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Everything you need to know about calculating End of Service Benefits under Articles 84-85 of Saudi Labor Law
Calculate Your Benefits NowEnd of Service Formula:
Years 1-5: 0.5 × Monthly Salary × Years
Years 6+: 1.0 × Monthly Salary × Years
Source: Article 84 of Saudi Labor Law
End of Service Benefit (ESB) is a monetary amount owed to employees upon termination of employment, whether by resignation, contract expiry, or dismissal. It is a right guaranteed under Saudi Labor Law.
The benefit is calculated based on the employee's last salary, including basic salary, housing allowance, transportation allowance, and any other fixed allowances.
| Years of Service | Formula | Example (SAR 10,000 salary) |
|---|---|---|
| 1-5 years | 0.5 × Salary × Years | 5 × 5,000 = SAR 25,000 |
| 6-10 years | 1.0 × Salary × Years | 5 × 10,000 = SAR 50,000 |
| Total (10 years) | SAR 75,000 |
Employee is not entitled to End of Service if terminated under Article 80 in the following cases:
Use AqlHR's free calculator to accurately calculate your benefits according to Saudi Labor Law