End of Service Calculator for Saudi Arabia (KSA) & UAE

Calculate your end of service benefits (EOSB), Saudi gratuity, or final settlement for Saudi Arabia 🇸🇦 and UAE 🇦🇪. Compare resignation and termination scenarios instantly.

Quick answer: EOSB (End of Service Benefit) is the gratuity a Saudi employer pays when employment ends: half a month's wage for each of the first five years, then a full month's wage for each year after. Resigning reduces it under Article 85.

🇦🇪 Working in the UAE? Use our dedicated UAE Gratuity Calculator (Decree-Law 33/2021) with AED salary breakdown and zero resignation cuts.

Where do you work?

Last Total Gross Salary (SAR)

SAR

Start Date

End Date

Why are you leaving?

This tool is for estimation purposes only and does not constitute legal advice. Calculations adhere to KSA Labor Law & UAE Decree-Law 33/2021.

What is Gratuity (EOSB) in Saudi Arabia?

Gratuity (also called End of Service Benefits - EOSB or مكافأة نهاية الخدمة in Arabic) is a lump-sum payment made by employers to employees when their employment ends in Saudi Arabia or the UAE.

In Saudi Arabia, gratuity is governed by Article 84 and Article 85 of the Saudi Labor Law. The amount depends on:

Length of service - How many years you worked
Reason for leaving - Termination by employer vs. resignation
Wage - Last monthly wage (whether allowances count depends on your contract)

💡 Basic or gross? Whether housing and transport allowances count toward Saudi EOSB depends on how your contract defines the wage and whether those allowances are fixed, regular payments. Calculate both figures and compare. See our gratuity guide for details.

How is Gratuity Calculated in Saudi Arabia (KSA)?

🇸🇦 KSA Gratuity Formula (Article 84 & 85)

Based on Article 84 of the Saudi Labor Law, employees terminated by the employer are entitled to:

First 5 Years

Half a month's salary for each year of service

After 5 Years

One full month's salary for each additional year

Example Calculation (Termination by Employer):

Employee worked 7 years with basic salary of 10,000 SAR/month

• First 5 years: 5 × (10,000 ÷ 2) = 25,000 SAR

• Next 2 years: 2 × 10,000 = 20,000 SAR

Total Gratuity = 45,000 SAR

Resignation Rules (Article 85)

If you resign voluntarily (quit your job), your gratuity entitlement is reduced:

Less than 2 years 0% (Nothing)

2 to 5 years 33% (One-third)

5 to 10 years 67% (Two-thirds)

10+ years 100% (Full amount)

Saudi Gratuity Examples (SAR 10,000 Monthly Wage)

Years of service	Terminated / contract ended	Resigned
1 year	SAR 5,000	SAR 0
3 years	SAR 15,000	SAR 5,000
5 years	SAR 25,000	SAR 16,666.67
7 years	SAR 45,000	SAR 30,000
10 years	SAR 75,000	SAR 75,000
15 years	SAR 125,000	SAR 125,000

🇦🇪 UAE Gratuity Calculation (Federal Decree-Law 33/2021)

UAE gratuity is calculated differently based on Federal Decree-Law No. 33 of 2021:

First 5 Years

21 days' salary for each year

After 5 Years

30 days' salary for each additional year

⚠️ Maximum cap: Total gratuity cannot exceed 2 years' basic salary in the UAE.

Frequently Asked Questions (FAQ)

What is EOSB meaning in salary?

EOSB stands for End of Service Benefits, commonly known as gratuity or termination indemnity. It's a mandatory payment employers must make to employees when their employment ends, based on the last monthly wage multiplied by years of service.

Is gratuity calculated on basic salary or gross salary in KSA?

It depends on your contract. Article 84 refers to "the wage"; whether housing and transport allowances are included depends on how your contract defines the wage and whether those allowances are fixed, regular payments. Calculate both basic-only and basic-plus-allowances figures before accepting a settlement.

Do I get gratuity if I resign in Saudi Arabia?

Yes, but it's reduced. If you resign in KSA: 0-2 years = nothing, 2-5 years = 1/3 of gratuity, 5-10 years = 2/3 of gratuity, 10+ years = full gratuity. This is specified in Article 85 of the Saudi Labor Law.

How is gratuity calculated if I worked 3 years in Saudi Arabia?

For 3 years: Termination = 3 × (basic salary ÷ 2) = 1.5 months' salary. Resignation = 1.5 months × 33% = 0.5 months' salary. Example: If your basic salary is 10,000 SAR, termination gratuity = 15,000 SAR, resignation gratuity = 5,000 SAR.

Is gratuity taxable in Saudi Arabia?

No, gratuity (EOSB) is not taxable in Saudi Arabia. There is no personal income tax in KSA, so the full gratuity amount you receive is yours to keep without any deductions.

When should I receive my gratuity payment in KSA?

Under Article 88 of the Saudi Labor Law, the employer must pay within one week of the end of employment when the employer ends the contract, and within two weeks when the employee resigns. If delayed, employees can file a complaint with the Ministry of Human Resources and Social Development (HRSD).

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