End of Service Benefits (EOSB) in Saudi Arabia – Complete Calculation Guide 2025

End of Service Benefits (EOSB) is one of the most important rights for employees working in Saudi Arabia. Under the Saudi Labour Law 2025, every employee completing service with an organization is entitled to a gratuity payment based on their tenure and last drawn salary. This guide provides a complete overview of EOSB rules, calculation methods, practical examples, and important tips to ensure you receive your rightful dues.

❓ What is EOSB (End of Service Benefits)?

EOSB, also known as “gratuity,” is a lump-sum payment given to employees at the end of their employment. It is mandated by the Saudi Labour Law for all employees working under both fixed-term and unlimited contracts.

• Eligibility: Employees completing at least 2 years of service.
• Non-eligibility: Employees terminated for gross misconduct or those leaving during probation without completing 2 years.

📜 EOSB Rules Under Saudi Labour Law 2025

The new law emphasizes fair and timely payment of EOSB. Key points include:

• Employer must pay EOSB within a reasonable time after contract termination.
• Payment is based on the last drawn salary, including basic salary and certain allowances.
• Partial EOSB is applicable if resignation occurs before 5 years.

Note: Always check your employment contract and HR policies. Some allowances may or may not be included in EOSB calculation.

🧮 How to Calculate EOSB – Official Formula

EOSB is calculated differently based on the duration of service:

• Less than 5 years: Half a month’s salary for each year of service.
• More than 5 years: Half a month’s salary for the first 5 years, then one month’s salary for each additional year.

Formula:
EOSB = (Last drawn monthly salary × 0.5 × Years of service) for first 5 years
+ (Last drawn monthly salary × 1 × Years beyond 5)

Example	Tenure	Last Drawn Salary (SAR)	EOSB Calculation	EOSB Amount (SAR)
1	2 years	5,000	5,000 × 0.5 × 2	5,000
2	6 years	6,000	(6,000 × 0.5 × 5) + (6,000 × 1 × 1)	16,500
3	10 years	7,000	(7,000 × 0.5 × 5) + (7,000 × 1 × 5)	52,500
4	3 years (Resignation)	4,500	4,500 × 0.5 × 3	6,750

⚖️ EOSB for Resignation vs. Termination

The entitlement for End of Service Benefits (EOSB) depends on how your employment ends:

• Resignation: Partial EOSB (⅓ or ⅔) if service is less than 5 years.
• Termination by employer: Full EOSB is granted irrespective of tenure beyond probation.

📄 Notice Period & Final Settlement Connection

• Pending leave salary is added to EOSB.
• Last month’s salary is included.
• Typically, payment is made within 2 weeks to 1 month after clearance.

💡 Tip: Always verify your final settlement details with HR to avoid mistakes.

🌐 How to Check EOSB Online (Qiwa / HRSD)

1. Log in to the Qiwa Portal.
2. Navigate to Employee Services → End of Service Benefits.
3. Enter your details to view the calculated EOSB amount instantly.

💡 Tip: Keep your employment and salary details handy to check your EOSB accurately.

❓ Common Questions (FAQ)

• Do I get EOSB if I resign during probation? No, probation period less than 2 years usually does not qualify.
• How is EOSB calculated for daily or hourly workers? It is calculated based on average monthly earnings.
• Can company deduct money from EOSB? Only legal deductions like loans or advances with agreement.
• What if employer refuses to pay EOSB? File a complaint with HRSD / Ministry of Human Resources.

Conclusion ✅

Every employee in Saudi Arabia should have a clear understanding of their End of Service Benefits (EOSB), as it plays a key role in protecting their employment rights. By knowing the rules, formulas, and legal timelines, you can ensure you receive your rightful dues without delay. Always double-check your EOSB calculation and keep proper documentation for a smooth final settlement.

💡 I hope this guide helps all employees understand their EOSB rights clearly and plan their exit or settlement confidently.

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