Quick Summary
- Final settlement includes EOSB, last salary, pending leave pay and air ticket if applicable
- Must be paid within 7 days of your last working day — this is Saudi law
- Never sign a settlement receipt until all money is physically in your account
- Employer can only deduct amounts you legally owe — not vague "damages"
- Underpayment can be disputed at HRSD even after you leave Saudi Arabia
- Calculate your entitlement first using our Final Settlement Calculator
What Is Final Settlement in Saudi Arabia?
Final settlement is the complete package of all payments your employer owes you when your employment ends. It is not just EOSB — it is everything combined that is due to you on your last working day.
Many expats make the critical mistake of only focusing on EOSB and forgetting other components of their final settlement. This guide breaks down every single component so you know exactly what to expect and what to demand.
What Is Included in Final Settlement?
1. End of Service Benefits (EOSB)
The gratuity calculated on your basic salary based on years of service. First 5 years: 15 days per year. After 5 years: 30 days per year. The rate varies based on whether you resigned or were terminated. Read full EOSB guide →
2. Final Month Salary (Pro-rated)
Your salary for any days worked in your final partial month. Calculated as daily wage × days worked. If your last day is the 20th of the month, you are owed 20 days of salary for that month.
3. Pending Leave Salary (Unused Annual Leave)
All unused annual leave days must be paid out in cash at your daily rate. You cannot forfeit unused leave — it must be compensated. Daily rate = total monthly salary ÷ 30 × leave days.
4. Notice Period Pay (if applicable)
If your employer terminates you without notice, they must pay your salary for the full notice period (30 or 60 days depending on service). This is paid in addition to EOSB — not instead of it.
5. Air Ticket / Repatriation Allowance
If your employment contract includes a repatriation air ticket to your home country, this must be provided or its cash equivalent paid. Check your Qiwa contract for the exact terms of this benefit.
6. Unpaid Overtime (if applicable)
Any documented overtime hours worked but not paid during employment must be included in your final settlement. Keep records of overtime worked — timesheets, emails, any written records.
Worked Example — Complete Final Settlement
Let us calculate a real example. Suppose you have: Basic salary SAR 5,000, housing allowance SAR 2,000, transport SAR 500. Total SAR 7,500. 5 years service. Terminated by employer. 15 pending leave days. No notice served by employer.
Calculate Your Full Final Settlement
Enter your details and get your complete final settlement breakdown in seconds — EOSB, notice period, leave and air ticket all calculated automatically.
Open Final Settlement CalculatorThe 7-Day Payment Rule
Saudi Labour Law requires your employer to pay your complete final settlement within 7 days of your last working day. This is not a guideline — it is a legal requirement.
If your employer delays beyond 7 days without a valid reason, they are in breach of Saudi Labour Law and you have the right to file a complaint at HRSD. The Labour Court can order the employer to pay the full amount plus additional compensation for the delay.
What Can Your Employer Legally Deduct?
Employers cannot deduct arbitrary amounts from your final settlement. Saudi Labour Law strictly limits what can be deducted. Legal deductions include:
- Notice period salary if you resigned without serving notice
- Salary advances or loans you took from the company — with documentary proof
- Damages for proven loss or theft directly caused by you — requires documentation and often a Labour Court judgment
- GOSI contributions if applicable
- Any amounts you agreed to in your employment contract — with written evidence
What employers cannot legally deduct:
- Vague "training costs" without a specific written agreement signed before training
- Client complaints or lost business — unless proven negligence with documentation
- Notice period if the employer asked you to leave immediately
- EOSB itself — this cannot be deducted except under specific Article 80 conditions
- Any amount not supported by written documentation
What to Do If Your Employer Underpays
Calculate What You Are Owed
Use our Final Settlement Calculator to get the exact figure. Have this number ready before any discussion with HR.
Request in Writing
Send a formal email to HR and your direct manager stating the amount you calculated and requesting the difference. Keep a copy of everything.
File an HRSD Complaint
If ignored, file a complaint at hrsd.gov.sa or visit the nearest HRSD office. Include your calculation, contract and payslips as evidence.
HRSD Mediation
HRSD will call both parties to mediation. Most cases are resolved here within 2–4 weeks. If not resolved, it moves to the Labour Court.
Labour Court
If mediation fails, the Labour Court will hear the case and issue a legally binding judgment. The court can order full payment plus compensation for delay.
Documents to Keep for Final Settlement Evidence
- Original employment contract (Arabic and English versions)
- All payslips — especially the last 3 months
- Any offer letter or salary increment letters
- Leave records and leave balance statements
- Written resignation letter or termination letter
- Any written communication about your settlement from HR
- Bank statements showing salary deposits
- Screenshot of your Qiwa contract showing basic salary
Frequently Asked Questions
I signed the clearance paper already but was underpaid. Can I still claim?
It becomes much harder but not impossible. If you signed under duress or without understanding what you signed, you may still have grounds for a complaint. File at HRSD immediately and explain the circumstances. Act fast — the one-year time limit applies from your last working day.
My employer says they will pay after I return to my home country. Should I trust this?
No. Once you leave Saudi Arabia, collecting money from a former employer becomes extremely difficult. Insist on payment before your Final Exit. If they refuse, file a complaint at HRSD before processing your Final Exit.
Can the employer pay settlement in instalments?
Only with your written agreement. Saudi law requires full payment within 7 days. An employer cannot unilaterally decide to pay in instalments. If they ask to pay in instalments, get it in writing with specific dates — and even then, understand that enforcement from abroad is difficult.
Does final settlement differ for resignation vs termination?
The main difference is in EOSB — resignation gets a reduced EOSB based on service length while termination always gets full EOSB. The other components — pending leave, final salary, air ticket — are the same regardless of how employment ended.
What if my employer went bankrupt? Can I still get my settlement?
Employee wages and end of service benefits are a priority debt in Saudi insolvency law — meaning workers are paid before other creditors. File a claim with HRSD immediately if your employer declares bankruptcy or closes down.
Final Settlement Dispute With Your Employer?
If your employer is underpaying, delaying or pressuring you to sign before paying — book a personal consultation. Get clear guidance on exactly what you are owed and how to claim it, based on 20 years of Saudi Arabia experience.