Is housing allowance included in Saudi gratuity?
Last updated: October 2026. Based on the Saudi Labour Law; not legal advice.
Usually yes. Saudi law calculates the end-of-service award on your last actual wage: basic salary plus fixed, regular allowances such as housing and transport. Pay that changes from month to month, like overtime or commission, is usually left out. Some contracts say otherwise, so check yours.
What usually counts, and what doesn't
Usually counted: basic salary, a housing allowance paid in cash every month, a fixed monthly transport allowance, and other fixed allowances. Usually not counted: overtime, commission or bonuses that vary, and one-off payments. If the company gives you accommodation instead of a cash housing allowance, how it's treated depends on your contract.
How big is the difference?
Example: basic SAR 4,000, housing SAR 1,000 and transport SAR 400, so a total wage of SAR 5,400. The employer ends the contract after 6 years.
| Calculated on | Full award (SAR) |
|---|---|
| Basic only (4,000) | 14,000 |
| Total wage (5,400) | 18,900 |
That's a difference of SAR 4,900 for the same job.
Your last wage, not your first
The award uses the wage you were earning at the end. If you started at SAR 3,000 and finished at SAR 5,000, every year of service is counted at SAR 5,000.
If your company uses basic salary only
Ask HR in writing for a breakdown of how your settlement was calculated, and compare it with your contract on the Qiwa platform. If you still disagree, you can request a free amicable settlement with the Ministry of Human Resources. See what to do if your company doesn't pay. Our calculator lets you choose total wage or basic only, so you can see both amounts.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.