Saudi End of Service Benefits Calculator (EOSB)
Calculating your end-of-service benefits in Saudi Arabia is now easier than ever with our free end of service calculator. Whether you’re planning to resign, completing your employment contract, or have been terminated, understanding your exact entitlement under Saudi Labor Law is crucial for your financial planning. Our calculator provides accurate results based on the official regulations set by the Ministry of Human Resources and Social Development (HRSD).
What Are End of Service Benefits in Saudi Arabia?
End of service benefits, commonly known as gratuity or EOSB (End of Service Benefits), are mandatory payments that all employers in Saudi Arabia must provide to their employees upon termination of employment. This financial benefit is governed by Articles 84, 85, and 87 of the Saudi Labor Law and serves as a token of appreciation for your years of dedicated service.
The gratuity calculation is based on your last drawn salary (actual wage) and length of service, ensuring you receive fair compensation when leaving your job. This benefit applies to all employees in the private sector, regardless of whether you’re a Saudi national or an expatriate worker.
Understanding Saudi Labor Law: Articles 84 & 85
Article 84: Standard Gratuity Calculation
According to Article 84 of the Saudi Labor Law, when your employment ends due to termination by the employer or contract completion, you are entitled to:
- First 5 years of service: Half month’s salary (15 days) for each year
- After 5 years: One full month’s salary for each additional year
- Partial years: Prorated benefits for any fraction of a year worked
The calculation uses your last actual wage, which includes your basic salary plus all fixed and regular allowances such as housing and transportation allowances.
Article 85: Resignation Scenario
If you voluntarily resign from your position, Article 85 applies different rules based on your service duration:
- Less than 2 years: No gratuity payment
- 2 to 5 years of service: One-third (33.33%) of the full gratuity
- 5 to 10 years of service: Two-thirds (66.67%) of the full gratuity
- 10 years or more: Full 100% gratuity payment
Article 87: Special Circumstances
Under Article 87, you are entitled to full gratuity regardless of service length if:
- You leave due to force majeure (circumstances beyond your control)
- Female employees: Resigning within 6 months of marriage or 3 months after childbirth
How to Calculate Your End of Service Benefits
Formula for Termination/Contract Completion:
For first 5 years:
- Daily wage = (Last basic salary ÷ 30 days)
- Gratuity for first 5 years = Daily wage × 15 days × Number of years
For years beyond 5:
- Gratuity = Monthly salary × Number of years (beyond 5 years)
Total EOS Benefit = Gratuity (first 5 years) + Gratuity (years beyond 5)
Practical Example:
If your last salary is SAR 10,000 and you’ve worked for 7 years:
Termination Scenario:
- First 5 years: (10,000 ÷ 30) × 15 × 5 = SAR 25,000
- Next 2 years: 10,000 × 2 = SAR 20,000
- Total: SAR 45,000
Resignation Scenario (5-10 years):
- Full gratuity: SAR 45,000
- Your entitlement (2/3): SAR 30,000
💡 Note: If you’re working in the UAE or planning to move there, the gratuity calculation differs significantly. Check our Gratuity Calculator Dubai UAE to understand how end-of-service benefits work under UAE labor law, where employees receive 21 days of salary for the first 5 years and 30 days thereafter.
Who Is Eligible for End of Service Benefits?
All private sector employees in Saudi Arabia are eligible, including:
- Saudi nationals
- Expatriate workers (all nationalities)
- Full-time and part-time employees
- Fixed-term and unlimited contract holders
- Household workers (separate calculation: 1 month per 4 years under Article 22 of Domestic Workers Law)
Note: You will not receive gratuity if terminated under Article 80 for serious misconduct such as fraud, negligence, or criminal activities.
When Should You Receive Your Payment?
According to Saudi Labor Law, employers must settle your end of service benefits:
- If terminated by employer: Within one week (7 days) from your last working day
- If you resign: Within two weeks (14 days) from your last working day
The payment must include all your final dues: gratuity, unpaid salary, and any unused annual leave encashment.
Why Use Our End of Service Calculator Saudi Arabia?
Manual calculations can lead to errors, especially when dealing with partial years or complex resignation scenarios. Our EBS calculator ensures:
✓ 100% Accurate calculations based on current Saudi Labor Law
✓ Instant results with detailed breakdowns
✓ Multiple scenarios – compare termination vs. resignation outcomes
✓ Prorated calculations for months and days
✓ Free to use with unlimited calculations
Simply enter your basic salary, start date, end date, and employment status to get your exact gratuity amount in seconds.
What Salary Components Are Included?
Your gratuity is calculated using your actual wage, which comprises:
- Basic salary
- Fixed housing allowance
- Fixed transportation allowance
- Regular periodic increments
Excluded: Overtime pay, annual bonuses, one-time allowances, and variable commissions (unless specified in your contract).
Does Unpaid Leave Affect My Gratuity?
Yes. Days of absence without pay or unauthorized leave are typically deducted from your total service period calculation, potentially reducing your final gratuity amount.
Can My Employer Refuse to Pay?
No. End of service benefits are a non-negotiable legal right under Saudi Labor Law. Any agreement attempting to waive these rights is considered null and void. If your employer refuses payment, you can file a complaint with the Ministry of Human Resources and Social Development through their Qiwa platform.
Calculate Your Benefits Now
Ready to know your exact entitlement? Use our free end of service calculator above to determine your gratuity based on your specific employment situation in Saudi Arabia. Our calculator automatically applies the correct formula whether you resigned or were terminated, ensuring you get accurate results every time.
For official verification or legal disputes, visit the Ministry of Human Resources and Social Development website or consult with a labor law specialist. Our end of service calculator provides reliable estimates to help you plan your finances confidently.
Disclaimer: This calculator provides estimates based on Saudi Labor Law as of December 2025. For binding calculations in legal disputes, please consult the official HRSD calculator or seek professional legal advice.
Frequently Asked Questions (FAQs)
1. Are end of service benefits taxable in Saudi Arabia?
No, Saudi Arabia does not impose personal income tax on individuals. Your gratuity payment is received tax-free and does not require any tax declaration.
2. What if I switch jobs frequently in Saudi Arabia?
Each employer is responsible only for the gratuity related to the time you worked with them. Your service period does not carry over between different companies. If you resign before completing 2 years with any employer, you won’t receive gratuity from that employer.
3. Can I receive partial payments of my gratuity during employment?
No. Under Saudi Labor Law, the end of service benefit is only paid upon termination of your employment relationship. It cannot be paid in installments or withdrawn during active employment.
4. How is gratuity calculated for part-time employees?
Part-time employees follow the same calculation method under Articles 84 and 85, but the gratuity is calculated based on their actual basic salary and service period. The formulas remain identical to full-time employees.
5. What happens to my gratuity if my company goes bankrupt?
End of service benefits are classified as first-rate privileged debts over all the employer’s assets according to Saudi Labor Law. This means your gratuity has priority over most other company debts during bankruptcy proceedings.
6. Do I get gratuity if I’m terminated during probation period?
No. During the probation period (typically 90 days, extendable to 180 days), either party can terminate without notice and without any end of service benefit payment. However, if you’re an expatriate, repatriation costs must still be covered by the employer.
7. Can my employer deduct any amounts from my gratuity?
Yes, but only for legitimate work-related debts such as loans from the company, outstanding advances, or damages caused by your negligence. These deductions must be documented and cannot exceed the amount you actually owe.
8. What if my employment contract has a different gratuity formula?
Any contract provision that gives you more than the statutory minimum is valid and enforceable. However, any clause that reduces your entitlement below what’s mandated by Articles 84 and 85 is automatically void and unenforceable.
9. How do I verify my gratuity calculation is correct?
You can use the official HRSD End of Service Benefit Calculator available on their website (hrsd.gov.sa) or use our calculator for an instant estimate. For disputes, contact the Labor Dispute Settlement Committee through the Qiwa system.
10. Are household workers entitled to the same benefits?
No. Household workers (domestic workers) follow Article 22 of the Domestic Workers Law, which entitles them to one month’s salary for every four consecutive years of service – different from the standard calculation.