End of Service Benefits in Saudi Arabia
مكافأة نهاية الخدمة - Complete Guide 2025
Quick Answer
End of service benefit (EOSB) is calculated as half month's salary for each of the first 5 years, plus one full month's salary for each year after that. The calculation is based on the last basic salary plus housing allowance.
Calculation Formula
First 5 Years
0.5 × Monthly Wage × Years of Service
After 5 Years
1.0 × Monthly Wage × Years of Service
Resignation Entitlements
| Years of Service | Entitlement |
|---|---|
| Less than 2 years | 0% (No entitlement) |
| 2 to 5 years | One-third (33%) |
| 5 to 10 years | Two-thirds (67%) |
| 10+ years | Full amount (100%) |
Frequently Asked Questions
End of service benefit is calculated as: half month's salary for each of the first 5 years, plus one full month's salary for each year after that. The calculation is based on the last basic salary plus housing allowance.
An employee is entitled to full end of service benefit when: (1) the employer terminates the contract, (2) the contract expires and is not renewed, (3) the employee resigns after 10+ years of service, or (4) the employee resigns for valid reasons under Article 81.
For resignation: 0% if less than 2 years, one-third if 2-5 years, two-thirds if 5-10 years, and full amount if 10+ years. Female employees resigning within 6 months of marriage or 3 months of childbirth receive full benefits regardless of service length.
Yes, the end of service benefit is calculated based on the last 'wage' which includes basic salary plus housing allowance (or 25% of basic if housing is provided in kind). Other allowances like transportation are typically not included.
The employer must pay end of service benefits within one week of the contract ending if the employer terminated, or within two weeks if the employee resigned. Delays may result in penalties and labor complaints.