NEW
Updated: May 2026
Saudi Unified Employment Contract 2025-2026: Impact on EOSB
The Ministry of Human Resources and Social Development (HRSD) has implemented Phase 2 of the Unified Employment Contract. This update standardizes contract terms across all sectors and introduces digital record-keeping that directly affects EOSB calculation accuracy. Employers must now maintain digital records of actual wages and service periods, reducing disputes over EOSB entitlements.
Key Impact on EOSB: Digital wage records ensure accurate actual wage calculation. Employees can now verify their EOSB entitlement through the unified portal.
Source: HRSD Official →
UPDATE
Updated: April 2026
GOSI Reform 2025-2026: What Employers and Employees Must Know
The General Organization for Social Insurance (GOSI) has introduced reforms affecting contribution calculations and benefit structures. While GOSI and EOSB are separate entitlements, the reforms impact how employers budget for end-of-service benefits and how employees understand their total compensation package.
Key Impact on EOSB: GOSI contributions remain separate from EOSB. However, the reform increases transparency in total employment costs, helping employees better understand their full benefits package.
Source: GOSI Official →
GUIDE
Updated: March 2026
Wage Protection System (WPS) and EOSB: Understanding the Connection
The Wage Protection System (WPS) requires all Saudi employers to pay wages through approved banks. This system creates an auditable trail of actual wage payments, which serves as the basis for EOSB calculation under Article 87. WPS compliance ensures that the actual wage used for EOSB calculation is accurately documented.
Key Impact on EOSB: WPS records provide verifiable proof of actual wages, reducing disputes in EOSB calculations. Employees should ensure their wages are registered in WPS.
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REFERENCE
Updated: January 2026
Saudi Labor Law Articles 84, 85 & 87: Complete Reference
A comprehensive reference guide to the three key articles governing EOSB calculation in Saudi Arabia. Article 84 defines the calculation formula, Article 85 covers resignation rules, and Article 87 defines actual wage. Understanding these articles is essential for both employees and employers.
Article 84: First 5 years = 0.5 month/year, After 5 years = 1 month/year
Article 85: Resignation reduces EOSB based on service length
Article 87: Actual wage includes basic salary + fixed allowances
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