How Saudi end of service (EOS) is calculated
Under Saudi Labour Law Article 84, many private-sector employees in Saudi Arabia (KSA) receive an end-of-service benefit when employment ends. Awards are based on basic salary in SAR (ر.س) — not housing, transport, or USD/AED amounts.
- First 5 years:half a month's wage per year of service
- After 5 years:one full month's wage per year
- Resignation: often one-third before 5 years, two-thirds before 10 years, full award after 10 years (termination by employer typically receives full award sooner)
- Generally no EOS for service under two years
Example (SAR 8,000 basic salary, 6 years, termination): First five years = 5 × 0.5 × 8,000 = SAR 20,000. Sixth year = 1 × 8,000. Estimated base award ≈ SAR 28,000 before any resignation reduction.
GOSI, Qiwa, and HRSD
GOSI (General Organization for Social Insurance) records insurable wages that often align with basic pay used in EOS disputes. Qiwa documents contracts and transfers. The Ministry of Human Resources (HRSD) oversees labour complaints. Employers in Riyadh, Jeddah, Dammam, and across the Kingdom should reconcile EOS with contract terms and platform records.
For UAE gratuity (AED / MOHRE), use our UAE Gratuity Calculator. Arabic version: حاسبة نهاية الخدمة (عربي) →.