Saudi Labor Law Guide: How Construction Workers Can Check Their End-of-Service Benefits

Saudi end of service benefits are an important part of the final settlement for construction workers in Saudi Arabia. This guide explains how to calculate your gratuity, check your details on Qiwa, understand payment deadlines, and claim unpaid benefits.

Construction workers make up one of the largest groups of expatriate employees in Saudi Arabia. Many of them spend years on building sites, road projects, and mega-developments, then leave the job without knowing exactly how much money they are owed. The most important payment at the end of any job in the Kingdom is the end-of-service benefit (EOSB), also called the end-of-service award or gratuity.

This guide explains, in plain language, what the Saudi Labor Law says about end-of-service benefits, how to calculate your amount step by step, how to check it on the official Qiwa platform, and what to do if your employer refuses to pay. It is written for construction workers, site supervisors, drivers, masons, electricians, plumbers, steel fixers, and anyone else employed by a private contracting company in Saudi Arabia.

What Are Saudi End of Service Benefits?

Saudi end of service benefits are a lump-sum payment that your employer must give you when your employment ends. It is a legal right, not a favour or a bonus. It is supervised by the Ministry of Human Resources and Social Development (HRSD) and set out in Articles 84 to 88 of the Saudi Labor Law (Royal Decree M/51).

Key Points Every Worker Should Know

• It applies to everyone in the private sector, Saudi and non-Saudi alike. Your nationality does not change your entitlement.
• It is based on your last wage, not your first wage or your average wage.
• It grows with every year you work. Even part of a year counts.
• It is separate from other final dues such as unpaid salary, unused annual leave, and your ticket home.

Did the 2025 Labor Law Amendments Change Saudi End of Service Benefits?

The Saudi Labor Law was amended by Royal Decree M/44, and the changes came into force on 19 February 2025. The amendments introduced a formal resignation process, extended the maximum probation period to 180 days, and changed several other rules. However, the core end-of-service formula in Articles 84 to 88 was not changed. The calculation explained below is still correct in 2026.

How to Calculate Saudi End of Service Benefits Step by Step

Step 1: Work Out Your “Last Wage” Correctly

This is where most construction workers lose money. Many employers calculate the end-of-service benefit on the basic salary only. That is wrong.

Under the Labor Law’s definition of wage (Article 2, as amended), the “wage” used for end-of-service is the actual wage. It includes:

• Basic salary
• Housing allowance
• Transport allowance
• Food allowance
• Cost-of-living increases
• Regular commissions or contractual/customary bonuses
• Benefits in kind – for example, free accommodation in a labour camp or free meals, where these are part of your package

Example of a Typical Construction Worker’s Wage

If your company calculates your gratuity on SAR 2,000 instead of SAR 2,800, you could lose thousands of riyals in Saudi end of service benefits over a long career. Always ask what figure was used.

Note: The law allows certain variable items, such as commissions or sales percentages, to be excluded if your contract clearly says so. Read your contract on Qiwa to confirm what is included.

Step 2: Calculate Your Length of Service

Count your service from your first working day to your last working day with the same employer. Remember:

• Part of a year counts in proportion. Six months is half a year; three months is a quarter.
• Unpaid leave is usually not counted as service.
• If your contract ended during the probation period, no end-of-service award is due at all.
• If you were transferred to a new sponsor, your service with the old employer generally ends at the transfer date, and the old employer is responsible for that period.

Step 3: Apply the Article 84 Formula

Article 84 sets the full award:

• First 5 years: half a month’s wage for each year
• Every year after 5: one full month’s wage for each year

In simple terms:

Full EOSB = (Years 1–5 × ½ monthly wage) + (Years 6 onwards × 1 monthly wage)

Worked Example 1 – Contract Ended by the Employer

Ahmed is a steel fixer with an actual wage of SAR 2,800. He worked for 8 years, and the company ended his contract when the project finished.

• First 5 years: 5 × 1,400 = SAR 7,000
• Next 3 years: 3 × 2,800 = SAR 8,400
• Total EOSB: SAR 15,400

Worked Example 2 – Part-Year Service

Rahim is a site electrician earning SAR 2,800 who worked 6 years and 6 months before his contract expired.

• First 5 years: 5 × 1,400 = SAR 7,000
• Remaining 1.5 years: 1.5 × 2,800 = SAR 4,200
• Total EOSB: SAR 11,200

The full Article 84 amount is paid when:

• Your employer ends the contract (except for the serious misconduct cases below)
• Your fixed-term contract expires naturally and is not renewed
• One of the full-award exceptions in Article 87 applies (explained below)

Step 4: If You Resign, Apply the Article 85 Reduction

If you resign by your own choice, Article 85 reduces your award depending on how long you worked. The reduction is applied after calculating the full Article 84 amount.

Worked Example 3 – Resigning After 3 Years

Karim, a mason earning SAR 2,800, resigns after 3 years.

• Full award: 3 × 1,400 = SAR 4,200
• Resignation share (1/3): SAR 1,400

Worked Example 4 – Resigning After 8 Years

If Ahmed from Example 1 had resigned instead of being let go:

• Full award: SAR 15,400
• Resignation share (2/3): SAR 10,266.67

That is a difference of more than SAR 5,000, so the reason your job ended matters a great deal. Before you sign a resignation letter, check whether your situation actually counts as resignation.

When You Get Full Saudi End of Service Benefits (Article 87)

Some situations override the Article 85 reductions completely, so you receive 100% of the award regardless of your service length. The main ones are:

• Force majeure – you leave because of circumstances beyond your control.
• Leaving because the employer breached the contract (Article 81) – for example, if the employer stops paying your salary, assaults or insults you, makes you do work fundamentally different from your contract, or exposes you to serious safety risks. Construction workers whose wages are delayed for months often fall into this category.
• Female workers who end their contract within six months of marriage or three months of giving birth.

If you are leaving because your company has not paid you, do not simply submit an ordinary resignation. Get advice first, because the wording of how you leave can decide whether you get one-third or the full amount.

When You Lose the Benefit Entirely (Article 80)

Your employer can end your contract without paying the end-of-service award only in the specific misconduct cases listed in Article 80. These include serious acts such as:

• Assaulting the employer, a manager, or a colleague during work
• Fraud, or obtaining the job with false documents
• Serious breach of safety instructions after a written warning
• Absence without valid reason for more than 30 days in one year, or more than 15 consecutive days, after a written warning
• Disclosing the company’s confidential information

The employer must follow the proper procedure and give you a chance to respond. A company cannot simply label any dismissal as “Article 80” to avoid paying. If you disagree, you can challenge it through the dispute process below.

How to Check Saudi End of Service Benefits on Qiwa

Qiwa is the official labour platform of the Ministry of Human Resources and Social Development. It holds your digital employment contract and offers a calculator to estimate your Saudi end of service benefits.

Step-by-Step Qiwa Guide

1. Go to qiwa.sa on your phone or computer.
2. Log in using your Iqama number and Absher-linked credentials. If you don’t have an account, register using your Iqama and the mobile number registered with Absher.
3. Check your contract first. Open your employment contract and confirm your start date, contract type (fixed-term or unlimited), and wage breakdown. If your allowances are missing, that is a warning sign.
4. Open the end-of-service calculator from the tools/calculators section.
5. Enter your details – actual monthly wage (including allowances), start and end dates, contract type, and the reason your contract ended.
6. Click “Calculate” and note the result.
7. Take a screenshot and save it. Compare it with the amount your company offers in your final settlement.

Important: The Qiwa calculator gives an estimate based on the information you enter. It is not a court judgment. If you enter only your basic salary, it will give you a lower number. Always enter your full actual wage.

Also Check Your Salary Records

Saudi Arabia’s Wage Protection System (WPS) records salary payments made by employers through banks. If your company has delayed or reduced payments, these records can support your claim. Keep your own records too: bank statements, payslips, and photos of your contract.

When Must the Employer Pay? (Article 88)

The law sets clear deadlines for your final settlement, including Saudi end of service benefits:

• If the employer ends the contract: payment is due within one week of the last working day.
• If you end the contract: payment is due within two weeks of the last working day.

The employer may deduct only amounts you genuinely owe under the law, such as a documented loan. They cannot hold your money indefinitely, and they cannot make you sign away your rights as a condition of receiving your passport or exit visa.

What to Do If Your Employer Refuses to Pay

Many construction workers face this situation, especially when a contractor runs into financial trouble or a project is cancelled. Here is the official route.

1. Gather Your Documents

• Iqama copy
• Employment contract (download from Qiwa)
• Bank statements or payslips showing your wage
• Your Qiwa calculator screenshot
• Any messages, letters, or termination notice from the company

2. File an Amicable Settlement Claim with HRSD

Every labour dispute in Saudi Arabia starts with the Ministry’s amicable (friendly) settlement service. You file the claim electronically through the HRSD portal. The settlement office usually schedules two sessions with you and your employer within about 21 working days of the first session. Many disputes over Saudi end of service benefits are resolved at this stage.

3. Go to the Labour Court If Needed

If no agreement is reached, the case is referred to the Labour Court under the Ministry of Justice. You can follow your case electronically through the Najiz portal. Workers are exempt from court fees, so you do not need money to pursue your claim.

Labour courts regularly rule in favour of construction workers. In one widely reported case, a Riyadh labour court awarded 149 expatriate workers from 10 nationalities around SAR 28 million in delayed salaries, vacation pay, and end-of-service gratuity after they filed a collective complaint.

4. Don’t Miss the 12-Month Deadline

Under Article 234 of the Labor Law, labour claims must be filed within 12 months of the end of the employment relationship. If you wait longer, you may lose your right to claim. Act quickly, ideally within the first two weeks after your settlement is withheld.

Does Wage Insurance Cover Saudi End of Service Benefits?

Since 6 October 2024, Saudi Arabia has operated the Expatriate Worker Wage Insurance Service for Private Sector Defaults, funded by the government at no cost to workers. It helps workers whose company collapses and stops paying salaries.

• It can cover up to six months of unpaid wages and allowances, up to a maximum of around SAR 17,500 per worker.
• It can provide a return ticket home for workers who wish to leave.
• It generally applies when the employer has not paid wages for more than six months and 80% or more of the company’s expatriate workers are affected.
• You can check whether you are covered at labor.aletihad.sa by entering your Iqama number.

However, this insurance does not cover Saudi end of service benefits. If your contractor defaults, you can claim unpaid wages through the insurance, but you must still pursue your gratuity through the amicable settlement and Labour Court route.

Quick Checklist for Construction Workers

Before you leave any job in Saudi Arabia, go through this list:

• Download your contract from Qiwa and confirm your start date and full wage
• Calculate your actual wage (basic + housing + food + transport + other fixed allowances)
• Count your exact service in years and months
• Confirm the reason your job is ending: termination, contract expiry, resignation, or Article 81 breach
• Run the Qiwa end-of-service calculator and save a screenshot
• Compare your result with the company’s final settlement sheet
• Don’t sign a “full and final settlement” that shows a lower amount without asking questions
• Note the payment deadline: one week (employer ended it) or two weeks (you ended it)
• If unpaid, file an HRSD amicable settlement claim, and do it within 12 months

Frequently Asked Questions About Saudi End of Service Benefits

Do I get end-of-service if I worked less than two years?

If your employer ended the contract or it expired, yes – you get half a month’s wage per year, pro-rated. If you resigned before two years, you get nothing unless an Article 87 exception applies.

Are Saudi end of service benefits calculated on basic salary only?

No. They are calculated on your actual last wage, including regular allowances and benefits in kind. Calculating on basic salary only is the most common way workers are underpaid.

My company didn’t pay my salary for four months, so I left. Is that resignation?

It may count as leaving under Article 81 because of the employer’s breach, which can entitle you to the full award. Seek advice and file through HRSD rather than writing a simple resignation letter.

Can I get my end-of-service if I transfer to another company through Qiwa?

Your relationship with the old employer ends at the transfer, so your end-of-service for that period is due from the old employer. How much depends on whether the move is treated as a resignation or another type of ending.

Does my company need to pay me before I take my final exit?

Yes. The law sets deadlines of one or two weeks after your last working day. You should not have to leave the Kingdom without your dues, and you can file a claim if the company delays.

Final Word

Saudi end of service benefits are often the largest single payment a construction worker receives in Saudi Arabia, sometimes worth many months of salary. Knowing the formula, using your actual wage, checking the figure on Qiwa, and understanding the difference between resignation and termination can protect you from being underpaid.

If your employer refuses to pay, the system is on your side: the amicable settlement is free, the Labour Court charges workers no fees, and courts regularly rule in workers’ favour. Keep your documents safe, act within 12 months, and don’t sign away money you have earned.