End of Service in Saudi Arabia: Complete Expat Guide (2026)
Introduction
End of Service in Saudi Arabia is one of the most critical topics every expat working in the Kingdom must understand. Many expats in Saudi Arabia face confusion, delays, or even disputes when leaving a job—simply because they don’t fully understand how end of service benefits (EOSB) work under Saudi labor law. Based on real expat experience in KSA, knowing your rights before resignation or termination can protect your income, your Iqama status, and your future plans.
This guide explains End of Service in Saudi Arabia step by step, using Saudi-specific rules, real scenarios, and official sources—so you can confidently calculate, claim, and receive what you are legally entitled to.
What Is End of Service in Saudi Arabia?
End of Service in Saudi Arabia refers to the mandatory financial benefit paid to an employee when their employment ends. This applies whether you resign, your contract ends, or your employer terminates you—provided legal conditions are met.
The rules are governed by the Saudi Labor Law, enforced by the Ministry of Human Resources and Social Development. EOSB is calculated based on:
- Basic salary (not total package)
- Length of service
- Reason for leaving (resignation or termination)
Who Is Eligible for End of Service Benefits?
You are eligible for End of Service in Saudi Arabia if:
- You are employed under a registered contract
- Your job falls under Saudi Labor Law
- You have completed at least one year of service
Not eligible:
- Domestic workers (different rules apply)
- Employees dismissed under Article 80 (serious misconduct)
Saudi Labor Law Rules for End of Service
Under Saudi law:
- EOSB is calculated using basic salary only
- Allowances (housing, transport, food) are excluded
- Partial benefits apply in some resignation cases
Your employment details must be properly registered in Absher and Qiwa to avoid disputes.
End of Service Calculation in Saudi Arabia (Examples)
Standard Formula
| Years of Service | EOSB Amount |
|---|---|
| First 5 years | ½ month basic salary per year |
| After 5 years | 1 full month basic salary per year |
Example
- Basic Salary: SAR 5,000
- Service: 7 years
Calculation:
- First 5 years: 5 × (2,500) = SAR 12,500
- Next 2 years: 2 × (5,000) = SAR 10,000
Total EOSB = SAR 22,500
Resignation vs Termination: What Changes?
End of Service in Saudi Arabia differs significantly depending on how your job ends.
If You Resign
- Less than 2 years: ❌ No EOSB
- 2–5 years: ⅓ of total EOSB
- 5–10 years: ⅔ of total EOSB
- 10+ years: 100% EOSB
If Employer Terminates You
- Full EOSB (unless Article 80 applies)
When and How EOSB Must Be Paid
By law:
- EOSB must be paid within 1–2 weeks after final working day
- Payment must be made before final exit visa
- Final settlement includes:
- EOSB
- Unpaid salary
- Unused leave balance
If delayed, you can file a complaint through the MHRSD labor portal.
Official Online End of Service Calculator in Saudi Arabia (HRSD)
Many expats in Saudi Arabia are unaware that the Saudi government provides an official End of Service calculator that anyone can use online. This calculator is issued directly by the Ministry of Human Resources and Social Development, making it the most reliable and legally aligned tool for estimating your EOSB.
Official End of Service Calculator Link
👉 End of Service Benefit Calculator (Official):
https://www.hrsd.gov.sa/en/ministry-services/services/end-service-benefit-calculator
This tool follows Saudi Labor Law exactly, including:
- Resignation vs termination rules
- Length of service thresholds
- Partial vs full entitlement logic
Real-Life Expat Tips & Warnings
Based on real expat experience in KSA:
- Always keep your contract copy
- Screenshot salary transfers
- Check GOSI and Qiwa records regularly
- Never cancel your Iqama before settlement
Many expats lose money simply because they trust verbal promises instead of written records.
Common Mistakes Expats Make
- Resigning before completing 2 years
- Assuming allowances count in EOSB
- Accepting cash without payslip proof
- Not filing labor complaints on time
- Signing final settlement without review
FAQs: End of Service in Saudi Arabia
Is End of Service in Saudi Arabia mandatory for employers?
Yes, End of Service in Saudi Arabia is legally mandatory under Saudi Labor Law for all eligible employees. Any employee who completes at least one full year of service is entitled to end of service benefits (EOSB, unless dismissed for serious misconduct under Article 80. Based on real expat experience in KSA, labor courts strictly enforce this right, and employers cannot waive or deny EOSB through internal policies or verbal agreements.
Does End of Service in Saudi Arabia include housing or transport allowance?
No. End of Service in Saudi Arabia is calculated strictly on basic salary only. Housing allowance, transport allowance, food allowance, overtime, and bonuses are excluded by law. Many expats mistakenly assume their full package is considered, which often leads to disputes. In Saudi Arabia, this rule works differently from some other countries, so always verify your basic salary amount in your contract before calculating EOSB.
Can an employer legally refuse to pay End of Service in Saudi Arabia?
An employer can refuse to pay End of Service in Saudi Arabia only in very specific cases, such as serious misconduct defined under Article 80 of Saudi Labor Law (fraud, assault, repeated violations, etc.). Even then, the employer must prove the violation with evidence. In practice, many employers threaten denial incorrectly, but labor courts usually rule in favor of employees if proper documentation exists.
How long does it take to receive End of Service payment in Saudi Arabia?
In most cases, End of Service in Saudi Arabia must be paid within 7 to 14 days after your last working day. This final settlement typically includes EOSB, unpaid salary, and unused leave balance. Delays beyond this period may be considered a violation of labor law, and employees can escalate the case through official labor dispute channels.
Can I claim End of Service in Saudi Arabia after a final exit visa?
Yes, you can still claim End of Service in Saudi Arabia after final exit, but it becomes significantly harder. Once you leave the Kingdom, follow-ups, hearings, and document verification become complex. Based on real expat experience in KSA, it is strongly advised to settle EOSB before final exit while your Iqama is still active and accessible through Absher and Qiwa systems.
Where can I complain if my End of Service is unpaid or delayed?
If your End of Service in Saudi Arabia is unpaid or delayed, you can file an official labor complaint through the Ministry of Human Resources and Social Development labor dispute system. The complaint process is online, structured, and legally binding. Many expats successfully recover EOSB by submitting contracts, salary proofs, and official EOSB calculations during mediation and court review.
Is there an official End of Service in Saudi Arabia calculator?
Yes. The Saudi government provides an official End of Service in Saudi Arabia calculator through the Ministry of Human Resources and Social Development. This calculator follows Saudi Labor Law exactly and helps estimate EOSB based on basic salary, service duration, and reason for leaving.
👉 Official calculator: https://www.hrsd.gov.sa/en/ministry-services/services/end-service-benefit-calculator
Many expats use this tool as a reference during disputes, and labor offices often accept its calculations as legally aligned estimates.
Does resignation affect End of Service in Saudi Arabia benefits?
Yes. Resignation directly affects End of Service in Saudi Arabia benefits. Employees who resign before completing two years of service usually receive no EOSB. Partial benefits apply between 2–10 years, while full benefits are paid after 10 years. This rule is one of the most misunderstood areas among expats, making it critical to calculate EOSB before submitting a resignation.
Is End of Service in Saudi Arabia taxable?
Currently, End of Service in Saudi Arabia is not subject to income tax, as Saudi Arabia does not impose personal income tax on salaries. However, employees should verify tax rules in their home country, as some countries may require declaration of EOSB received abroad.
What documents are needed to claim End of Service in Saudi Arabia?
To claim End of Service in Saudi Arabia, you should keep:
- Employment contract
- Salary transfer records
- Iqama details
- Last working day confirmation
- EOSB calculation (preferably from official calculator)
Having these documents greatly improves your chances of quick settlement or successful dispute resolution.
