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Saudi Labor Law

End of Service Benefits Guide

Everything you need to know about calculating End of Service Benefits under Articles 84-85 of Saudi Labor Law

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Quick Answer

End 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

What is End of Service Benefit?

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.

Calculation Table

Years of ServiceFormulaExample (SAR 10,000 salary)
1-5 years0.5 × Salary × Years5 × 5,000 = SAR 25,000
6-10 years1.0 × Salary × Years5 × 10,000 = SAR 50,000
Total (10 years)SAR 75,000

Resignation vs Termination

Resignation

  • Less than 2 years: No benefit
  • 2-5 years: 1/3 of benefit
  • 5-10 years: 2/3 of benefit
  • 10+ years: Full benefit

Employer Termination

  • Full benefit regardless of duration
  • Except Article 80 cases
  • Payment within one week

Non-Entitlement Cases (Article 80)

Employee is not entitled to End of Service if terminated under Article 80 in the following cases:

  • 1.Assault on employer or responsible manager
  • 2.Failure to perform essential work obligations
  • 3.Absence without valid reason for 30+ scattered days or 15+ consecutive days
  • 4.Disclosure of industrial or commercial secrets
  • 5.Committing an act against honor or trust

Calculate Your End of Service Now

Use AqlHR's free calculator to accurately calculate your benefits according to Saudi Labor Law