When an employment relationship ends — whether by resignation, contract expiry, or dismissal — your right is not limited to the end-of-service gratuity alone. You are owed a final settlement that brings together everything due to you: your last salary, the payout for unused annual leave, the gratuity, and any overdue allowances or commissions. This guide explains what the final settlement (mukhalasa) includes under Saudi Labor Law, the legal deadline for paying it, one point expats commonly get wrong about GOSI, and the steps to claim if your dues are late or unpaid.
In this guide
1. What the final settlement includes
The final settlement is the document that totals your money entitlements when you leave a job, signed by both parties as acknowledgement that dues have been met. A proper settlement itemizes each component so you can confirm nothing was quietly dropped:
| Item | Description | Legal basis |
|---|---|---|
| Last month’s salary | Wages owed for the final work period, not yet paid | Art. 88 & 90 |
| Unused annual leave | Cash value of your remaining accrued leave balance | Art. 111 |
| End-of-service gratuity | Progressive award for your service length, on last wage | Art. 84 & 85 |
| Other dues | Overdue fixed allowances, earned commissions, overtime pay | Contract + Art. 107 |
The practical rule: settlement = last month's salary + unused leave payout + end-of-service gratuity + any other overdue dues.
2. Last salary and unpaid dues
The first component of the settlement is the wage for the final period actually worked that has not yet been paid. If you worked part of the final month, you are owed those days pro-rated (monthly wage ÷ 30 × number of days). To this are added any overdue amounts such as:
- Overdue fixed allowances: housing or transport allowance for the final period.
- Overtime pay: extra hours not yet counted, at the wage + 50% under Article 107.
- Earned commissions and bonuses: commissions actually earned under the contract or work regulations.
Note: variable pay (such as commissions) belongs in the last salary if it has been earned, but it does not usually enter the base used to calculate the gratuity and leave, which rests on the fixed wage.
3. Unused annual leave payout (Article 111)
Article 111 entitles the worker, at the end of the relationship, to a cash payment for accrued annual leave days not used. In other words, an accumulated leave balance does not lapse — it converts into an amount paid within the settlement.
- Balance covered: unused leave days from prior years + a pro-rated portion for the months of the final year.
- Calculation basis: the worker's last wage (daily wage = monthly wage ÷ 30).
- Leave entitlement: at least 21 days per year, rising to 30 days after 5 continuous years of service.
Example: someone on SAR 12,000 with a 20-day unused balance is owed: (12,000 ÷ 30) × 20 = SAR 8,000 in leave pay.
4. End-of-service gratuity (Articles 84 & 85)
The end-of-service gratuity is usually the largest line in the settlement. Article 84 grants the worker half a month's wage for each of the first five years and a full month's wage for each year thereafter, calculated on the last wage including fixed allowances.
The reason the relationship ended materially changes the amount: on contract expiry or employer-initiated termination the gratuity is paid in full, whereas on resignation a graduated scale applies (nothing before two years, then one-third, then two-thirds, then full after 10 years). We won't re-derive the whole table here; see the detail and the resignation-vs-termination difference in the end-of-service gratuity guide and calculator.
5. Payment timeline (Article 88)
The employer cannot delay the settlement indefinitely. Article 88 sets the payment deadline based on which party ended the relationship:
| Who ended the relationship | Deadline to pay all dues |
|---|---|
| Employer (dismissal) or contract expiry | One week at most from the end date |
| Worker (resignation) | Two weeks at most from the end date |
The longer window on resignation reflects the employer's need for time to complete handover procedures. Exceeding these periods turns the delay into a violation you can raise with the authorities.
6. Expats and GOSI: a common myth corrected
One of the most common mistakes is an expat believing they will recover "some money from GOSI" when they leave Saudi Arabia. The legal reality:
- A non-Saudi employee does not contribute to the pension (Annuities) branch or to SANED, so there is no social insurance deduction from their salary.
- The only contribution made for them is the Occupational Hazards branch, which the employer alone pays (it never appears on the expat's payslip).
- Because they never paid a pension contribution, there is no "refund" or insurance pension paid to them on exit.
Bottom line: an expat's exit benefit is the statutory end-of-service gratuity (Article 84) paid directly by the employer — not a GOSI payout. The same private-sector formula applies to expats and Saudis alike. More detail in the GOSI guide and the expat guide.
7. How to claim if you are not paid
If the employer delays or refuses to pay the settlement, follow this escalating path:
- Written amicable request: formally list your dues and their due date to the employer, and keep a copy.
- Amicable settlement via "Wud" on Qiwa: file an online settlement request; a period is given to reach agreement before escalation.
- Labor Court: if no agreement is reached, the dispute is automatically referred to the Labor Court to decide.
- Document everything: contract, payslips, termination letters, and any correspondence — these are your evidence.
Worked example: a full settlement
An employee on a total monthly wage of SAR 12,000, with 6 years of service, whose fixed-term contract expired (full entitlement), holding a 20-day leave balance, and having worked the final month in full:
- Last month's salary: SAR 12,000.
- Leave payout: (12,000 ÷ 30) × 20 = SAR 8,000.
- End-of-service gratuity: (5 years × half month) + (1 year × full month) = 3.5 months × 12,000 = SAR 42,000.
Total settlement = 12,000 + 8,000 + 42,000 = SAR 62,000, payable within one week of the contract's end under Article 88.
Calculate your own figures precisely with the end-of-service calculator, your monthly net with the salary calculator, and review the rest of your rights in the Labor Law guide.
Frequently Asked Questions
How long does the final settlement take after leaving a job?
Under Article 88: if the employer ends the contract or a fixed-term contract simply expires, all entitlements are paid within one week of the relationship ending. If the worker resigns, the employer has up to two weeks at most to settle everything owed.
Am I owed pay for annual leave I did not take?
Yes. Article 111 gives the worker a cash payment for accrued annual leave days not taken when the relationship ends, including balances carried over from prior years plus a pro-rated portion for the final year. It is calculated on the last wage (daily wage = monthly wage ÷ 30).
Do expats get a GOSI refund when they leave Saudi Arabia?
There is no pension refund for an expat because expats do not contribute to the pension branch at all. A non-Saudi employee has no social insurance deduction (no Annuities, no SANED); only the Occupational Hazards branch is paid, and the employer alone pays it. So an expat’s exit benefit is the statutory end-of-service gratuity (Article 84), not a GOSI payout.
What if the employer refuses to pay the settlement?
Start with a written amicable request, then file an amicable settlement through the "Wud" service on the Qiwa platform. If no agreement is reached within the set period, the dispute moves to the Labor Court. Keep your contract, payslips, and any correspondence as evidence.
Should I sign a blank settlement?
No. Never sign a blank settlement or one with no amounts written in. A settlement (mukhalasa) is your acknowledgement that you received everything owed, so make sure the figures (salary + leave + gratuity) are written and correct before signing, and keep a signed copy.
Official sources
The figures and rules on this page are based on the following official references:
Related tools
Calculator
Compute net salary with housing allowance, transport, and 9.75% GOSI social-insurance deduction.
Salary Scales
Over 60 official salary scales for government and private sectors with rank and step details.
End of Service
Precisely compute your EOSB per Articles 84 and 85 of the Saudi Labor Law.
Overtime
Compute overtime pay at 1.5× your hourly rate per Article 107 of the Labor Law.
Payment Dates
Track salary, Citizen Account, and Social Security payments with automatic weekend adjustment.
Loan Eligibility Calculator
Compute your DBR and the maximum personal loan you qualify for under SAMA rules (33% for Saudis).
Mortgage Calculator
Find your maximum property price and required down payment by LTV, tenor, and housing support.
Car Finance Calculator
Compute the monthly installment and total cost of your car finance (Murabaha or Ijara).