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End of Service Benefits in Kingdom of Saudi Arabia (KSA)

End of Service Rewards Calculator in Saudi Arabia 2022

End of Service Benefits in Kingdom of Saudi Arabia (KSA)-SaudiExpatriate.com

End of Service Benefits in Saudi means that any employee or worker who is working in Kingdom of Saudi Arabia (KSA) get some cash after ending their service and will be entitled for End of Service benefits as per Saudi Labor Law. If an employee is working for a company and when he resigns or gets terminated he will get his full and final settlement from his Company which is known as End of service benefits.

End of Service benefits in Saudi according to Saudi Labor law is if the company gives a final exit or terminates and employee contract then as per Saudi Labor Law you’re entitled to get half of your monthly for first 5 year and 1 month salary for following years:

Note: For End of Service (EOS) Entitlement Employee must work for 2 years minimum if any one resign before two years and serve one month notice so he will only get his entitled leaves and salary NO EOS.

End of Service (EOS) benefits all depends on the time period an employee works in a company and based on that he will be awarded cash benefits towards ending his services from the company.

Eligibility for End of Service Benefits

To be eligible for EOSB, an expatriate must have completed a minimum of one year of service with their employer. The benefits are calculated based on the employee’s basic salary, length of service, and the date of termination of the contract. It is important to note that the eligibility criteria may vary based on the expatriate’s nationality, the type of visa held, and the conditions specified in their employment contract.

End of Service Benefits in Kingdom of Saudi Arabia (KSA)-SaudiExpatriate.com

End of Service Benefits in Saudi

Employees leave the company in two situations, either they will resign or will get terminated from the company. EOS benefits will applicable in both the situation as follows:

In Case of Resignation:

Scenario 1:

As per the Article 85 of Saudi Labor Law, If an employee resigns in less than 2 years of work then he will not be entitled for End of Service (EOS) benefits.
To get these benefits he should have to complete minimum 2 years of employment.

Scenario 2:

As per the Article 85 of Saudi Labor Law, If an employee stays and works in the company for more than 2 years and less than 5 years. He will be entitles to
get 1/3rd of his EOS benefits. EOS Benefits will be half of his Salary in this case.

Scenario 3:

If an Employee complete 5 years in a company then he will be entitled to get 2/3rd of his End of Service Benefits
along with Full Salary %

Scenario 4:

If an Employee complete his 1o years of service and then resigns, he will be entitled for Full End of Service
Benefits Awards with % of Full Salary

Calculate Your End of Service Benefits Now!

In Case of Termination:

Scenario 1:

If an Employee gets terminated by his employer or company before 5 years of his service then he will be entitles for Half Salary

Scenario 2:

If an Employee get terminated after completion of 5 years, then he will be entitled for Full Salary

Women Employees in Saudi Arabia:

  • If a Female employee resigns from a Job in Saudi Arabia within 6 months of her marraige, she will be eligible for End of Service Benefits
  • If a Female Employee resigns after 3 months of giving birth, then also she will be eligible for End of Service Benefits

Labor Education of Saudi Arabia has also provided a Calculator where you can submit the details to get the estimated amount of End of Service benefits in KSA

End of Service Calculator KSA

Type of Contract:

– Select Type of Contract “Fixed Time” or “Unlimited Period
– Select the End of Service Reason from the drop-down

For “Fixed Time”, select any End of Service Reason from the drop-down:

  • Expiration of contract terms, or the parties have agreed to terminate the contract
  • Termination of the contract by Employer
  • Termination of the contract by the employer for one of the terms and conditions stated in Article (80).
  • Leaving work as a result of force majeure
  • The worker terminates the labor contract within six months into the marriage contract or three months into birth
  • The worker leaves work for one of the conditions stated in Article (81)
  • Termination of the contract by the worker or has quit the work for other reasons not stated in Article (81).

For “Unlimited Period”, select any End of Service Reason from the drop-down:

  • The Worker and Employer agree to terminate the contract
  • Termination of the contract by the employer
  • Termination of the contract by the employer for one of the terms and conditions stated in Article (80)
  • Leaving work as a result of force majeure
  • The worker terminates the labor contract within six months into the marriage contract or three months into birth
  • The worker leaves work for one of the conditions stated in Article (81)
  • The worker leaves work without submitting his/her resignation, other than the conditions stated in Article (81)
  • The resignation of a worker

Enter You Basic Salary

Enter Duration of Service in Years, You can also Enter duration in month or days (optional)

Click on the Green ‘=’ button to get the End of Service Amount

Taxation of End of Service Benefits

EOSB received by expatriates is subject to tax in Saudi Arabia. The tax rate depends on the expatriate’s nationality and the conditions specified in their employment contract. It is important to seek professional advice from a tax expert to understand the tax implications of EOSB.

End of Service Benefits is an important aspect for expatriates to understand and plan for their future financial stability. It is calculated based on the employee’s basic salary and length of service, and must be paid by the employer within two weeks of the employee’s last working day. EOSB is subject to tax in Saudi Arabia, and it is important to seek professional advice from a tax expert to understand the tax implications.

If you feel this article is helpful, please share it with your family & friends living in Saudi Arabia and looking forward for Full End of Service benefits

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