Two articles decide your money when you resign in Saudi Arabia, and confusing them is the most expensive mistake expats make. Article 84 calculates the award. Article 85 decides how much of it you actually get when YOU are the one who resigns.
Article 84 formula: half a month’s wage for each of the first five years of service, plus one full month’s wage for each year after that, based on your last actual wage — which means basic salary PLUS fixed allowances such as housing and transport, not basic alone. Fractions of a year are prorated.
Article 85 resignation tiers: if you resign with less than 2 years of service, you get zero. From 2 to 5 years, you get one-third of the Article 84 award. From more than 5 to less than 10 years, two-thirds. At 10 years or more, the full award.
Worked example: last actual wage SAR 10,000 per month, 8 years of service. Article 84 award: first 5 years = 5 x 0.5 x 10,000 = SAR 25,000; remaining 3 years = 3 x 1.0 x 10,000 = SAR 30,000; total = SAR 55,000. Resigning at 8 years falls in the two-thirds tier: 55,000 x 2/3 = SAR 36,666.67.
Exceptions that pay the FULL award despite resignation: resigning because the employer failed its obligations (for example non-payment of wages) or committed violence against you, and the statutory exceptions under Article 87, including a female worker resigning within 6 months of marriage or within 3 months of giving birth. The resignation process itself follows the 2025 Article 79 Bis rules (Qiwa process, 30-day auto-acceptance, 7-day withdrawal window).
Settlement timeline under Article 88: when the employer ends the contract, dues must be settled within one week; when you resign, within two weeks. The employer may deduct legitimate work-related debts from the settlement.
This is general information, not legal advice.
Sources: Saudi Labour Law, Articles 84, 85, 87, 88; Article 79 Bis (2025 amendment).
Related: Saudi end-of-service calculator, Resigning in Saudi Arabia — Article 79 Bis, How to claim unpaid EOSB in Saudi Arabia.