End of Service Benefits: Saudi Labor Law 2025

The Saudi Labor Law has determined the end of service benefits that the worker is entitled to and the method of calculating it according to the worker’s length of service, his monthly salary, and the reason for terminating the employment contract.

End of service Benefits in Saudi Labor Law

Chapter Four of the Saudi Labor Law includes an end of service benefits for Saudi and non-Saudi workers, which is paid by the employer for the worker’s period of service with him. The value of the benefits is calculated according to the number of years and the worker’s last salary. The calculation of the benefits also depends on the reason for the termination of the employment contract. The worker is entitled to part of the benefits if he resigns within 10 years of work, while he is entitled to the full benefits if his period of service exceeds 10 years. ^[1]

See More: Labor Office Contact Number | Labour Office Service Inquiry |  Labor Law New Working Hours | Labor Law end of Service Calculator | Labor Law Article 81 | Labour Law Amendments

How to calculate End of Service Benefits in Saudi Arabia

The end of service benefits in Saudi Arabia can be calculated for a worker whose service has ended at the end of the employment contract based on his monthly salary and length of service as follows:

Calculating End of Service Benefits for the First Five Years

The end of service benefits for the first five years can be calculated according to the following calculation:

• End of service benefits for the first 5 years = (current monthly salary / 2) * 5 years

Calculating End of Service Benefits for Years Exceeding 5 Years

The end of service benefits for years exceeding 5 years can be calculated according to the following calculation:

• End of service benefits for years exceeding 5 years = (current monthly salary) * number of additional years of service

Calculating End of Service Benefits for Months and Days

The end of service benefits for months and days can be calculated according to the following calculation:

• Calculating the end of service benefits for months and days for the first five years:
• Benefits for months = (monthly salary / 2) * number of months
• Benefits for days = (monthly salary / 2) / number of days
• Calculating the end of service benefits for months and days for the first five years:
• Benefits for months = Monthly salary * Number of months
• Benefits for days = Monthly salary / Number of days

Calculating the Total End of Service Benefits

You can calculate the total end of service benefits according to the following calculation:

• Total End of service benefits = End of service benefits for the first 5 years + End of service benefits for years exceeding 5 years + End of service benefits for months and days.

Calculating End of Service Benefits according Saudi Labor Law upon Resignation

A worker whose service ends due to his resignation is entitled to an end of service benefits according to the Saudi Labor Law as follows:

• If the worker resigns after a service of not less than two years and not more than five years, he is entitled to a third of the value of the benefits.
• If the worker resigns after a service of not less than 5 years and not more than 10 years, he is entitled to two-thirds of the value of the benefits.
• If the worker resigns after a service of 10 years or more, he is entitled to the full value of the benefits.

End of Service Benefits for Women in Saudi Labor Law

The Labor Law in Saudi Arabia addressed the value of the end of service benefits for working women in Article 87, where the woman is entitled to the full value of the end of service benefits if she terminates her contract within six months of the date of her marriage or within three months of the date of her birth.

Who is Entitled to an End of Service Benefits in Saudi Arabia

A Saudi or non-Saudi worker is entitled to an end of service benefits that is paid by the employer upon the termination of the employment contract and is calculated based on the length of service of the worker. This benefits is considered insurance for the worker’s future after the end of his work and a story for him from unemployment and assistance in old age.

When is End of Service Benefits Paid in Saudi Arabia

End of service benefits is paid in Saudi Arabia according to what is specified by the labor system as follows:

• If the worker’s service ends, the worker’s wages are paid and his retirement rights are settled within a week from the date of the end of work.
• If the worker’s service ends at his request, the end of service benefits is paid within a period not exceeding two weeks.

Cases of non-entitlement to End of Service Benefits According Saudi labor law

The worker is not entitled to the end of service benefits upon termination of the contract for the following reasons:

• If the worker assaults the employer or his supervisor at work during or because of work.
• If the worker does not fulfill his obligations according to the employment contract.
• The worker commits acts that violate trust.
• If the worker commits acts that cause material loss to the employer.
• If it is proven that the worker resorted to forgery to obtain the employment contract.
• If the worker is humiliated under probation.
• If the worker is absent from work for more than 30 days without reason during the year or more than 15 consecutive days, provided that the contract warning precedes the worker’s warning.
• If the worker uses his position to obtain personal gains.
• If the worker leaks the secrets of the work he works in.

Conclusion

End of service benefits is a legitimate right for the worker according to the Saudi Labor Law, it is calculated on the basis of the salary, length of service, and the reason for the termination of the employment contract. The employer does not have the right to deprive the worker of it except in some cases specified by the Labor Law.