End of Contract Benefits Saudi Arabia — Complete Guide 2026

The Complete End-of-Contract Checklist

When employment ends in Saudi Arabia you may be entitled to some or all of the following depending on your circumstances. Work through each item carefully before signing any final settlement document.

1. End-of-Service Benefit (EOSB)

EOSB is typically the largest single payment owed at end of contract. It is calculated on your basic salary and total years of service.

• Half month basic salary per year for first 5 years
• Full month basic salary per year for service beyond 5 years
• Partial years are calculated proportionally
• Calculated on basic salary — not total salary including allowances

2. Final Month Salary

Your full salary for the final month of work must be paid regardless of how employment ended. If you worked only part of the final month, salary is calculated proportionally on a daily basis.

• Daily rate = Total monthly salary ÷ 30
• Partial month pay = Daily rate × days worked in final month
• All regular allowances included — housing, transport etc.
• Must be paid within 7 days of employment ending

3. Unused Annual Leave Encashment

Any annual leave days you have accrued but not taken must be paid out in cash on termination. This cannot be forfeited — unused leave has a monetary value that must be settled.

• Leave salary calculated on total salary — not just basic
• Daily rate = Total monthly salary ÷ 30
• Leave encashment = Daily rate × unused leave days
• Applies whether you resigned, were terminated or contract expired

4. Notice Period Pay

Notice period pay depends on how employment ended:

• Employer terminated without giving notice — employer owes you notice period salary (30 or 60 days depending on service length)
• You resigned without serving full notice — employer may deduct the unserved notice period from your final settlement
• Both parties waived notice by mutual agreement — no notice pay in either direction
• Contract expired naturally — no notice period applies — contract ended on its agreed date

5. Return Air Ticket

If your employment contract includes a return air ticket benefit, you are entitled to this when employment ends — regardless of whether you resigned or were terminated. Key points:

• The ticket is to your home country — the country stated in your contract
• If employer does not provide the ticket, they must pay the equivalent cost
• Check your contract specifically — some contracts limit this to termination only
• Dependents' tickets may also be included — check your contract carefully
• If you choose to travel to a different destination, employer typically pays only the home country equivalent cost

6. Article 77 Compensation (Arbitrary Dismissal)

If you were terminated without a valid legal reason you are additionally entitled to compensation under Article 77 — on top of all other entitlements.

• Up to 2 months salary per year of service
• Amount determined by HRSD or Labour Court based on circumstances
• Applies only to termination — not resignation or contract expiry
• Cannot be waived by contract clause

→ Full Guide: Article 77 Compensation

Payment Deadline — 7 Days

All end-of-contract payments must be made within 7 days of employment ending. This is a strict legal requirement. If any payment is not received within 7 days:

• File an HRSD complaint immediately at hrsd.gov.sa
• Do not leave Saudi Arabia before all payments are confirmed in your bank account
• Do not sign any release document before receiving full payment
• HRSD treats salary and settlement delays very seriously — act quickly

How to Verify Your Final Settlement Is Correct

1. Calculate your EOSB using our EOSB Calculator
2. Calculate your unused leave encashment separately
3. Add your final month salary pro-rated if applicable
4. Add notice period pay if owed
5. Add air ticket value if applicable
6. Compare your total to what the employer's settlement letter shows
7. If there is any discrepancy — raise it in writing before signing anything

Frequently Asked Questions