End of Service Award – Saudi Arabia

end of service award

T

hings you need to know before leaving Saudi Arabia

The employer shall pay the employee an end of service award of a half-month salary for each of the first five years and a one-month wage for each of the following years. The end-of-service award are calculated on the basis of the last salary and the employee are entitled to end-of-service benefits based on the portion he spent on the job.

End of Service Award (EOSB)

  1. If the employee’s resigned and his service was less than 2 years, the employee is entitled to the end of service benefits.
  2. If the employee’s resigned and his service was two years and up to 5 years, the employee are entitled to 1/3 of the end of service benefits.
  3. If the employee’s resigned and his service was more than 5 years but less than 10 years, the employee is entitled to 2/3 of the end of service benefit.
  4. If  employee’s resigned and his service was 10 years or more, the employee is entitled to the full end of service benefit.

End of service Award5. When it comes to female employee, within (6) months of her marriage the employee is entitled to an end of service benefit – equal to the wage of ½ a month for each year of the first 5 years and the salary of a month for each year after 5 years.

6. If work relation ends due to force majeure, the employee is entitled to an end of service benefit equal to the salary of ½ a month for each year of the first five years and the salary of a month for each year after 5 years.

7. The end of service benefits of employee and rights on the employer in the case of termination of the employment contract, and it is obligatory on the employer to pay the employee at the end of the contract of employment, whether it is a fixed-term contract or indefinite. It’s easy way to estimate end of service benefits expense, the maturity date of the reward, and how to calculate it according to the rules of the Labor Law.

You can calculate your End of Service Award here

Things to remember:

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Source: Ministry of Labor KSA

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