End of Service Calculator

What Are End of Service Benefits in Saudi Arabia?

End of service benefits, also called the end of service award or EOSB, are a lump sum every private-sector employer in the Kingdom must pay when employment ends. The payment belongs to Saudi and expatriate employees alike, and for most expatriates it is the largest single sum they take home from their time in Saudi Arabia, because non-Saudis are not covered by the pension branch of social insurance. The amount depends on only three things: your last wage, how long you served, and how the job ended.

That simplicity is deceptive. The two mistakes that cost people money are entering the basic salary instead of the full wage, and measuring the service period wrong. An end of service calculator saudi workers can rely on must therefore get the wage definition right and apply the resignation shares exactly, which is what the calculator above does. That is the standard this end of service benefits calculator Saudi Arabia page is built to: every rate named, every step shown, and every result checkable against the law itself.

How to Calculate End of Service in KSA: The Article 84 Formula

Article 84 of the Saudi Labour Law states the formula in one paragraph. The employer pays half a month's wage for each year of the first five years of service, and one full month's wage for each year after that. The last wage received is the basis, and any fraction of a year is paid in proportion to the time actually worked. This section explains how to calculate end of service in Saudi Arabia step by step.

First 5 years: wage × 0.5 × years
After 5 years: wage × 1 × years beyond five
Part of a year: counted proportionally, months as twelfths of a year

To calculate end of service KSA by hand, work through these steps in order. First, find your last wage, meaning basic salary plus every fixed allowance in your contract. Second, measure your service from the first working day to the last, including fractions. Third, apply the two rates. Fourth, if you resigned, apply the Article 85 share from the table below. The calculator follows the same order and shows every step, so you can compare its breakdown with your employer's final settlement line by line.

Worked Example: SAR 6,000 and 7 Years of Service

Ahmed worked in Riyadh for 7 years. His last monthly wage was SAR 6,000, counting basic salary plus his housing allowance. His contract ended normally, so he receives the full award:

If Ahmed had resigned after the same 7 years, Article 85 would cut the award to two thirds: 27,000 × 2/3 = SAR 18,000. Two more cases show how the table works in practice. A worker on SAR 12,000 who serves 12 years and is dismissed receives 12,000 × 0.5 × 5 = SAR 30,000 for the first five years plus 12,000 × 7 = SAR 84,000 for the rest, a total of SAR 114,000. A worker on SAR 8,000 who resigns after exactly 3 years has a full award of 8,000 × 0.5 × 3 = SAR 12,000, but the one-third resignation share leaves SAR 4,000. All three cases can be repeated in the calculator above.

The Resignation Rules (Article 85) and the Article 87 Exceptions

When the employer ends the contract, or a fixed-term contract simply runs out, the full award is paid at any length of service. Resignation is different. Article 85 pays only a share of the award, and the share grows with service:

Article 87 then restores the full award to a resigning employee in two situations: when the worker leaves because of force majeure, a circumstance beyond their control, and when a female worker ends her contract within six months of her marriage or within three months of giving birth, under the conditions the article sets. Article 81 covers a third route to the full award: an employee who leaves without notice because the employer broke the contract, for example by not paying wages, keeps all their rights. The calculator offers the force majeure and marriage and childbirth cases as options, because they change the result completely.

Which Wage Does the Calculator Use?

Article 84 calculates the award on the last wage, and the Labour Law defines wage broadly: the basic wage plus all amounts due to the worker, including fixed allowances and benefits in kind. In practice that means basic salary plus housing, transport and food allowances and regular cost-of-living increases. A contract that pays SAR 4,500 basic plus SAR 1,500 housing gives a wage of SAR 6,000 for the award, not SAR 4,500, and employers who calculate on the basic figure alone underpay by a quarter.

There are two honest exceptions. Article 86 allows the contract to exclude commissions, sales percentages and similar payments that rise and fall, if the agreement says so clearly. One-off discretionary bonuses are also normally outside the wage. If a large part of your pay is variable, the last wage is usually taken as an average of recent months, so ask your HR department in writing which months and which components they used before you accept a settlement figure.

Did the 2025 Amendments Change the Calculation?

No. The Labour Law amendments approved in 2024 and in force since 19 February 2025 (Royal Decree M/44) changed the rules around the award without touching its formula. Resignation now has a formal procedure and counts as accepted if the employer does not respond within 30 days. The maximum probation period rose from 90 to 180 days. Notice on a monthly-paid indefinite contract is now 60 days from the employer and 30 days from the employee, and maternity leave rose to 12 weeks on full pay. Articles 84 to 88, the provisions that fix the award itself, were not changed, so every figure on this page still follows the classic calculation.

One amendment does matter for expatriates. Non-Saudi workers on indefinite contracts are now treated as holding one-year renewable agreements, which keeps their contracts fixed-term in practice. Since the 2025 wording defines resignation as a worker ending a fixed-term contract before it expires, with notice, the Article 85 fractions apply to expatriate resignations in the ordinary way.

Fixed-Term and Indefinite Contracts

The reason the contract ends matters as much as its length. A fixed-term contract that runs its full course pays the full award, whatever the service length, because nobody resigned and nobody was dismissed. An indefinite contract ended by the employer also pays the full award. The reduction in Article 85 bites only when the worker chooses to leave early. The exception is dismissal for the serious misconduct grounds listed in Article 80, such as assault, major financial damage or long unexplained absence, where the award itself can be lost. This calculator does not model Article 80 cases: if your termination letter cites Article 80, get advice before relying on any figure here.

Probation deserves a separate warning. No award is payable for service that ends during probation, and since the 2025 amendments probation can run to 180 days. A worker dismissed in month five of a six-month probation therefore receives nothing under Article 84, however the contract is described.

Government Employees: A Different System

This end of service calculator Saudi Arabia page follows the Labour Law, and the Labour Law covers the private sector. Government employees are not part of that calculation. They fall under the civil service system and the pension rules, where end of service is handled through a separate set of regulations and, for longer service, a monthly pension instead of a Labour Law lump sum. A government employee who enters their salary here will get a number the law does not give them.

The dividing line is the employer, not the job title. Teachers in private schools are covered by the Labour Law and can use this calculator directly, because their employer is a private establishment. Teachers in government schools are civil servants and are not covered. The same split applies to nurses, engineers and administrators: private employer means Labour Law, government employer means the civil service system. If you are unsure which side you are on, your contract and your Qiwa record will show it.

Cross-Check Your Result on Qiwa

Qiwa, the Ministry of Human Resources and Social Development platform, publishes its own End-of-Service Reward calculator under Tools and Calculators. It asks for the same four inputs this page uses: contract type, reason for termination, total monthly salary and years of service. Running both calculators takes two minutes and is the fastest way to catch a mistake before you sign a final settlement.

Calcotia is not affiliated with Qiwa, the Ministry or any employer, and this page is an independent estimation tool. If the two figures differ, check the wage first. Qiwa calls the figure total salary, and it means the same thing as the last wage here: basic pay plus fixed allowances. A difference of exactly one allowance almost always explains the gap. The Ministry also publishes its own end of service calculator, and the same check applies there. People also search for this kind of tool as esb computation or esb calculation saudi arabia, but whatever the name, the formula being checked is Articles 84 and 85.

Your Final Settlement Has More Than the Award

The award is usually the biggest line in a final settlement, but it is not the only one. Unused annual leave is paid separately: the leave entitlement is 21 days a year, rising to 30 days after five years with the same employer, and any balance left at the end is converted to cash on top of the award. Notice pay is separate again when the required notice was not given. And compensation for unlawful dismissal under Article 77 is separate from all of it: 15 days' wage per year of service on an indefinite contract, the wage for the remaining term on a fixed-term contract, and never less than two months' wage. None of these are in the calculator above, so a settlement that matches this page exactly can still be short on leave or notice.

Deadlines matter too. Under Article 88 the employer must settle everything within one week when the employer ends the contract, and within two weeks when the employee ends it. The employer may deduct genuine work-related debts from the settlement, but not fines or charges the law does not allow. If the deadline passes with no payment, the complaint route runs through the Ministry and the labour courts, and the calculation on this page is the document to take with you.

Special Cases the Calculator Does Not Decide for You

• Unpaid leave: long unpaid leave is commonly left out of the service period employers record, because service counts time actually in employment. If you took extended unpaid leave, ask HR how many service days they have on file and enter dates that give that period.
• Domestic workers: household workers such as drivers and domestic helpers sit under a separate domestic worker regulation and the Musaned platform, not under Articles 84 and 85, so this calculator does not cover them.
• Salary changes: the award always uses the last wage, never an average of past salaries, so a late raise increases the whole award and a late cut reduces it.
• Leaving without notice under Article 81: an employee who walks out because the employer failed to pay wages, assigned essentially different work without written consent, or failed in safety duties keeps the full award. Choose the full-award option here and keep the evidence.
• Variable pay: commissions and piece rates that genuinely vary can be excluded only where the contract clearly says so. If your contract is silent, the full actual wage is the base.
• Part-year service: fractions of a year are paid proportionally, so six extra months count as half a year at the rate for that period, not as a rounded-down zero.

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