Career advice · Updated November 2026

Saudi End of Service Award for Kenyan Workers: How It Is Calculated

If you are a Kenyan working in Saudi Arabia under the Saudi Labor Law, your Saudi end of service award is the lump sum your employer must pay when the contract ends. The Ministry of Human Resources and Social Development (HRSD) says the award is half a month’s wage for each of the first five years and one month’s wage for each later year, based on your last wage. Part-years count pro rata. If you resign, you may get only part of the award, or none, depending on how long you worked. This guide explains the rules, gives worked examples and lists what to check before you fly home.

Checked on 8 November 2026 against HRSD’s guidance page End-of-Service Award Regulations, which summarises Articles 84 and 85 of the Saudi Labor Law (Royal Decree M/51). Domestic workers hired through Musaned are covered by separate domestic worker regulations, so check your contract if you work in a home.

How the Saudi end of service award is calculated

HRSD sets out three rules:

• First five years: half a month’s wage for each year.
• Each year after five: one full month’s wage for each year.
• Part of a year: paid in proportion to the time you worked.

The award is calculated on your last wage. This is an important difference from the UAE. Under Saudi rules, “wage” means the basic wage plus other due increases paid for your effort, risks or under your contract or work regulations, such as regular allowances. HRSD adds that the employer and worker may agree to leave out commissions, percentages and similar pay that naturally goes up and down. Read your contract to see which allowances count.

Worked examples

These examples use a last wage of SAR 3,000 a month. Convert to Kenya shillings at the rate on the day you are paid.

• 3 years, contract ends or employer terminates: 3 x half a month = 1.5 months, or SAR 4,500.
• 7 years, contract ends: 5 x half a month (2.5 months) + 2 x one month (2 months) = 4.5 months, or SAR 13,500.
• 2 years 6 months, contract ends: 2.5 x half a month = 1.25 months, or SAR 3,750.

Your employer may deduct amounts you lawfully owe, such as an advance, so ask for a written breakdown.

If you resign: reduced Saudi end of service award

When the job ends because you resign, HRSD says the award is reduced according to your length of service:

• Less than 2 years: no award.
• 2 to 5 years: one third of the award.
• More than 5 but less than 10 years: two thirds of the award.
• 10 years or more: the full award.

Using the 7-year example above, a resignation would earn two thirds of SAR 13,500, or SAR 9,000. Some resignations still earn the full award. HRSD says a woman who leaves within six months of marriage or three months of giving birth is entitled to the full award. So is a worker who leaves because of force majeure.

Fixed-term and open-ended contracts

HRSD says the award is an entitlement the employer must pay at the end of the contract, whether the contract is fixed-term or open-ended. Contract renewals usually count as continuous service, so keep every contract and renewal letter. Gaps between contracts, a transfer to a new sponsor, or a change of employer can reset your service count. Ask HR to confirm your official start date in writing.

Before you leave Saudi Arabia

1. Get your final settlement in writing. It should show your last wage, the service period, the award and any deductions.
2. Check your salary history. Saudi employers pay wages through the Wage Protection System, so your bank statements show what you were paid. Match them against the wage used in the calculation.
3. Collect your documents. These include your contract, renewals, final payslip, exit or final exit visa paperwork and an experience or service certificate.
4. Do not sign a release until you are paid, or until the release states the exact amount you received.
5. Raise disputes early. HRSD runs digital complaint channels and labour offices. File before you leave the country if you can.

Help from Kenya

If you were recruited through an agency in Kenya, keep its name and National Employment Authority (NEA) registration details. Our guide to recruitment agencies versus direct hiring explains what licensed agencies must do. Before you take another Gulf job, learn how to spot fake job adverts. If you come home and start work in Kenya, the rules are different. Kenyan service pay and gratuity are covered in our guide to service pay and gratuity in Kenya.

Who pays and when

The employer pays the award. It is not taken from your salary during the contract and you should not be asked to contribute to it. The award is part of your final settlement, along with any unpaid salary and payment for leave days you did not take. HRSD treats it as a right that arises when the employment relationship ends, so the time to check the figures is before your final exit. If your employer says it cannot pay or delays, keep copies of all messages and contact the labour office. Do not rely on verbal promises to send the money later to Kenya.

Plan your next move

Many Kenyans finish one Saudi contract and look at other Gulf countries. Rules differ by country, so do not assume the Saudi formula applies elsewhere. Our Gulf jobs guide for Kenyans explains the main destinations, how to confirm a real offer and which documents to prepare. Budget your award carefully. It may be the only lump sum you receive from years abroad.

Common mistakes

• Assuming you get the award after resigning in the first two years. You do not.
• Using basic pay only. Saudi rules generally include regular allowances in “wage”, unless your contract validly excludes variable items.
• Forgetting part-years, which are paid pro rata.
• Leaving the country with no written settlement and no way to prove what you are owed.

Frequently asked questions

How is the Saudi end of service award calculated?

Half a month's wage for each of the first five years and one month's wage for each later year, on your last wage, with part-years paid pro rata.

Do I get the award if I resign in Saudi Arabia?

Not if you worked under two years. From 2 to 5 years you get one third, from over 5 to under 10 years two thirds, and from 10 years the full award.

Does the wage include allowances?

HRSD defines wage as basic pay plus other due increases, although the employer and worker may agree to exclude variable items such as commissions.

Are domestic workers covered by these rules?

Domestic workers are covered by separate domestic worker regulations, so check your Musaned contract.