What does the calculator compute?
The tool applies Article 77 of the Labor Law issued by Royal Decree M/51, as amended by Royal Decree M/44 of 1446H, effective 19 February 2025. It calculates the stated formula; it does not decide whether a particular termination was lawful or unlawful.
Where the contract specifies no compensation, Article 77 provides:
| Contract type | Compensation formula | Statutory floor |
|---|---|---|
| Indefinite term | 15 days' wage for each service year | Two months' wage |
| Fixed term | Wage for the remaining contract term | Two months' wage |
The calculator shows the formula amount before the floor, the value of two months' wage, and then the higher amount. It does not automatically add other employment entitlements. For an indefinite contract, it produces a number only when the user confirms there are no additional months or days beyond the whole years entered. If there is a partial year, the tool stops instead of rounding the service period down.
Five conditions before a number appears
First, the user checks whether the contract already specifies compensation for termination for an unlawful reason. If it does—or if the user has not checked or is unsure—the tool stops because uncertainty cannot be treated as the absence of a clause, and the effect of existing wording cannot be replaced automatically with the statutory formula.
Second, the user confirms that the calculation is made on an assumption that Article 77 applies. That confirmation does not prove applicability; it prevents a numerical output from appearing as if the tool decided the legality of the termination.
Third, the user confirms that the entered figure is a fixed monthly actual wage under Article 2, including qualifying additions shown in the employment records. The tool stops for non-monthly or variable pay. Article 96 supplies special averaging rules for piecework, production, commission, and percentage-based pay, and those cases need their actual records rather than a generic amount.
Fourth, the user confirms that Article 2's default 30-day month applies and that the contract or work regulation does not define the month differently for the calculation. A “no” or uncertain answer suppresses the result.
Fifth, for an indefinite contract, the user checks the exact service dates. “Yes / not sure” routes the calculation to legal review and suppresses the number; only a confirmed absence of additional months or days unlocks the whole-year path. This containment remains until a qualified reviewer approves a sourced partial-period method.
What is excluded from the result?
- Notice pay governed by Articles 75 and 76.
- End-of-service benefit.
- Outstanding wages and unused-leave pay.
- Bespoke contractual compensation.
- Variable-pay averaging or a non-default month definition.
- Assessment of evidence, the termination reason, or Article 80.
Those items are legally and mathematically distinct. The notice-period calculator and end-of-service calculator keep their calculations separate so each output remains transparent.
Why is no AI needed?
The formula is defined and does not require a language model. The arithmetic runs in the browser, and wages and service duration are not sent to an AI model. The wider legal context is covered in the Article 77 guide.