End-of-service benefit (EOSB)

Calculate the end-of-service benefit under the Saudi Labor Law for every type of employment termination.

Preparing the tool…

Official sources

The final reference is the official text and your business's account with the competent authority.

What does this calculator calculate?

The calculator estimates the end-of-service benefit for a private-sector employee under the Saudi Labor Law. You enter the start date, the end date, the actual monthly wage and the reason for ending employment, and it shows you:

  • The service period in years, months and days.
  • The full benefit split into two parts: the first five years, and the years beyond them.
  • The share of the benefit that is due, depending on the reason the service ended.
  • The estimated amount due in SAR, with a text summary of the calculation.

The calculation runs inside your browser, and no date or wage you enter is sent to our servers.

How to use the end-of-service calculator

  1. Enter the start date as stated in the contract.
  2. Enter the end date. The calculator fills in today's date automatically, so change it to the last actual working day.
  3. Enter the actual monthly wage: the basic wage plus fixed allowances.
  4. Choose the reason for ending employment from the list: termination by the employer, expiry of a fixed-term contract, employee resignation, force majeure, female employee within 6 months of marriage, female employee within 3 months of childbirth.
  5. The result appears instantly with every change: the amount due, the benefit breakdown, the share due, and important notes below it.

How the end-of-service benefit is calculated

The calculation has three steps:

  1. Service period in years: the number of days from the start date to the end date ÷ 365. Fractions of a year are counted in days, without adding a day and without deducting unpaid leave.
  2. Full benefit:
    • Half a month's wage for each of the first five years.
    • A full month's wage for each year after the first five.
  3. Share due by reason:
    • Termination by the employer, expiry of a fixed-term contract, or the cases in Article 87 (force majeure, the female employee's marriage, and childbirth): the full benefit.
    • Employee resignation (Article 85): nothing if the service is less than two years, one third of the benefit from two to less than five years, two thirds from five to less than ten years, and the full benefit for ten years or more.

The formula: Amount due = (min(years, 5) × wage × ½ + (years − 5) × wage) × share due, and the second part is added only if the service exceeds five years.

Worked example: termination by the employer after 7 years

An employee started on 1 March 2018, and the service ended on 1 March 2025 through termination by the employer. The actual wage is 8,000 SAR.

ItemValue
Service period7 years (2,557 days)
Years in the calculator: 2,557 ÷ 3657.0055 years
First five years: 5 × 8,000 × ½20,000.00
Beyond five years: 2.0055 × 8,00016,043.84
Full benefit36,043.84
Share due100%
Amount due (SAR)36,043.84

Why 7.0055 years and not 7 years? Because the period includes two leap days (29 February 2020 and 2024), so it has 2,557 days, not 2,555, and the calculator divides by 365.

Worked example: resignation

Case one: the same employee (7 years, wage 8,000) resigned instead of having the contract terminated. The service is between five and ten years, so two thirds of the benefit is due.

ItemAmount (SAR)
Full benefit36,043.84
Share due67% (two thirds)
Amount due: 36,043.84 × ⅔24,029.22

Case two: a female employee started on 1 January 2021 and resigned on 1 January 2024, with a wage of 6,000 SAR. Her service is 3 years (1,095 days).

ItemAmount (SAR)
First five years: 3 × 6,000 × ½9,000.00
Share due33% (one third)
Amount due: 9,000 × ⅓3,000.00

Before you rely on the result

  • Wage: enter the last actual wage, meaning the basic wage plus the fixed allowances due, not the basic wage alone.
  • Dismissal under Article 80 of the Saudi Labor Law gives the employee no entitlement to the benefit. This case is not in the list.
  • Article 87 cases receive the full benefit provided the stated period applies (six months from marriage or three months from childbirth). The calculator does not check this.
  • Fractions of a year are calculated as days ÷ 365, so the result may differ slightly from another calculation based on months.

The calculator gives an estimate, and its result may differ from the official calculation or the decision of the competent authority. Once you know the amount, you can write it out in words with the tafqeet tool.

Frequently asked questions

How do I calculate the end-of-service benefit?
Multiply half the actual monthly wage by the number of years of service up to five years, then add a full month's wage for each year after the first five. Fractions of a year are calculated as days ÷ 365. Then apply the share due according to the reason the service ended.
How much end-of-service benefit does an employee get after resigning?
It depends on the length of service: nothing if it is less than two years, one third of the benefit from two to less than five years, two thirds from five to less than ten years, and the full benefit for ten years or more.
Is an employee entitled to the benefit after resigning within two years?
No. On resignation, the employee is not entitled to the benefit if the service is less than two years, and the calculator shows the amount due as zero in this case.
Is the end-of-service benefit calculated on the basic salary only?
No. It is calculated on the last actual wage, which is the basic wage plus the fixed allowances due, as actual wage is defined in the Saudi Labor Law.
Is the full benefit due when a fixed-term contract expires?
Yes. Expiry of the contract term, termination by the employer in cases other than Article 80, and the Article 87 cases all receive the full benefit in the calculator.
Do you store the data I enter?
No. The calculation runs inside your browser, and no date or wage is sent to our servers or stored.

Content last reviewed: 2026-10-26

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