Saudi Arabia End of Service Calculator 2026

How is end of service calculated in Saudi Arabia in 2026?

Your daily rate is your last wage × 12 ÷ 365. The last wage includes basic salary plus any fixed regular allowances (such as housing and transport). The number of days per year depends on whether you resigned or were terminated and how many years you served. Terminated employees earn 15 days per year for years 2–5, 30 days per year for years 5–10, and 30 days per year beyond 10. Resigned employees earn 10 days per year for years 2–5, 20 days per year for years 5–10, and 30 days per year beyond 10.

Does Saudi Arabia EOSB include housing or transport allowance?

Yes — if those allowances are fixed and regular. Under Article 84, EOSB is calculated on the 'last wage', which Saudi Labour Law defines as basic salary plus fixed regular allowances such as housing and transport allowances. Variable pay, commissions, and performance bonuses are excluded. This is different from UAE, which uses basic salary only.

What is the minimum service to get EOSB in Saudi Arabia?

You must complete at least 2 full years of continuous service. If you leave before 2 years, you receive nothing — whether you resigned or were terminated.

What is the maximum end of service in Saudi Arabia?

The maximum is 24 months of last wage, regardless of how many years you have worked.

Does resigning affect my Saudi Arabia EOSB?

Yes — significantly for the first 10 years. If you resign with 2–10 years of service, you receive a reduced rate compared to termination. Only after 10 years of service does resignation give you the same full entitlement as termination.

What if my fixed-term contract expired naturally in Saudi Arabia?

Natural expiry of a fixed-term contract is treated as termination by the employer under Saudi Labour Law, so you receive the full termination rate — not the reduced resignation rate.

Is Saudi Arabia EOSB calculated on basic salary or total salary?

It is calculated on your 'last wage' under Article 84, which includes basic salary plus fixed regular allowances such as housing and transport. Variable pay and bonuses are excluded. This is an important difference from UAE, which uses basic salary only — many employees in KSA are shortchanged by employers who apply the UAE rule incorrectly.

When must the employer pay EOSB in Saudi Arabia?

The employer must pay all final entitlements including EOSB within the timeframe specified under Saudi Labour Law when the employment contract ends. Delays can be reported to the Ministry of Human Resources and Social Development.