EOSB Calculator

EOSB Calculator is an essential tool in Saudi Arabia for employees and employers to accurately estimate End-of-Service Benefits (EOSB). It calculates the compensation an employee is entitled to upon contract termination based on their monthly salary, total years of service, and type of employment contract. 

Using official platforms like Qiwa, the EOSB Calculator ensures transparency, helps avoid disputes, and simplifies understanding of the Saudi Labor Law EOSB calculation rules. This tool is especially useful for resignations, terminations, and probationary contracts.

How to Use EOSB Calculator in Saudi Arabia?

1. Determine the Length of Service

The first step in calculating End-of-Service Benefits (EOSB) is to determine the number of years the employee has worked for the company. In this example, we will explain how to calculate the EOSB for an employee who completed 7 years of service.

Read also: Discover Saudi Labor Law End of Service Calculator – Etqan

2. EOSB Calculation Method

According to Article 84 of the Saudi Labor Law, EOSB is calculated as follows:

  • For each of the first five years: The employee is entitled to half a month’s salary for each year.
  • For each year beyond the fifth: The employee is entitled to one full month’s salary for each additional year.

3. Example Calculation

Let’s assume the employee’s monthly salary is 8,000 SAR, and they want to calculate their EOSB after 7 years of service.

  • First five years:
    • 5 years × 0.5 month = 2.5 months
    • 2.5 months × 8,000 SAR = 20,000 SAR
  • Sixth and seventh years:
    • 2 years × 1 month = 2 months
    • 2 months × 8,000 SAR = 16,000 SAR
EOSB Calculator
EOSB Calculator

4. Total End-of-Service Benefits

By adding the amounts for both periods:

  • 20,000 SAR (for the first 5 years) + 16,000 SAR (for the next 2 years)
    = 36,000 SAR

Therefore, the EOSB calculation Saudi Arabia for 7 years of service with a monthly salary of 8,000 SAR would 

Check out: Discover Saudi Labor Law End of Service Calculator with Etqan Law Firm

Qiwa’s EOSB Calculator in KSA

If you’re looking to understand how to calculate EOSB in KSA, the process is straightforward and aligns with the official method provided by the Saudi government. The Saudi Labor Law EOSB calculation follows a structured formula based on years of service and salary, and you can utilize platforms like Qiwa’s EOSB calculator in KSA to get accurate results instantly.

To calculate your End-of-Service Benefits, follow these simple steps — similar to those provided on the official Qiwa platform:

  1. Log in to the Qiwa platform using your account credentials.
  2. Select the service titled End-of-Service Calculator.
  3. Enter the required details, which include:
    • Type of employment contract.
    • Reason for contract termination.
    • Monthly salary.
    • Total years of service.
  4. Click on the “Calculate” button to view the EOSB amount you’re entitled to, based on the data provided and the guidelines of the Saudi Labor Law.

Using the EOSB calculator in KSA ensures that employees and employers alike can accurately estimate the compensation owed at the end of a working relationship — promoting transparency and compliance with Saudi labor regulations.

What are The Cases Where Employees Are Not Entitled to End-of-Service Benefits?

Using an EOSB Calculator can help employees and employers estimate entitlements accurately, but it is important to know the situations where End-of-Service Benefits (EOSB) are not applicable under Saudi Labor Law.

According to Article 80 of the Saudi Labor Law, an employer may terminate the employee’s contract without granting EOSB in the following cases:

  • Assault on others: If the employee physically or verbally assaults the employer, a manager, or any colleague during or due to work.
  • Failure to fulfill job duties: If the employee refuses to carry out contractual obligations or ignores lawful instructions despite receiving a written warning.
  • Unethical conduct: Engaging in behavior that is immoral or violates professional integrity or trust.
  • Forgery: If it is proven that the employee falsified documents or provided false information to secure the job.
  • Probationary period: If the contract is terminated while the employee is still under probation.
  • Unauthorized absence: If the employee is absent without valid reason for more than 30 non-consecutive days in a year or 25 consecutive days, after a written warning.
  • Disclosure of work secrets: If the employee shares confidential information or trade secrets belonging to the organization.

For employees who are unsure whether they qualify for EOSB, using an EOSB Calculator is recommended to quickly determine the potential benefits. Employers can also use an EOSB Calculator to ensure compliance with Saudi Labor Law when calculating benefits during contract termination.

Learn about: End of Service Calculator Qiwa: Complete Guide to Calculating Benefits

Conclusion

Using an EOSB Calculator helps employees and employers in Saudi Arabia accurately estimate End-of-Service Benefits and ensure compliance with Saudi Labor Law. For professional guidance and support in navigating EOSB calculations or labor law matters, consulting a trusted firm like Etqan Law Firm can provide expert advice and ensure all employee rights and obligations are properly handled.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +96656113776, +966541110440, +966504315333.

Additionally, feel free to visit our branches located at:

  • Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
  • Riyadh: King Abdulaziz Street, across from the Kingdom Tower
  • Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

FAQ

What is EOSB under Saudi labor law?

End-of-Service Benefit (EOSB) is a financial entitlement for employees upon contract termination, as regulated by Article 84 of the Saudi Labor Law.

How to calculate EOSB in Saudi Arabia?

EOSB is calculated based on the employee’s length of service and last drawn salary, using half a month’s pay for the first five years and a full month for each subsequent year.

What are the rules for EOSB calculation according to Saudi Labor Law?

The law specifies eligibility, accrual rates, exclusions, and adjustments depending on service duration, type of contract, and reason for termination.

How does EOSB differ between resignation and termination?

Employees terminated by the employer usually receive full EOSB; those who resign may receive partial or no EOSB depending on their tenure and reason for leaving.

Is there an official EOSB calculator in KSA?

Yes, the Qiwa platform offers an official EOSB calculator for employees and employers to estimate entitlements.

How does the number of years of service affect the EOSB amount?

Longer service increases EOSB: the first five years are calculated at half a month per year, and years beyond that at one month per year.

What salary components are included in the EOSB calculation?

Typically, the calculation is based on the employee’s basic salary; allowances and bonuses are usually excluded unless stated otherwise.

Does an employee get EOSB if they resign before completing two years?

No, employees who resign before completing two years of service are generally not entitled to EOSB under Saudi Labor Law.

How to calculate EOSB for a limited vs. unlimited contract?

The calculation method is the same for both, but contract type may affect eligibility, especially regarding early resignation or probation periods.

What is the EOSB formula for Saudi nationals and expatriates?

The formula is generally identical:
First 5 years: 0.5 × monthly salary × years
Beyond 5 years: 1 × monthly salary × years