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End of Service Benefits Calculator
Works out end-of-service gratuity from final wage, length of service and how the employment ends — resignation or employer termination, which are treated differently under the Saudi Labour Law. Use it per employee, or to sanity-check the liability you are accruing.
In short
End-of-service benefit in Saudi Arabia accrues at half a month's wage for each of the first five years of service and a full month's wage for each year after that, based on the final wage. Where the employee resigns, entitlement is reduced on a sliding scale according to length of service.
Employment details
The wage used for EOSB normally includes basic salary plus regular allowances.
Resignation reduces entitlement on a sliding scale.
SAR 28,000
Payable after 6.0 years of service
How it breaks down
What this costs you monthly
This liability accrues every month the employee works, whether or not you provision for it. At this wage and service length that is roughly SAR 389 per month, per employee. Companies that do not accrue it get an unbudgeted cost on separation — usually several at once, when a project ends.
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We track this accrual monthly for payroll clients
So the liability is visible long before anyone resigns, and final settlements are calculated to law rather than negotiated at the door.
Payroll outsourcingRates last verified:
End-of-service entitlement can differ in specific circumstances set out in the Saudi Labour Law — including termination during probation, certain resignations by female employees, and end of a fixed-term contract. This calculator covers the two most common cases.
This is an indicative estimate for planning, not a formal calculation or legal advice. Statutory rates and government fees change. Verify against GOSI, Ministry of Human Resources and Social Development, Qiwa and Absher / Muqeem, or or ask us to confirm.
Common questions
How is end of service calculated in Saudi Arabia?
Half a month's wage for each of the first five years of service, and a full month's wage for each year after that, based on the final wage. Where the employee resigns rather than being terminated, entitlement is reduced on a sliding scale by length of service.
Does an employee who resigns get end-of-service pay?
It depends on length of service. Under two years there is generally no entitlement on resignation; from two to under five years it is one third of the award; from five to under ten years, two thirds; and at ten years or more, the full award.
Related services
Payroll Outsourcing Services in Saudi Arabia
Payroll outsourcing in Saudi Arabia covers monthly salary processing, Wage Protection System filing, GOSI reconciliation, payslip distribution and end-of-service accrual. Because WPS compares your wage file against contract and GOSI records, payroll and compliance cannot be run separately — SCPL runs them as one process.