Question 1

Do I get end-of-service benefit if I resign before 2 years?

Accepted Answer

No. Under Saudi Labor Law, an employee who resigns with less than 2 years of continuous service is not entitled to any end-of-service benefit. From 2 years onward, a partial benefit begins to apply.

Question 2

Does unpaid leave count toward my years of service?

Accepted Answer

Generally, periods of authorized unpaid leave are not counted as service time for the gratuity. Confirm exactly how your employer treats unpaid leave, as practices vary.

Question 3

Is the end-of-service benefit the same as my GOSI pension?

Accepted Answer

No. The end-of-service benefit is a lump sum paid by your employer at the end of your employment. GOSI pension is a separate social insurance benefit funded by monthly contributions.

Question 4

Is end-of-service benefit taxed in Saudi Arabia?

Accepted Answer

Saudi Arabia does not levy personal income tax on wages, so the end-of-service benefit is generally paid without income-tax deduction.

Question 5

Which wage is used to calculate EOSB — basic only or basic plus housing?

Accepted Answer

The default under the law is the last basic wage, but some contracts define the gratuity wage to include allowances such as housing. Verify which basis your contract specifies.

Question 6

How is the end-of-service benefit calculated in Saudi Arabia?

Accepted Answer

Half a month's wage for each of the first five years of service and one full month's wage for each year after that, prorated for partial years. If you resign, a reduction applies: nothing under 2 years, one third from 2 to 5 years, two thirds from 5 to 10 years, and the full amount from 10 years.

Saudi End of Service Benefit Calculator

Three steps, exactly as the law defines them

Base entitlement

Separation adjustment

Wage basis

What you're entitled to, by separation type

Frequently asked questions

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