End of Service Benefits ESB Calculation Resignation or Termination


The end of service benefit can be calculated either during the resignation considering the duration of work in Saudi Arabia. Or also if the employer is terminating the employee. End of Service Benefits (ESB) Calculation in KSA Saudi Arabia. Ending the job needs all the expatriates in the Kingdom of Saudi Arabia about their right to the End of Services and Benefits.

Those people who are working with the company for minimum two-year and they have the right to ask for the End of Service Award or Benefits. In a case of any employee services time less than two years in a company. Then expatriate is not entitled to the certain monetary compensation or End of Service Benefits or Award.
ESB Calculation Termination and resignation
ESB Calculation Termination and resignation

Find and read the article 84 to 88 the Saudi Labor Law in English translations.

Article 84:

Upon the end of the work relation, the employer shall pay the worker an end-of-service award of a half-month wage for each of the first five years and a one-month wage for each of the following years. The end-of-service award shall be calculated on the basis of the last wage and the worker shall be entitled to an end-of-service award for the portions of the year in proportion to the time spent on the job.

Article 85:

If the work relation ends due to the worker’s resignation, he shall, in this case, be entitled to one third of the award after a service of not less than two consecutive years and not more than five years, to two thirds if his service is in excess of five successive years but less than ten years and to the full award if his service amounts to ten or more years.

Article 86:

As an exception to the provision of Article (8) of this Law, it may be agreed that the wage used as a basis for calculating the end-of-service award does not include all or some of the commissions, sales percentages, and similar wage components paid to the worker which are by their nature subject to increase or decrease.

Article 87:

As an exception to the provisions of Article (85) of this Law, the worker shall be entitled to the full award if he leaves the work due to a force majeure beyond his control. A female worker shall likewise be entitled to the full award if she ends her contract within six months from the date of her marriage or three months from the date of giving birth.

Article 88:

Upon the end of the worker’s service, the employer shall pay his wages and settle his entitlements within a maximum period of one week from the date of the end of the contractual relation. If the worker ends the contract, the employer shall settle all his entitlements within a period not exceeding two weeks. The employer may deduct any work-related debt due to him from the worker’s entitlements.

Three cases - End of Service Benefit - ESB

The End of Services Benefits will be calculated in two cases. First, if you're going to resigning to leave the company and second case if the employer is going to terminate you from your job, In both case the End of Service or entitlement is different.

End of Service Benefits ESB
If Employee Resigns from JOB
Years of serviceEntitlementESB AwardPercentage of salary
Less than 2 yearsNoNoNo
2 to 5 years1/3rdHalf Salary16.67%
5 to 10 years2/3rdFully SalaryFirst 5 years = 33.33%
Next 5 years = 66.67%
Above 10 yearsFullFully SalaryFirst 5 years = 50%
Next 5 years = 100%
If Employer Terminates an Employee
Less than 5 yearsFullHalf Salary50%
More than 5 yearsFullFully SalaryFirst 5 years = 50%
Next 5 years = 100%

A. End of Sevice Benefits for Resignation of Employee in Saudi Labor Law. (CASE 1)

Resigned Before Two Years.

In this case, if the employee is working for a company less than two years. He is not entitled to any compensation or End of Service award or Benefits like ESB, % of monthly payment, privilege.

Resigned After Two Years.

An employee leaves or left the job after completion of two years, but less than five years, (2-5years) he is entitled to one-third for of End of Service Benefits award, He will receive percent (%) of half salary of the monthly salary.

Resigned After Five Years.

In this case an employee, they leave the job or resign from the service after completion of five years term, but less than ten years(5-10 years). So as per the ESB calculation, he is entitled to the 2/3rd salary. And per the percentage % of Salary, the employees will receive a full salary.

Resigned after 10 Years.

When an employee has left the job of a company or the company terminates him after the completion of 10 years servicing(10+years) the, he is entitled to full End of Service Benefits Award, As per the percentage (%) of Salary will be his full salary.

B. End of Service Benefits for Termination of Contract of Employee in Saudi Labor Law (Case 2)

Terminate Before Fiver Years:

The employer terminates the Employee of a company before his five years of service, and then he is entitled to half salary of his monthly basic salary.

Terminate After Five Years:

The employer terminates the employee of a company after his five years of services, and then he is entitled to half pay for first five years, and after five years full salary will be calculated on the monthly basic pay.

C. ESB for Women Employee in Saudi Arabia:

Resign within six Months:

When a lady employee resigns from the service within six months of her marriage, then she is entitled to get full compensation of End of Service Benefits.

Leave After 3 Months:

A woman Employ left the job after three months of giving birth to the child, In this case, she is entitled to get full compensation of ESB.
Eligibility Condition and ESB Calculator
Eligibility Condition and ESB Calculator

How to calculate End of Service Benefits?

To calculate the end of service benefits, you can visit this link End of service which are calculation services providing by Saudi labor education. If you don't know how to use, just use our contact us page providing the information and get the answer via email. Or you can post your question in below comments and the author will reply you back.



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HowGear: End of Service Benefits ESB Calculation Resignation or Termination
End of Service Benefits ESB Calculation Resignation or Termination
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