End of Service Calculator Saudi Arabia

End of Service Benefits — also called EOSB, gratuity, or indemnity— are a mandatory lump-sum payment that every employer in Saudi Arabia must pay to an employee when their employment ends. Think of it as Saudi Arabia's version of severance pay, except it is not discretionary: it is required by law, regardless of the reason for leaving.

This matters especially for expatriates. Since foreign workers in Saudi Arabia do not contribute to a pension through GOSI (the national social insurance system), EOSB is the primary financial protection you accumulate during your employment. It is the money you walk away with when your contract ends, you resign, or you are terminated.

EOSB applies to all employees — Saudi nationals and expats alike — in the private sector. The amount depends on two things: your last salary and your length of service. The longer you work for an employer, the more you receive. After 5 years, the rate doubles from half a month's salary per year to a full month's salary per year, which is why many expats try to stay at least 5 years.

If you are terminated by your employer or your contract expires, you receive the full EOSB amount. If you resign, you may receive a reduced amount depending on how long you worked — or nothing at all if you leave before completing 2 years. The rules are defined in Articles 84-86 of the Saudi Labor Law, and your employer cannot reduce or waive them even if your contract says otherwise.

For context: an employee earning 15,000 SAR/month who works 8 years receives 82,500 SAR (roughly $22,000) in EOSB when they leave. That is real money — and it is yours by law.

Enter your monthly basic salary, select whether to include housing allowance, and specify your years and months of service. Then choose how your employment ended - resignation, contract expiry, or termination by the employer. The calculator instantly shows your End of Service Benefits (EOSB) based on Saudi Labor Law.

EOSB Formula

Step-by-Step Calculation

1. Determine your salary base — your last basic salary, plus housing allowance if your contract includes it.
2. Calculate the first 5 years — multiply half a month's salary by the number of years (up to 5).
3. Calculate years beyond 5 — multiply one full month's salary by each additional year.
4. Add both amounts — this is your full EOSB before any resignation reduction.
5. Apply resignation reduction — if you resigned, your entitlement depends on how long you worked (see table below).

End of Service Benefits are mandatory under Saudi Labor Law. Every employer must pay EOSB to an employee whose employment ends, whether the employee is Saudi or an expatriate. The rules are defined in Articles 84, 85, and 86 of the Saudi Labor Law.

Article 84 — Calculation Formula

The employee receives half a month's wage for each of the first five years, and one month's wage for each subsequent year. The award is calculated based on the last wage received. Parts of a year are calculated proportionally.

Article 85 — Resignation Entitlement

When an employee resigns, the EOSB is reduced based on the length of service:

Article 86 — Special Cases

A female employee who resigns within 6 months of marriage or 3 months of childbirth receives full EOSB regardless of service length. An employee who resigns due to force majeure (circumstances beyond their control) also receives the full amount.