Saudi EOSB rules
| Service | Contract ended by employer / expiry | Employee resigned |
|---|---|---|
| Under 2 years | Full award | Nothing |
| 2 to under 5 years | Full award | 1/3 of award |
| 5 to under 10 years | Full award | 2/3 of award |
| 10 years or more | Full award | Full award |
The award itself is ½ month’s wage per year for the first five years and 1 month’s wage per year after that.
Worked example
Monthly wage SAR 12,000 (basic + housing + transport), 8 years of service.
- First 5 years: ½ × 12,000 × 5 = SAR 30,000
- Next 3 years: 12,000 × 3 = SAR 36,000
- Full award = SAR 66,000
- If the employee resigned: 2/3 × 66,000 = SAR 44,000
Other dues at the end of service
- Unpaid salary up to the last working day
- Cash for accrued, unused annual leave
- Notice-period compensation where notice was not given
- Return ticket where the contract provides it, and a service certificate
Disputes can be raised through the Ministry of Human Resources and Social Development’s Musaned and labour-dispute services. Saudi nationals also receive GOSI pension benefits, which are separate from EOSB.
Working in the UAE instead? Use the UAE gratuity calculator.
Estimates for guidance only. Employment contracts and company policies may be more generous than the law; confirm with HRSD or a lawyer.
Frequently asked questions
How is end of service benefit calculated in Saudi Arabia?
Under Article 84 of the Saudi Labor Law, the award is half a month’s wage for each of the first five years and one month’s wage for each year after that, based on the last wage, with part years counted pro-rata.
How much EOSB do I get if I resign?
Article 85: with 2 to 5 years of service you get one third of the award, 5 to 10 years two thirds, and 10 years or more the full award. Resigning with less than 2 years gives nothing.
Which wage is used – basic or total?
The Labor Law uses the “actual wage”, meaning basic wage plus regular allowances such as housing and transport. Commissions and percentages of sales are based on the average of the last year. Check your contract for what is included.
When must the employer pay?
Within one week of the end of the contract if the employer ended it, or within two weeks if the worker resigned.
When is the full award paid despite resigning?
Article 87 grants the full award if the worker leaves due to force majeure beyond their control, or if a female worker ends her contract within six months of marriage or three months of giving birth.
Last reviewed: October 2026