Saudi End of Service Benefit Calculator (ESB)

Labor & Careers Verified daily benchmark data

💼 End of Service Benefit (ESB) Calculator

Last Monthly Wage (SAR) Include basic salary and regular fixed allowances

Reason for Leaving Contract grounds govern statutory tier modifiers

Completed Years of Service Full uninterrupted calendar years

Additional Months (0 to 11) Prorated fractionally by months/12

Estimated Net Gratuity Due

SAR 30,000.00

Total Service Tenure: 7.00 Years (7 yrs, 0 mos)

First 5 Years Component (0.5 mo/yr): SAR 25,000.00

Year 6 Onward Component (1.0 mo/yr): SAR 20,000.00

Unadjusted Full Benefit: SAR 45,000.00

Statutory Tier Applied: Two Thirds (2/3) for resignation (5 to 10 yrs)

About End of Service Benefit (ESB) Calculator

Under the Saudi Labor Law, every worker completing an employment contract in the Kingdom of Saudi Arabia is entitled to an End of Service Benefit, commonly termed severance or gratuity. Governed by Articles 84 and 85 of Royal Decree No. M/51, this statutory payout is calculated using your last drawn total wage, which includes your basic salary along with regular contractual allowances such as housing and transportation.

The exact gratuity amount depends on two primary elements: your total duration of continuous service and the legal grounds for contract conclusion. When an employment term ends through natural contract expiry or termination by the employer without cause, Article 84 awards a half month of wages for each of your first five years, and a full month of wages for every subsequent year. When an employee chooses to resign, Article 85 applies tiered reductions for tenures under ten years. This calculator evaluates both scenarios with full pro rata accuracy down to the month.

How It Works & Key Standards

First 5 Years of Service: Half month (0.5) of your total monthly wage for each completed year.
Year 6 Onward: Full month (1.0) of your total monthly wage for each completed year.
Partial Year Calculation: Fractional years are calculated proportionally based on completed months divided by 12.
Resignation Tiers: If you resign, tenures under 2 years receive zero; 2 to under 5 years receive one third (1/3); 5 to under 10 years receive two thirds (2/3); 10 years or more receive the full 100% gratuity.
Termination or Completion: Employees leaving due to contract completion or employer termination receive 100% full gratuity across all qualifying years.

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Frequently Asked Questions

Which salary components are included when calculating end of service benefits?

Under Saudi Labor Law, the calculation uses your final gross wage. This includes your basic salary plus fixed, recurring allowances such as housing, transportation, and guaranteed living stipends that were part of your regular monthly compensation.

Do I receive any gratuity if I resign before completing two years of service?

No. Under Article 85 of the Saudi Labor Law, an employee who voluntarily resigns before completing two consecutive years of service receives zero end of service compensation.

How are fractional or incomplete years of employment calculated?

Fractional years are calculated proportionally on a monthly basis. Each additional month contributes one twelfth of the applicable yearly gratuity entitlement for that tenure period.

Can an employer withhold end of service benefits in Saudi Arabia?

An employer may only withhold gratuity under the strict conditions specified in Article 80 of the Saudi Labor Law, such as proven physical assault, gross fraud, or intentional property damage. Any other deduction requires an order from the Labor Court.