How Much Gratuity After 10 Years in Saudi Arabia? 2026 Guide
Written by Usama Afzal, Founder & Editor, GratuityHisab. Last updated: October 2026. Based on the Saudi Labour Law; not legal advice.
After 10 years in Saudi Arabia, your gratuity is 7.5 months’ wages: half a month’s wage for each of the first 5 years (2.5 months) plus one full month’s wage for each of the next 5 years (5 months), under Article 84 of the Saudi Labour Law. On a SAR 10,000 monthly wage that means SAR 75,000 — with no cap, and the full amount even if you resign. The wage used is your last actual wage: basic salary plus fixed allowances like housing. Overtime, bonuses and commissions are excluded.
Gratuity after 10 years in Saudi Arabia: the short answer
Ten years of work is a decade of your life, and the law puts a clear number on it: gratuity after 10 years in Saudi Arabia comes to 7.5 months’ wages. That single number is what most workers get wrong — they either trust whatever the HR sheet says, or they quietly accept less. This guide walks you through the exact formula, a real SAR 8,000 example, and the tricks that can shrink your payout.
SAR 10,000 wage → SAR 75,000. SAR 6,000 wage → SAR 45,000. No cap, full amount on resignation.
To skip the maths, run our free Saudi gratuity calculator — it applies the 10-year gratuity Saudi Arabia formula automatically. For the general formula across all service lengths, see how gratuity is calculated in Saudi Arabia.
How the 10-year gratuity formula works (Article 84)
Article 84 of the Saudi Labour Law (Royal Decree M/51) sets a two-tier formula for a full decade of Saudi service: half a month’s wage for each of the first 5 years of service, and one full month’s wage for each year after that.
- Years 1–5: 5 × half month = 2.5 months’ wages.
- Years 6–10: 5 × full month = 5 months’ wages.
- Total gratuity after 10 years in Saudi Arabia = 7.5 months’ wages.
Unlike the UAE, which caps gratuity at 2 years’ wages, Saudi law puts no cap on the amount — 7.5 months is yours in full. And you only need 2 years of service to qualify at all (Article 85), so a 10-year worker is well past the minimum.
Step-by-step: your 10-year payout on SAR 8,000
Here is the full gratuity calculation for 10 years in Saudi Arabia on a real salary, step by step:
Worked example: SAR 8,000 wage, 10 years of service
- Find your wage: last actual wage = basic SAR 6,500 + housing allowance SAR 1,500 = SAR 8,000. (Overtime and bonuses don’t count.)
- First 5 years: 5 × 0.5 month × 8,000 = SAR 20,000.
- Next 5 years: 5 × 1 month × 8,000 = SAR 40,000.
- Gratuity after 10 years in Saudi Arabia = 20,000 + 40,000 = SAR 60,000.
That worker walks away with SAR 60,000 — seven and a half months of salary. Try your own numbers in the Saudi gratuity calculator.
Gratuity after 10 years in Saudi Arabia: wage table (5 vs 7 vs 10 years)
The table shows what workers earn after a decade in Saudi Arabia at common wages, next to 5-year (2.5 months) and 7-year (4.5 months) amounts for comparison:
| Monthly wage | 5 years (2.5 months) | 7 years (4.5 months) | 10 years (7.5 months) |
|---|---|---|---|
| SAR 5,000 | 12,500 | 22,500 | 37,500 |
| SAR 6,000 | 15,000 | 27,000 | 45,000 |
| SAR 8,000 | 20,000 | 36,000 | 60,000 |
| SAR 10,000 | 25,000 | 45,000 | 75,000 |
| SAR 12,000 | 30,000 | 54,000 | 90,000 |
| SAR 15,000 | 37,500 | 67,500 | 112,500 |
Notice how the jump from 5 to 10 years is not just double — because years 6–10 pay a full month each, the 10-year award grows faster than the years themselves. Compare with gratuity after 5 years in Saudi Arabia.
Which wage counts toward your 10-year gratuity
The formula uses your last actual wage — not the basic salary alone, and not everything on your payslip. Here is how to count a decade of Saudi gratuity correctly:
- Included: basic salary + fixed allowances you receive regularly, like housing allowance and transport allowance.
- Excluded: overtime pay, bonuses, commissions, and other variable extras.
This matters a lot. A worker with SAR 6,500 basic and SAR 1,500 housing gets the 10-year Saudi gratuity on SAR 8,000 → SAR 60,000. If the employer counts only the basic SAR 6,500, the payout drops to SAR 48,750 — a loss of SAR 11,250. Check your last payslip line by line.
Resignation vs termination: full gratuity after 10 years in Saudi Arabia
Resignation reduces gratuity in Saudi Arabia — but only for shorter service. The tiers work like this: 2–5 years of service → one-third of the award; 5–10 years → two-thirds; 10 years or more → the full award.
So if you resign after 10 years in Saudi Arabia, you keep the full 7.5 months’ wages — exactly the same as if the employer ended the contract. The reduction tiers simply don’t touch you. (Resign before 2 years, on the other hand, and you get nothing — see resigning before 2 years in Saudi Arabia.)
Gratuity can still be lost on dismissal for serious misconduct — but ordinary resignation after a decade never reduces it. Make sure the resignation is in writing, dated, and accepted.
Partial years: 10.5 years of service
Service doesn’t have to be round years. Fractions of a year are paid pro-rata — so 10 years and 6 months counts as 10.5 years in the formula: 2.5 months (first 5 years) + 5.5 months (years 6–10.5) = 8 months’ wages.
On a SAR 6,000 wage that is 8 × 6,000 = SAR 48,000. Don’t let anyone round your service down to the nearest full year — every completed month adds to gratuity after 10 years in Saudi Arabia calculations.
4 tricks that shrink your 10-year Saudi gratuity — watch out
- The fake cap. Employers sometimes claim gratuity is capped at some amount, copying the UAE rule. Saudi law has no cap — 7.5 months is 7.5 months.
- Basic-salary-only maths. Calculating a 10-year Saudi award on the basic wage while ignoring fixed allowances. Your last actual wage includes them.
- Using the 5-year formula. A settlement sheet that applies half-a-month for all 10 years (5 months) instead of the correct 7.5 months steals 2.5 months from you.
- Pressuring a quick signature. A rushed “final settlement” signed before you check the number. Always run the Saudi gratuity calculator first.
If your employer refuses to pay at all, the path is documented here: what to do when your employer doesn’t pay gratuity in Saudi Arabia.
Gratuity after 10 years in Saudi Arabia: your 5-minute action checklist
- Write down your last actual wage: basic + fixed allowances (housing, transport). Exclude overtime and bonuses.
- Multiply by 7.5 — that is your 10-year Saudi gratuity in one step.
- Add any unused leave and notice pay to the final settlement — see unused leave encashment and notice period in Saudi Arabia.
- Compare the HR sheet’s number with your own — differences usually hide in the wage base.
- Never sign a settlement you haven’t verified with the Saudi gratuity calculator.
Related guides
- How gratuity is calculated in Saudi Arabia
- Gratuity after 5 years in Saudi Arabia
- Does gratuity include housing allowance in Saudi Arabia?
- Saudi gratuity calculator
Frequently asked questions
How much gratuity do I get after 10 years in Saudi Arabia?
Gratuity after 10 years in Saudi Arabia is 7.5 months’ wages: half a month for each of the first 5 years (2.5 months) plus one full month for each of the next 5 years (5 months). On SAR 10,000 monthly wage that is SAR 75,000; on SAR 6,000 it is SAR 45,000. Saudi law sets no cap.
What is the gratuity formula for 10 years of service in Saudi Arabia?
Article 84 of the Saudi Labour Law: (5 years × half month) + (5 years × full month) = 7.5 months of your last actual wage. Your last actual wage = basic salary + fixed allowances like housing; overtime, bonuses and commissions are excluded.
Is there a cap on gratuity in Saudi Arabia?
No. Unlike the UAE, which caps end-of-service gratuity at 2 years’ wages, Saudi law puts no cap on gratuity after 10 years in Saudi Arabia — the full 7.5 months’ wages is owed whatever your wage level.
Do I get full gratuity if I resign after 10 years in Saudi Arabia?
Yes. Resignation tiers (one-third for 2–5 years, two-thirds for 5–10 years) stop mattering at 10 years — you receive the full 7.5 months’ wages, the same as if the employer terminated the contract. Resigning before 2 years gets nothing.
Is gratuity calculated on basic salary or total salary in Saudi Arabia?
Gratuity after 10 years in Saudi Arabia is calculated on your last actual wage: basic salary plus fixed allowances (like housing and transport). Overtime, bonuses and commissions are excluded. If the employer counts basic only, you lose a large share — check your payslip.
Work out your own amount
Enter your dates and salary to see your end-of-service pay instantly.
More questions
- Resign before 2 years: do you get gratuity?
- Is housing allowance included in gratuity?
- Company not paying gratuity? What to do
- How is unused leave paid?
Sources
This guide is based on the Saudi Labor Law (Royal Decree No. M/51). Labour laws are amended from time to time; for the latest version, always check the official gazette of Saudi Arabia.
