Saudi Arabia End of Service Benefit Calculator

What this calculator does

Calculates your Saudi Arabia end-of-service benefit (EOSB) under Articles 84 and 85 of the Labor Law, accounting for whether you're leaving via termination or resignation, since the two are treated very differently.

Who this is for

Employees in Saudi Arabia planning a resignation or nearing contract end, or anyone estimating their EOSB entitlement as part of broader financial or career planning.

How this calculator works

Under Article 84 of the Saudi Labor Law, end-of-service benefit accrues at half a month's basic wage for each of the first five years of service, then a full month's wage for each year beyond five, with a pro-rata award for partial years. If you resign, Article 85 reduces the payout based on tenure: nothing under 2 years, one-third from 2–5 years, two-thirds from 5–10 years, and the full amount beyond 10 years. Termination by the employer (outside serious-misconduct cases under Article 80) generally entitles you to the full accrued amount regardless of tenure.

Worked example

SAR 10,000 basic monthly salary, 8 years of service: full entitlement = (10,000 × 0.5 × 5 years) + (10,000 × 1 × 3 remaining years) = 25,000 + 30,000 = SAR 55,000 full accrued amount. If leaving via termination, the full SAR 55,000 applies. If leaving via resignation instead at the same 8 years (falling in the 5-10 year band, two-thirds factor): 55,000 × 2/3 ≈ SAR 36,667 — nearly SAR 18,333 less, purely based on how the employment ended.

A second example at 15 years of service, same SAR 10,000 basic salary: full entitlement = (10,000 × 0.5 × 5) + (10,000 × 1 × 10) = 25,000 + 100,000 = SAR 125,000. At this tenure, resignation falls in the "beyond 10 years" band, meaning the resignation payout equals the full SAR 125,000 too — the resignation penalty only applies to the first 10 years of service, disappearing entirely once you've passed that mark.

Why EOSB Matters More for Expats Than It Might Look

EOSB isn't just a nice-to-have bonus for expatriate employees in Saudi Arabia — it's effectively their only mandatory end-of-employment financial safety net. Under GOSI (General Organization for Social Insurance), expatriate employees contribute nothing from their own salary and receive only occupational hazards coverage (injury/death from workplace accidents), funded entirely by a 2% employer contribution. Expats are excluded from GOSI's pension branch and SANED unemployment insurance entirely — benefits that Saudi nationals receive through a combined 21.5-23.5% contribution split between employer and employee.

This is why getting your EOSB calculation right matters more for an expat than the number alone suggests: unlike a Saudi national who has both a GOSI pension building in the background and EOSB, an expat's EOSB is essentially the only structured financial payout their years of Saudi employment will generate through the legal system, aside from whatever they've saved independently.

EOSB growth by year of service

Common mistakes

• Assuming resignation always pays the full amount. Article 85 reduces the payout on resignation unless you've completed at least 10 years — termination and resignation are not treated the same.
• Using total salary instead of basic salary. Only basic wage (plus certain fixed allowances) counts toward the calculation — housing allowances, bonuses, and commissions are typically excluded.
• Rounding down partial years. The law entitles you to a pro-rata award for fractions of a year worked — stopping at full years only understates the true entitlement.
• Not checking Article 80 grounds before assuming full termination entitlement. Termination for documented serious misconduct under Article 80 can forfeit EOSB entirely — the full-amount rule applies to ordinary terminations, not misconduct dismissals.
• Assuming GOSI provides a pension safety net alongside EOSB. Expatriate employees are excluded from GOSI's pension and unemployment branches entirely — EOSB is effectively the only structured end-of-employment payout expats receive, unlike Saudi nationals who have both.
• Forgetting the resignation penalty disappears after 10 years. Article 85's reduced payout only applies within the first 10 years of service — resign after that point and you're entitled to the full accrued amount, same as termination.

Related calculators

Frequently Asked Questions