Calculate your End of Service Benefits instantly — free, accurate and based on Saudi Labour Law Article 84. Works for resignation, termination and end of contract.
Saudi Labour Law — Article 84
Important Note on Basic Salary
EOSB is calculated on basic salary only — not on housing allowance, transport allowance or other benefits. If your offer letter shows a total package, enter only the basic salary portion.
End of Service Benefits (EOSB), also called gratuity, is a payment that every expat worker in Saudi Arabia is entitled to receive when their employment ends. It is governed by Saudi Labour Law Article 84 and applies to all workers on unlimited and fixed-term contracts.
Daily Wage = Basic Monthly Salary ÷ 30
First 5 years: Daily Wage × 15 × Years
After 5 years: (Daily Wage × 15 × 5) + (Daily Wage × 30 × remaining years)
| Situation | Service Period | EOSB Rate |
|---|---|---|
| Termination / End of Contract | Any period | Full EOSB |
| Resignation | Less than 2 years | No EOSB |
| Resignation | 2 to 5 years | 1/3 of EOSB |
| Resignation | 5 to 10 years | 2/3 of EOSB |
| Resignation | 10+ years | Full EOSB |
Only your basic salary is used to calculate EOSB. The following are NOT included:
Basic Salary: SAR 5,000
Service: 7 years
Reason: Termination
Daily Wage = 5000 ÷ 30
= SAR 166.67/day
First 5 years = 166.67 × 15 × 5
= SAR 12,500
Next 2 years = 166.67 × 30 × 2
= SAR 10,000
Total EOSB
SAR 22,500
Under Article 84, employer can reduce or cancel EOSB only if the worker is terminated for disciplinary reasons under Article 80, which includes:
Normal termination, redundancy or company closure do NOT allow reduction of EOSB.
Most common questions about End of Service Benefits in Saudi Arabia.
EOSB (End of Service Benefits) is a gratuity payment that every worker in Saudi Arabia is entitled to receive when their employment ends. It is calculated based on your basic salary and years of service under Saudi Labour Law Article 84. It applies to both Saudi nationals and expat workers.
Yes, but the amount depends on how long you worked: Less than 2 years = no EOSB. 2 to 5 years = 1/3 of full EOSB. 5 to 10 years = 2/3 of full EOSB. 10+ years = full EOSB. If you are terminated, you always receive full EOSB regardless of service length.
EOSB is calculated on basic salary only. Housing allowance, transport allowance, food allowance, bonuses and overtime are not included in the EOSB calculation. Always check your Qiwa contract to confirm what your official basic salary is.
Saudi Labour Law requires employers to pay all final entitlements including EOSB within 7 days of the employment contract ending. If the employer delays payment, they are liable for additional compensation. You can file a complaint through HRSD or Qiwa if payment is delayed.
Employers can only deduct from EOSB amounts that are legally owed — such as outstanding loans from the company or proven damages caused by the employee. Employers cannot deduct EOSB as a penalty for normal resignation. Any deduction requires clear written documentation and agreement from the employee.
If your employer refuses to pay EOSB, you can file a complaint through the HRSD website (hrsd.gov.sa) or through the Qiwa platform. The Labour Court can order the employer to pay plus additional compensation. Keep all documentation — contract, payslips, and any written communication about your final settlement.
Saudi Arabia does not have personal income tax, so EOSB is not taxed in Saudi Arabia. However, depending on your home country's tax laws, you may need to declare EOSB as income when you return home. Consult a tax advisor in your home country for guidance.
EOSB begins accumulating from your first day of employment including probation. However, if employment ends during probation (first 90 or 180 days), different rules may apply. If the employer terminates during probation, they may not owe EOSB for that short period but must still pay any agreed amounts in the contract.
Read our complete guide on EOSB rules, what employers get wrong and how to claim your full entitlement.