End Of Service Benefits Calculation as per Saudi Labor Law

End Of Service Benefits (ESB) Calculation in Saudi Arabia

According to Saudi labor law, If the company gives final exit or terminates the contract then you are entitled to get half of your monthly salary for each of the first five years and one month salary for following years.

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.

Entitlement of EOS 2 years and above

So in your case if your salary is 2000 Riyals per month, then end of service benefit is calculated as below.

First five years = (5 x 2000)/2 = 5000 SR.

Next 2 years = (2 x 2000) = 4000 SR.

Remaining 5 months you need to calculate like below.

Calculate the benefit by day = 2000 SR / 365 days = 5.47 SR

calculate the days for 5 months = 5 months x 30 days per month = 150 days

Multiply the benefit by day by remaining days = 5.47 SR x 150 days = 820.5 SR.