End of Service Benefits (EOSB)
مكافأة نهاية الخدمة
📖 Definition
End of Service Benefits (EOSB) is a mandatory lump-sum payment to employees upon termination in Saudi Arabia. Calculated as half month's salary per year for the first 5 years, and one month per year thereafter.
In everyday Saudi accounting work, end of service benefits (eosb) matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.
📖 التعريف بالعربية
مكافأة نهاية الخدمة هي دفعة إلزامية مقطوعة للموظف عند انتهاء خدمته في السعودية. تُحسب بنصف شهر عن كل سنة في الخمس سنوات الأولى، وشهر عن كل سنة بعد ذلك.
💡 Example
An employee with SAR 10,000 salary and 8 years of service: (5×5,000) + (3×10,000) = SAR 55,000 EOSB.
موظف براتب 10,000 ريال و8 سنوات خدمة: (5×5,000) + (3×10,000) = 55,000 ريال مكافأة نهاية خدمة.
When this term matters
Invoices
Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.
Reports
Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.
Compliance
Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.
Automate End of Service Benefits (EOSB) with Qeemah
Qeemah accounting software handles end of service benefits (eosb) automatically, ensuring ZATCA compliance and reducing manual work.