Saudi End of Service Calculator (EOSB) 2026
Calculate your Saudi Arabia end-of-service benefit (EOSB) for resignation or termination, per Saudi Labor Law.
| Full entitlement (before resignation reduction) | — |
|---|---|
| Resignation band applied | — |
| Final EOSB | — |
In short
Saudi end-of-service benefit is half a month's wage for each of the first five years and a full month's wage per year after that. On resignation the employee receives one third after 2–5 years, two thirds after 5–10 years and the full amount after 10 years; termination by the employer pays the full amount.
Who this is for: Employees in Saudi Arabia leaving a job, and HR teams settling end-of-service benefit under the Labor Law.
How Saudi end-of-service benefit (EOSB) is calculated
Under Saudi Labor Law, EOSB is calculated as:
- Half a month's wage for each of the first 5 years of service.
- One full month's wage for each year beyond 5.
If the employer ends the contract (without fault on the employee's part), the employee receives the full entitlement above. If the employee resigns, the entitlement is reduced:
- Under 2 years of service: no EOSB
- 2 to under 5 years: 1/3 of the full entitlement
- 5 to under 10 years: 2/3 of the full entitlement
- 10 years or more: full entitlement
See also: Saudi Overtime Calculator.
Assumptions
- Half a month's wage per year for the first five years, one month per year thereafter, pro-rated for part years.
- On resignation: nothing under 2 years, one third for 2–5 years, two thirds for 5–10 years, full after 10; termination pays in full.
- The wage you enter is used as the basis; allowances are not separated out.
Worked examples
First 5 years: 5,000 × 5 = SAR 25,000
Remaining 2 years: 10,000 × 2 = SAR 20,000
Full EOSB = SAR 45,000 (paid in full — terminated by employer)
Full entitlement: 4,000 × 4 = SAR 16,000
Resignation band (2–5 years) = 1/3
EOSB paid = SAR 5,333
Frequently asked questions
Does resignation always reduce EOSB in Saudi Arabia?
Yes, under the standard reduction bands, unless you have completed 10 or more years of service, in which case you receive the full entitlement even on resignation.
What wage is EOSB based on?
Typically the last basic wage plus any regular, fixed allowances stated in your contract. Confirm the exact wage definition used by your employer.
Are there exceptions to the resignation reduction?
Some circumstances (for example specific end-of-contract situations under Article 87) may entitle an employee to the full amount even on resignation — check your specific situation with an HR/legal advisor.
Is EOSB calculated on basic or total salary?
On the last wage, which under the Labor Law includes basic pay plus regular allowances such as housing and transport paid as part of the wage.
What happens to EOSB when the employee is on a fixed-term contract?
The same accrual applies; non-renewal at the end of the term is treated as termination, paying the full accrued amount.
Related calculators
See all Saudi Arabia calculators → · All free online calculators
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