Country guide · Saudi Arabia · SAR
A Saudi offer, checked properly
Saudi Arabia's gratuity rewards long service but punishes early resignation, and it adds a cost the other five GCC states don't have: a monthly fee for every dependent on your visa. Here is what the numbers need to include.
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End-of-service gratuity: half a month, then a full month — and resignation tiers
Under Labour Law Articles 84 and 85, you earn half a month's wage per year for years one to five, then a full month per year after that. The base is usually your last basic wage — contract wording can vary this, so check yours.
The part that catches people out: resigning cuts the award, on a sliding scale under Article 85.
- Resign under 2 years — nothing
- Resign 2–5 years — one-third of the award
- Resign 5–10 years — two-thirds of the award
- Resign 10+ years — the full award
Termination by the employer, outside Article 80 cause, pays the full award regardless of service length. Article 87 carves out a few exceptions that restore the full award despite resignation — force majeure, or a woman resigning within six months of marriage or three months of childbirth.
Worked example on SAR 15,000 basic, 6 years' service: half-month × 5 years + 1 month × 1 year = 3.5 months' wage ≈ SAR 52,500 if terminated — but only SAR 35,000 (two-thirds) if you resign at that point. The calculator applies the right tier from your own exit reason.
Rules verified August 2026 · official sources — HRSD / Qiwa
The dependent levy: a cost unique to Saudi Arabia
Saudi Arabia charges SAR 400 per month for each sponsored dependent — a non-Saudi spouse or child under 18 on your iqama — a rate that has held since July 2020. It is your liability by default, not your employer's, unless your contract explicitly says otherwise, so confirm it in writing before you rely on an offer being dependent-free.
It is not billed monthly: it lands as a lump sum when the family iqama is issued or renewed, in 3, 6, 9 or 12-month blocks — for two dependents on a 12-month renewal that's SAR 9,600 in one payment. Budget it as part of your arrival float, not your monthly outgoings. A newly arrived dependent gets a 90-day grace period before the levy starts accruing.
What Saudi living costs look like
Typical monthly figures for a family in Riyadh or Jeddah — the same defaults the calculator loads when you pick Saudi Arabia, editable to your own situation:
| Cost | Typical monthly (SAR) |
|---|---|
| Rent (family apartment/compound) | 11,400 |
| Utilities — electricity, water, internet | 1,620 |
| School fees, per child (÷12) | 4,750 |
| Groceries and household | 3,800 |
| Car, fuel, insurance | 6,180 |
This table excludes the dependent levy above — add SAR 400 per dependent if it applies to you.
The Saudi specifics worth knowing
Rent comes in instalments, not one cheque. Annual agreements are typically split into two to four payments through the year, often via the Ejar government rental platform, with a deposit of roughly one month. Gentler on cash flow than the UAE's up-front model, less generous than Qatar's monthly cheques.
The arrival float needs the dependent levy in it. Deposit, agent fees, school deposits, and — if you're bringing family — the first family iqama renewal, all before your first salary lands. The calculator's one-off section and the dependent levy line together size this properly.
No income tax, but between the dependent levy and the resignation tiers, Saudi packages reward planning to stay and planning your exit carefully — read the numbers before you sign, not after you've resigned.
Questions people ask about Saudi packages
Is the dependent levy avoidable?
Not by you directly — it's a government fee, not something you can opt out of if you sponsor dependents. Some employers agree to cover it as a benefit, but that has to be written into the contract; assume it's yours to pay unless confirmed otherwise.
Does resigning cost me my gratuity?
Partly, on a sliding scale — see the resignation tiers above. This is the opposite of Qatar and the UAE, where resignation no longer reduces the award after one year.
What does a typical package include?
Basic plus housing and transport allowances, annual flights, medical cover, and for families an education allowance — usually per child and capped. Compare offers on the whole package, never on basic alone.
How do I check my employer or my rights?
HRSD and the Qiwa platform are the official sources for labour rules; GOSI handles social insurance. All three are linked from the official links page.
Other countries: Qatar · UAE · Kuwait · Bahrain · Oman — or read clear your debts before you resign.