How the calculator works it out
Under article 84: half a month's wage for each of the first five years and a full month's wage for each year after, on the last actual wage, with parts of a year counted pro rata. Under article 2 the actual wage is the basic wage plus allowances and commissions due, except commissions excluded by written agreement (article 86).
On resignation article 85 applies: under two years nothing, two to five years a third, more than five and under ten two thirds, ten years or more the full benefit.
Example: 7 years 6 months, last wage SAR 6,000, employer ended the contract: 5 × 3,000 + 2.5 × 6,000 = SAR 30,000. Had the employee resigned after the same service: two thirds, SAR 20,000.
What it does not cover: dismissal under article 80, ending the contract during probation (article 54), or a contract or policy that pays more.