Saudi End of Service Calculator
Updated November 2026 · Free · No sign-up
Calculate your Saudi end-of-service benefit (EOSB) — half a month per year for the first five, a full month after, the resignation fractions (1/3, 2/3, full), and the wage base that includes allowances.
Quick answer: Saudi EOSB = half a month's wage per year (first 5 years) + one month per year beyond — on the LAST wage including fixed allowances. Resignation pays a fraction: nothing under 2 years, 1/3 for 2-5, 2/3 for 5-10, full at 10+. Termination by the employer pays in full. 8 years at SAR 10,000 ended by the employer = SAR 55,000.
The Saudi Labor Law Formula (Arts. 84-85)
Award = (first 5 years × ½ month's wage) + (years beyond 5 × 1 full month), prorated for partial years, computed on the last wage — which in Saudi practice includes basic plus fixed allowances (housing, transport paid in cash as fixed amounts) — broader than the UAE's basic-only base.
Resignation fractions (Art. 85):
| Service at resignation | You receive |
|---|---|
| Under 2 years | Nothing |
| 2-5 years | 1/3 of the award |
| 5-10 years | 2/3 |
| 10+ years | Full |
Employer termination (not for Art. 80 gross cause), contract expiry, force-majeure exits, and women resigning within 6 months of marriage / 3 months of childbirth pay the FULL award.
Worked Examples
Example 1 — terminated at 8 years, SAR 10,000. (5 × 5,000) + (3 × 10,000) = SAR 55,000.
Example 2 — resigning at 8 years. Same math × 2/3 = SAR 36,667 — resigning two years before the 10-year line costs SAR 18,333; Saudi exits are timed around these fractions.
Example 3 — resigning at 1 year 10 months. Zero. Two more months of patience would bank 1/3 of (1.83... → ~2 years' accrual) — the sub-2-year resignation is the costliest common mistake.
Mechanics That Matter
- Unpaid leave days don't count toward service.
- Last wage rules: commission/variable earners average recent months per the regulations.
- Payment deadline: within one week for employer-ended contracts; two weeks when the worker resigns.
- GOSI is separate — the pension contributions run alongside EOSB, not instead of it (see the GOSI calculator).
- Saudization-era note: EOSB applies equally to Saudis and expats; for Saudis the GOSI pension dominates long-term, for expats EOSB is the exit asset.
Resignation Strategy (The Fraction Cliffs)
The 2/5/10-year cliffs make timing worth real money: at SAR 15,000/month, resigning at 4y11m pays 1/3 × 37,250 ≈ 12,400; at 5y1m it pays 2/3 × 38,000 ≈ 25,300 — two months of waiting doubles the award. The full-award resignation carve-outs (Art. 81 employer breaches — unpaid wages, safety failures, material changes) need documentation; labor-office complaints with WPS records win them.
Disputes and Collection
Route: amicable settlement request → Labour Office (MHRSD) friendly settlement → Labour Court (fast-tracked for wage claims). EOSB claims prescribe 12 months from the end of the relationship — don't sit on them. Final-exit expats: collect before the exit visa; power-of-attorney recovery afterwards is slow. The whole-settlement view (EOSB + unpaid wages + leave encashment + ticket) mirrors the UAE settlement structure with Saudi numbers.
Frequently Asked Questions
How is end of service calculated in Saudi Arabia?
Half a month's wage per year for the first five years, a full month per year after — on the last wage including fixed allowances, prorated for partial years.
How much EOSB do I get if I resign?
Under 2 years: nothing. 2-5 years: one-third. 5-10: two-thirds. 10+: full. Employer terminations and contract expiry pay in full regardless.
Is Saudi EOSB on basic salary or gross?
The "wage" includes basic plus fixed cash allowances (housing, transport) — broader than the UAE's basic-only rule; purely variable pay averages per regulation.
When must EOSB be paid?
Within one week of an employer-ended contract; within two weeks when the employee resigns.
Do I lose EOSB if terminated for cause?
Article 80 gross-misconduct terminations can forfeit it — but the employer carries the burden; disputed Article 80 exits frequently fail at the Labour Court.
Does unpaid leave count toward EOSB service?
No — unpaid leave days are excluded from the service calculation.
✓ Formula verified • Last updated: November 3, 2026