Saudi Article 77 compensation: 15 days a year or the rest of the term, at least 2 months
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 17 Oct 2026.Under Article 77 of the Saudi Labour Law, a contract ended without a valid reason earns the affected party 15 days of wage for each year of service (indefinite contract) or the wage for the rest of the term (fixed contract), never less than two months' wage. 7 years and 181 days on SAR 10,000 gives SAR 37,479.45.
2026 · Rates and rules read from the sources listed on this page (the earliest on 17 Oct 2026); they may have changed since.
Choose an indefinite or a fixed-term contract.
Enter the start date and the last working day; for a fixed term, also the date the contract was due to end.
Type the monthly wage with allowances (the actual wage).
Read the compensation, with the two-month minimum applied where the formula gives less.
This calculator works out the compensation in Article 77 of the Saudi Labour Law, owed when one side ends an employment contract without a valid reason and the contract itself sets no compensation. The rules are those the Ministry of Human Resources publishes in the law and in its 2025 awareness guide.
Indefinite contracts. The affected party is owed 15 days of wage for each year of service. With a month of 30 days, that is half a month's wage per year. The calculator counts whole years by anniversary and the remaining days in proportion, over 365; the article speaks of "each year" and does not say how part years count, so the page states the method.
Fixed-term contracts. The affected party is owed the wage for the remainder of the term: the calculator counts whole calendar months from the day after the last working day to the contract's end date, then the days left at the wage ÷ 30.
The minimum. Either way, the compensation is never less than two months' wage. A worker dismissed without a valid reason after eight months of an open-ended contract still receives two months.
Which wage. The Labour Law says that "wage" means the actual wage: basic pay plus housing, transport and the other regular allowances.
A worked example. An open-ended contract from 1 January 2019 to 30 June 2026 is 7 years and 181 days. On SAR 10,000 a month, 15 days are SAR 5,000 a year: 5,000 × (7 + 181 ÷ 365) = SAR 37,479.45, above the SAR 20,000 minimum.
Who is owed. The party affected by the termination: usually the worker, but an employer whose worker leaves without a valid reason can claim the same.
Not included. Notice-period pay, the end-of-service award (paid on top), unpaid wages and leave, and what a labour court may decide.
Everything runs in your browser; nothing you type is sent anywhere.
For an open-ended contract, 15 days of actual wage for each year of service, which is half a month's wage per year. For a fixed-term contract, the wage for the rest of the term. In both cases the result is raised to two months' wage if it comes out lower.
Two months of the worker's wage. Paragraph 3 of Article 77 says the compensation for either kind of contract shall not be less than the wage for two months, so a short open-ended contract or a fixed term nearly over still pays at least that amount.
The wage for the remainder of the contract term, counted from the day after the last working day to the agreed end date. Fourteen months left on SAR 8,000 a month comes to SAR 112,000. When less than two months remain, the two-month minimum applies instead.
Yes. Article 77 compensates for ending the contract without a valid reason; the end-of-service award rewards the years served and is worked out separately. A worker dismissed unlawfully is owed both, together with any unpaid wages and leave, which this calculator does not include.
The actual wage. Article 2 of the Labour Law defines wage as the actual wage, meaning the basic wage plus housing, transport and the other regular allowances and increments. One day's wage is the actual monthly wage divided by 30.
The article gives the compensation to the party affected by the termination. A worker who walks out of an open-ended or fixed-term contract without a valid reason can therefore owe the employer the same amount, unless the contract sets a different compensation.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Saudi Article 77 Compensation Calculator and anybody who knows can answer. No account needed.
Same job, other tools: GOSI Calculator – The GOSI annuities and SANED contribution a Saudi employee pays each month · Hisab Badal al-Ijaza (Saudi Leave Pay) – حساب بدل الإجازة في السعودية: رصيد الإجازة السنوية وقيمته عند ترك العمل · Al-Muqabil al-Mali Calculator (Saudi Levy) – حاسبة المقابل المالي: رسوم العمالة الوافدة والمرافقين في السعودية · Hasibat al-Taminat al-Ijtimaiya (GOSI) – حاسبة التأمينات الاجتماعية: GOSI deductions and the employer’s share in Saudi Arabia · Hisab al-Amal al-Idafi (Saudi Overtime) – حساب العمل الإضافي في السعودية: الأجر الفعلي للساعة مع 50% من الأجر الأساسي.
On the related tools: PF Calculator – What your PF account will hold when you retire.
More for Saudi Arabia: all 7 Saudi Arabia calculators.