Understanding how to calculate end of service in KSA ensures knowing the exact amount due at the end of employment. Calculating end-of-service benefits in Saudi Arabia is one of the most important employee rights guaranteed by the Saudi Labor Law.
The law and official tools provide clear guidance to calculate the benefit fairly and transparently, considering years of service, last salary, and any special circumstances that may affect entitlement. The official calculator provided by the Ministry of Human Resources and Social Development also simplifies the process without any complicated manual calculations.
المحتويات
How to Calculate End of Service in KSA?
- To understand how to calculate end of service in KSA, it’s important to know that end-of-service benefits are a financial amount paid by the company to the employee when the employment relationship ends.
- These benefits are considered a fundamental employee right, and the employer is obligated to pay them whether the contract is fixed-term or open-ended, provided the employee has completed the probation period.
- Under Saudi Labor Law, the basis of how to calculate end of service in KSA includes:
- Half a month’s wage for each of the first five years of service.
- One full month’s wage for each year thereafter.
- Calculating the benefit based on the last salary received by the employee.
- The method of how to calculate end of service in KSA also includes compensation for partial years, calculated proportionally according to the time the employee worked during that year.
- These guidelines clearly outline how to calculate end of service in KSA in a way that ensures fairness and compliance with Saudi labor regulations.
How to Calculate End of Service Benefits in KSA Using the Official Calculator?
The Ministry of Human Resources and Social Development provides an accurate online tool on its official website, allowing employees and employers to understand how to calculate end of service benefits in KSA easily and transparently—without the need for any complicated manual calculations.
Below is a simplified, step-by-step guide to using the official calculator:
Read also: How to Calculate Saudi Labor Law End of Service Benefits?
1. Access the Official Platform
Start by visiting the The Ministry of Human Resources and Social Development or the “Qiwa” platform through their verified links.
From there, select the “End of Service Benefits Calculator” service.
2. Enter the Required Basic Information
A page will appear containing several fields that must be filled out accurately, including:
- Contract type: fixed-term or open-ended.
- Reason for ending the employment relationship: resignation – contract expiration – dismissal – death or disability.
- Length of service: in years and months.
- Last total wage received: including basic salary and regular allowances.
3. Click the “Calculate” Button
Once all the information is entered, the tool instantly shows the exact value of the End of Service Benefits, demonstrating clearly how to calculate end of service benefits in KSA, with a breakdown of each part of the service period.
4. Review the Result and Compare It With the Employment Contract
It is recommended to compare the result with the terms of the employment contract and the company’s internal policies to ensure that there are no exceptions or special conditions affecting the final amount.
5. Save or Print the Result
The system allows you to print the final calculation or save it as an electronic document. This helps both parties — the employee and the employer — in documenting the legal amount, whether for official purposes or in case of any future disputes.
Check out: End of Service Calculator Qiwa: Complete Guide to Calculating Benefits
Cases Where an Employee Is Not Entitled to End of Service Benefits in Saudi Arabia
The employment contract forms the basis of the relationship between the employee and the employer, defining the rights and obligations of both parties, including wages, leave, compensation, and end-of-service benefits. Understanding how to calculate end of service in KSA requires not only knowing the standard formula but also recognizing situations where an employee may lose entitlement.
According to the Saudi Labor Law, there are specific cases where the right to claim end-of-service benefits is forfeited, which is important to consider when learning how to calculate end of service in KSA:
- Assaulting the employer or supervisors: Including physical violence, verbal abuse, or acts that harm the workplace or its clients.
- Acts against honor and honesty: Any behavior proven to violate ethical or professional standards.
- Submitting fraudulent documents: To obtain employment or promotion.
- Disclosing confidential work information: Sharing sensitive company or client information.
- Deliberately causing financial loss: Or inflicting actual harm to others during employment.
- Abusing the job position: Using the role for personal gain at the company’s expense.
- Fraud or forgery during employment: Any verified acts of forgery while on the job.
- Extended unexcused absence: Being absent for more than twenty days without valid reasons.
- Failure to fulfill contractual duties: Not performing responsibilities as outlined in the employment contract.
Being aware of these conditions is essential for employees and employers to correctly determine how to calculate end of service in KSA, ensuring accurate computation and compliance with Saudi labor regulations.
Learn about: End of Service Calculator KSA for Accurate EOSB Calculation 2025
Conclusion
Knowing how to calculate end of service in KSA is essential not only for employees but also for employers to ensure compliance with the law and protection of rights. This approach promotes fairness and transparency in the workplace, making the end-of-service process clear and straightforward for everyone. For professional legal guidance regarding employment rights and end-of-service calculations, consulting a reputable firm like Etqan Law Firm is always recommended.
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: +966550600204, +966551020060.
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
How to calculate Saudi end of service?
It’s calculated based on your last salary and years of service: half a month’s wage for each of the first five years and one month’s wage for each subsequent year. Partial years are calculated proportionally.
How do you calculate your end of service?
Determine your total years of service and last basic plus allowances, then apply the official formula: 0.5 month per year for first 5 years, 1 month per year after.
How to calculate final settlement?
Final settlement includes your end-of-service benefits, unpaid leave, and any pending allowances. Use your last salary as the basis and calculate each component proportionally.
What is the formula to calculate ESB?
ESB = (Last monthly wage × 0.5 × first 5 years) + (Last monthly wage × 1 × remaining years); adjust for partial years if applicable.