepts an excuse or the employer admits the right (Article 234) |
| First friendly settlement session | Within 10 working days of registering the claim (Article 13 of the friendly settlement rules) |
| Length of friendly settlement | 21 working days, then referral to the labor court if no settlement (Article 14) |
| Government fee for friendly settlement | None. HRSD lists the service as free |
The End of Service Benefits Saudi Labor Law Rules in Brief
Before you file anything, know the amount you are claiming. The award depends on how the contract ended and how long you served. It is calculated on your last wage, which the law defines as the actual wage: basic pay plus regular allowances and increments set by the contract or work rules (Article 2). Under Article 86, the parties may agree in writing to leave commissions and similar variable pay out of the base.
| How the contract ended | What the worker receives |
|---|---|
| Termination by the employer, or a fixed-term contract that expired | Half a month’s wage per year for the first 5 years, then one month per year, plus pro rata for part-years (Article 84) |
| Resignation after less than 2 years | No award (Article 85) |
| Resignation after 2 to 5 years (5 years included) | One third of the award (Article 85) |
| Resignation after more than 5 and less than 10 years | Two thirds of the award (Article 85) |
| Resignation after 10 years or more | Full award (Article 85) |
| Leaving due to force majeure, or a female worker ending the contract within 6 months of marriage or 3 months of giving birth | Full award, whatever the length of service (Article 87) |
A quick example
A worker with a last actual wage of SAR 10,000 per month and 8 years of service:
| Situation | Award |
|---|---|
| Employer ended the contract | (5 × 5,000) + (3 × 10,000) = SAR 55,000 |
| Worker resigned after 8 years | Two thirds of 55,000 = about SAR 36,667 |
| Worker resigned after 3 years (same wage) | One third of 15,000 = SAR 5,000 |
| Worker resigned before completing 2 years | No award |
For your own figures, including days and months, use our end of service calculator, which also has more worked examples.
When Can You File an End of Service Complaint?
Your right to complain starts once the Article 88 deadline has passed without payment: one week after the contractual relationship ends, or two weeks if you were the one who ended the contract. The same article lets the employer deduct any work-related debt you owe from your entitlements. Unpaid wages during employment can be claimed as soon as they are late. You do not need to wait for the contract to end.
If you resigned, the end date matters. Under Article 79 bis, the contract ends when the employer accepts the resignation, or after 30 days with no reply. If the employer postponed acceptance before those 30 days ran out, with a written, reasoned explanation, the contract ends when that postponement ends. The postponement cannot exceed 60 days from the date you received the explanation. The Article 88 payment deadline and the 12-month claim period both run from this end date.
What your claim usually includes
An end of service claim is often wider than the award itself. List each item with a figure:
- End of service award under Article 84, or the reduced share under Article 85 if you resigned.
- Unpaid wages for your last period of work.
- Pay for unused annual leave, including leave for part of the final year in proportion to the time worked (Article 111).
- Notice compensation if an indefinite contract was ended without the required notice. For monthly-paid workers, the employer must give 60 days’ written notice (Article 75), and failing to do so means paying the wage for the notice period (Article 76).
- Compensation for termination without a valid reason: 15 days’ wage per year of service in an indefinite contract, or the wage for the remaining term of a fixed-term contract, and never less than two months’ wage, unless the contract sets other compensation. See our guide to Article 77 of the Saudi Labor Law.
How to Claim Unpaid End of Service Benefits, Step by Step
Claims for end of service benefits KSA employers have not paid go through the Friendly Settlement for Labor Disputes service first (often called Wedy). The Ministry of Justice guide explains that this stage is mandatory: the labor court will not hear the dispute before it. Following the HRSD service page, the steps are:
- Log in to the HRSD e-services portal through the National Single Sign-On (the individuals portal if you are an employee).
- Choose “Friendly Settlement – File a Lawsuit”. A claim for the award is a dispute over a financial right, so it belongs here, not in a violation report.
- Complete the claim form: your details, the settlement office for your place of work, the employer’s details and your work details. HRSD matches the office to the location of the workplace.
- State your claims in figures: the award, unpaid wages and leave pay, with your start date, end date and last wage.
- Attach your documents (see the next section), accept the declaration that the claim is not vexatious, and submit.
- Watch for notifications. Specialists review the request. If it is rejected, the reasons appear in the claims service. If it is accepted, all parties receive SMS and email notices with the session date.
- Attend the sessions. The first session must be held within 10 working days of registration, and the settlement period is 21 working days. If you miss a session, the claim is archived, and you can reopen it as long as 21 working days have not passed.
- Settlement or referral. If you agree, a settlement record is issued and can be printed from the claims service. If not, a record of failed settlement is issued and the case moves to the competent labor court under Ministry of Justice procedures, which you follow on Najiz.
The service is offered in Arabic, English and Urdu. If someone files for you, they need a power of attorney that authorizes them to appear before the friendly settlement department, with the right to settle, release and waive.
What if the employer does not attend?
The Ministry of Justice labor guide answers two common questions. If an employer misses the first settlement session, the settlement department may suspend the employer’s services with the Ministry. An expat worker whose employer did not attend the first and second sessions may apply to transfer their services to another employer without the current employer’s consent (Article 17(1) of the friendly settlement rules, read with Article 15 of the Labor Law Implementing Regulations).
Documents That Support Your Claim
- The employment contract, or any document proving the employment relationship and its start date.
- Proof that the relationship ended and when: the termination letter, the resignation acceptance, or proof that a fixed-term contract expired.
- A bank statement showing your last salary deposits and their dates. It proves the last wage used to calculate the award.
- Payslips or wage records showing the allowances included in your actual wage.
- Any messages with the employer about your entitlements or promises to pay.
Keep copies outside your work email and company phone. Access to both often ends on your last day. The stronger your documents, the easier it is to prove the end of service benefits in the Saudi Labor Law that apply to you.
The 12-Month Deadline Under Article 234
Article 234 of the Labor Law says that labor courts will not accept any claim for a right under the law or the employment contract once twelve months have passed since the employment relationship ended. There are two exceptions: the claimant gives an excuse the court accepts, or the employer admits the right. Some unofficial summaries online give a shorter or different period, so rely on the official text. Do not let verbal promises to pay run down the clock.
Common Employer Defences and How Claims Are Answered
Most disputes in friendly settlement or court come back to a small number of arguments. Knowing them in advance helps you prepare the right evidence. Whatever defence is raised, your claim is measured against the rules on end of service benefits in the Saudi Labor Law.
| Employer argument | Legal basis | What to check |
|---|---|---|
| “The claim is out of time.” | Article 234 | The exact end date (including under Article 79 bis), any accepted excuse, and any written admission of the debt |
| “You were dismissed under Article 80, so no award is due.” | Article 80 | Whether the facts fit one of the listed cases, and whether you were given a chance to state your objection before termination |
| “You resigned before two years.” | Articles 85 and 87 | Whether an Article 87 case applies, or whether you actually left because of the employer’s breach. See Article 81 of the Saudi Labor Law |
| “The award is based on basic salary only.” | Articles 2, 84 and 86 | Your payslips and contract: regular allowances form part of the actual wage, unless a written agreement under Article 86 excludes commissions or similar pay |
| “We deducted a debt you owe.” | Article 88 | Whether the debt is work-related, proven and correctly calculated |
| “You signed a release.” | Article 8 | The date and wording. A release of rights under the law signed while the contract was still in force is void, unless it is more favorable to the worker |
End of Service Benefits Saudi Expats Ask About
- Same rules regardless of nationality. Articles 84 to 88 apply to workers under the Labor Law without separate rates for Saudis and expats.
- The award is not GOSI. Article 84 places the payment on the employer, so social insurance contributions do not replace it.
- Language. The friendly settlement service is available in English and Urdu as well as Arabic.
- Representation. A representative holding a suitable power of attorney can follow the claim for you.
- Domestic workers fall under a separate regulation. The calculator guide explains their entitlement.
When a Lawyer Helps
Many award claims end in friendly settlement. Legal help is most useful when the employer disputes your last wage or service dates, labels the exit as an Article 80 dismissal, or when the 12-month deadline is close. At the court stage, a clear statement of claim with figured requests matters, and our team offers statement of claim drafting. You can also have your file reviewed by a labor case lawyer or a labor office lawyer at Al Safwa. A lawyer can check your calculation of end of service benefits in the Saudi Labor Law and the deadline that applies to you.
Frequently Asked Questions about End of Service Benefits
In short, end of service benefits Saudi labor law rules give you a defined award, a one- or two-week payment deadline and a 12-month window to claim. If the deadline passes, work out your figures, gather your contract, end-of-employment proof and salary records, and file the free friendly settlement claim without delay.
To get a legal consultation from our team, contact us via the WhatsApp button at the bottom of the screen.
Sources:
- Labor Law, Labor Relations (Articles 50–88), HRSD: Articles 75, 76, 77, 79 bis, 80, 84, 85, 86, 87 and 88. Verified November 2026.
- Labor Law, Working Conditions (Articles 89–118), HRSD: Article 111. Verified November 2026.
- Labor Law, Penalties and Final Provisions, HRSD: Article 234. Verified November 2026.
- Labor Law, Definitions and General Provisions, HRSD: Articles 2 and 8. Verified November 2026.
- Friendly Settlement for Labor Disputes service, HRSD. Verified November 2026.
- 50 questions on the labor judiciary, Ministry of Justice (PDF, Arabic): Articles 13, 14 and 17 of the friendly settlement rules. Verified November 2026.
- Consolidated Labor Law, HRSD (PDF, Arabic, May 2025).
A legal advisor holding a Bachelor’s degree in Law from the prestigious Cairo University. He possesses extensive experience spanning over 25 years in criminal, civil, and family law, during which he has achieved notable accomplishments that have solidified his reputation as a valuable asset to any legal team
