Saudi Arabia End-of-Service Benefit Calculator
Calculate your statutory EOSB payout in SAR under Saudi Labor Law Articles 84 & 85 for resignation, contract termination, or non-renewal.
End of Service Benefit (ESB) Calculator — Saudi Arabia
Saudi Labour Law (Royal Decree M/51)Select & enter details
For employees in the private sector. Saudi nationals and expatriates alike.
Estimated entitlement
EligibleSAR 287,466
- Salary used
- SAR 50,000
- Completed years
- 8 yrs
- Partial year
- 91 days
- Base entitlement
- SAR 287,466
- Resignation factor
- 100% — full amount
Year-by-year breakdown
| Period | Years | Rate | Amount |
|---|---|---|---|
| First 5 yrs | 5 yrs | ½ month / yr | 125,000 |
| Beyond 5 yrs | 3 yrs | 1 month / yr | 150,000 |
| Beyond 5 yrs · part year | 3 mths | 1 month / yr | 12,466 |
| Total | 287,466 |
How Saudi Arabia calculates it
How Saudi Arabia end of service benefit (ESB) is calculated
Last actual wage — basic pay plus fixed allowances (housing, transport), regular commissions and contractual bonuses.
No minimum service for the award itself. If you resign, at least 2 years of service is needed.
Under 2 years: nothing · 2–5 years: one third · 5–10 years: two thirds · 10+ years: full. Full award on termination or contract expiry, for a female worker leaving within 6 months of marriage or 3 months of childbirth (Art. 87), and for leaving on employer default (Art. 81) or force majeure.
No cap. Governed by Articles 84–88 of the Labour Law.
Frequently asked · Saudi Arabia
Which wage is used to calculate gratuity in Saudi Arabia: basic or total salary?
The wage used is your last actual wage: basic pay plus fixed allowances such as housing and transport, and regular commissions or contractual bonuses.
Is gratuity payable on resignation in Saudi Arabia?
Yes, but reduced by length of service. You receive nothing under two years, one third from two to five years, two thirds from five to ten years, and the full amount from ten years. The full amount is paid if you leave for employer default or force majeure, or if you are a female worker who leaves within six months of marriage or three months of childbirth.
Do Saudi nationals get end-of-service benefit?
Yes. The end-of-service award applies to Saudi nationals and expatriates alike. Saudi nationals are also covered by GOSI social insurance, which is separate: the award is a lump sum the employer owes directly, and GOSI is a monthly contribution to the state.
Why do companies need an actuarial valuation of gratuity / End of Service Benefit?
Gratuity is a long-term obligation, and accounting standards such as IAS 19 (and Ind AS 19 or AS 15 in India) require employers to measure it with actuarial methods. A valuation uses assumptions about future salary growth, employee turnover, mortality and discount rates, and it applies the projected unit credit method. For this reason it differs from the statutory calculator above, which shows the amount due today. An actuarial valuation supports the company's financial statements, the audit and funding decisions.
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Statutory EOSB online calculators provide general individual estimates. For company balance sheet provisions, SOCPA compliance, and Big 4 audit defense, consult our certified actuaries.
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