Saudi Labor Law
Section Four: End-of-Service Award
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.
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.
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.
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.
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.
Below is the screen shot of the Ministry of Labor, end of service award calculator (please click the screen shot image to the direct link of the Saudi Ministry of Labor ESB calculator). You may fill the details of your employment such as: Type of Contract, Reason for End of Service, Salary and Duration of Service.
Click the “amount” and check the figures of your end of service award on top of the “green calculator.”
For more relevant info about how to compute your End of Service Award or ESB, please click here>>>> to QSaudi.com website. Quintessentially Saudi – QSaudi.com is a multi-portal website dedicated to provide you important and useful information about Saudi Arabia.