EOSB Frequently Asked Questions

End of Service Benefits (EOSB) is a gratuity payment that employers in Saudi Arabia must pay to employees when their employment ends. It is governed by Articles 84, 85, and 87 of the Saudi Labor Law. The amount depends on the employee's final salary, years of service, and the reason for separation. EOSB is a statutory right for all employees working under the Saudi Labor Law, including expats.

EOSB is calculated using this formula under Article 84:

• First 5 years: Half a month's salary per year (0.5 × monthly wage × years)
• After 5 years: One month's salary per year (1.0 × monthly wage × years)

The calculation uses the "actual wage" as defined in Article 87, which includes basic salary plus fixed allowances. The total is then adjusted based on the reason for separation (resignation, termination, contract expiry, etc.).

Yes, but the amount depends on your years of service under Article 85:

• Less than 2 years: 0% of full EOSB
• 2-5 years: One-third (33.33%) of full EOSB
• 5-10 years: Two-thirds (66.67%) of full EOSB
• 10+ years: 100% of full EOSB

Note: If you resign under Article 81 (due to employer's breach of contract), you are entitled to 100% of EOSB regardless of service length.

For definite (fixed-term) contracts, EOSB is calculated based on the actual service period. If the contract expires or is not renewed, you receive 100% of your EOSB entitlement. For indefinite contracts, EOSB is calculated the same way, but the rules for resignation and termination may differ slightly. The key difference is that indefinite contracts require notice periods for termination, while definite contracts end automatically.

Under Article 87, "actual wage" includes:

• Basic salary
• Fixed allowances (housing, transportation, etc.)
• Regular commissions and bonuses

It does NOT include: overtime pay, one-time bonuses, profit-sharing, or benefits in kind (like company car or phone).

Yes, under Article 80 of the Saudi Labor Law, an employer can terminate an employee without EOSB if the employee commits gross misconduct, such as: assaulting the employer, failing to perform duties, disclosing company secrets, or being absent without valid reason. However, the employer must prove the misconduct, and the employee has the right to challenge the termination before the labor authorities.

For part-time employees, EOSB is calculated proportionally based on the actual hours worked compared to full-time hours. For seasonal workers, EOSB is calculated based on the actual service period during the season. The same formula (Article 84) applies, but the wage is adjusted proportionally. Our calculator supports part-time and seasonal work calculations.

Under Saudi Labor Law, EOSB is considered a priority debt in case of bankruptcy. Employees have the right to claim their EOSB from the company's assets before other creditors. The Ministry of Human Resources and Social Development (HRSD) can also intervene to protect employee rights. In some cases, the government's Wage Protection System (WPS) may provide additional safeguards.

No, EOSB and GOSI benefits are separate. EOSB is a gratuity paid by the employer under the Saudi Labor Law. GOSI (General Organization for Social Insurance) is a government-run social insurance program that provides unemployment benefits, pensions, and work injury compensation. Employees contribute to GOSI through monthly deductions, while EOSB is fully funded by the employer. You are entitled to both EOSB and GOSI benefits independently.

If you disagree with your employer's EOSB calculation, you can:

1. First, request a detailed breakdown from your employer
2. Use our calculator to verify the amount independently
3. File a complaint with the Ministry of Human Resources and Social Development (HRSD)
4. Seek mediation through the Labor Dispute Settlement Committee
5. If necessary, pursue the case through the labor courts

Our calculator can help you verify your EOSB entitlement before filing a dispute.