{"id":31757,"date":"2025-12-25T22:19:06","date_gmt":"2025-12-25T22:19:06","guid":{"rendered":"https:\/\/etqanlawfirm-sa.com\/?p=31757"},"modified":"2026-04-05T17:13:19","modified_gmt":"2026-04-05T17:13:19","slug":"esb-in-saudi-arabia","status":"publish","type":"post","link":"https:\/\/etqanlawfirm-sa.com\/en\/esb-in-saudi-arabia\/","title":{"rendered":"ESB in Saudi Arabia: How To Calcuate it?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ESB in Saudi Arabia (End of Service Benefits) refers to the financial and non-financial rights that an employee is entitled to receive upon termination of their employment relationship, whether due to resignation or dismissal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the ESB system in Saudi Arabia is essential for both employers and employees, as it clearly outlines how benefits are calculated, the eligibility period, the type of salary used for computation, and the cases in which certain employees may be excluded from receiving benefits. <\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/api.whatsapp.com\/send?phone=966550600204\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Request Legal Services<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>What is ESB in Saudi Arabia?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The term ESB in Saudi Arabia refers to all financial and non-financial rights that an employee is entitled to receive upon the termination of the employment relationship with the employer, whether due to resignation or dismissal. Understanding ESB in Saudi Arabia is essential for both employers and employees to ensure compliance with labor regulations and avoid disputes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>What are The Financial Benefits under ESB in Saudi Arabia?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Outstanding Wages:<\/strong> Any unpaid salaries or allowances owed by the employer to the employee.<\/li>\n\n\n\n<li><strong>Cash Compensation for Unused Leave:<\/strong> The monetary value of accrued but unused annual leave.<\/li>\n\n\n\n<li><strong>End of Service Award:<\/strong> The financial amount that the employee is entitled to under ESB in Saudi Arabia, particularly according to Articles 84, 85, 86, and 87 of the Saudi Labor Law.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What are The non-Financial Benefits<\/strong>?<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Return of Tools and Documents:<\/strong> Employees have the right to reclaim all tools and documents they provided to the employer during the course of employment.<\/li>\n\n\n\n<li><strong>Work or Experience Certificate:<\/strong> Employees are entitled to a certificate detailing the type of work performed, the duration of employment, and the salary earned.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While ESB in Saudi Arabia primarily focuses on the financial end-of-service award, which constitutes the main entitlement under Saudi Labor Law, the non-financial benefits serve to protect the employee\u2019s rights and document their professional experience.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read Also:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"> <a href=\"https:\/\/etqanlawfirm-sa.com\/en\/saudi-labor-law-end-of-service-benefits\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Calculate Saudi Labor Law End of Service Benefits?<\/a><\/mark><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"597\" src=\"https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/12\/ESB-in-Saudi-Arabia-1024x597.webp\" alt=\"ESB in Saudi Arabia\" class=\"wp-image-31957\" title=\"\" srcset=\"https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/12\/ESB-in-Saudi-Arabia-1024x597.webp 1024w, https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/12\/ESB-in-Saudi-Arabia-300x175.webp 300w, https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/12\/ESB-in-Saudi-Arabia-768x448.webp 768w, https:\/\/etqanlawfirm-sa.com\/wp-content\/uploads\/2025\/12\/ESB-in-Saudi-Arabia.webp 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">ESB in Saudi Arabia<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>How to Calculate ESB in Saudi Arabia?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The computation of ESB in Saudi Arabia depends on the type of salary the employee receives and the length of their service. Here is how the calculation is done in different scenarios:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>A. For Monthly-Salaried Employees<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">According to Article 84 of the Saudi Labor Law, end of service benefits are calculated based on the employee\u2019s monthly salary:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The first years:<\/strong> Half of the monthly salary is paid for each of the first years.<\/li>\n\n\n\n<li><strong>Years following the initial period:<\/strong> A full monthly salary is paid for each year beyond the initial period.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Example<br><\/strong>&nbsp;If an employee has worked for 6 years with a monthly salary of 6,000 SAR:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For the first five years: Half salary \u00d7 5 = 3,000 \u00d7 5 = 15,000 SAR<\/li>\n\n\n\n<li>For the sixth year: Full salary = 6,000 SAR<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Total End of Service Benefits = 15,000 + 6,000 = 21,000 SAR<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a><strong>B. For Daily or Weekly-Salaried Employees<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">End of service benefits for employees who are paid on a daily or weekly basis are calculated based on the number of days or weeks worked, multiplying the daily or weekly wage by the actual service period.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/api.whatsapp.com\/send?phone=966550600204\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Request Legal Services<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>C. Exceptions<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Some employees may be excluded from receiving end of service benefits, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Disciplinary Termination:<\/strong> If the employee is terminated due to a serious violation or inappropriate behavior according to labor regulations, they are not entitled to end of service benefits.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Check Out: <a href=\"https:\/\/etqanlawfirm-sa.com\/en\/end-of-service-benefits-saudi-labor-law\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">End of Service Benefits Saudi Labor Law: Rights After Contract Termination<\/mark><\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Cases Where an Employee May Forfeit End of Service Benefits (ESB) in Saudi Arabia under Article 80<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the protection provided by the Saudi Labor Law for ESB in Saudi Arabia, certain situations may lead to an employee being denied these benefits, as outlined in Article 80 of the Saudi Labor Law. These cases include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Assaulting the employer, their representative, or the employee\u2019s supervisor.<\/li>\n\n\n\n<li>Failure to perform contractual duties specified in the employment agreement.<\/li>\n\n\n\n<li>Engaging in immoral conduct or acts violating integrity and honesty.<\/li>\n\n\n\n<li>Deliberate negligence causing significant financial loss to the employer.<\/li>\n\n\n\n<li>Fraud or forgery to obtain employment.<\/li>\n\n\n\n<li>Being employed under a probationary period, if the contract specifies no entitlement to ESB in Saudi Arabia during this period.<\/li>\n\n\n\n<li>Unjustified absence from work:<ol><li>More than 20 separate days within a year, after a warning issued within 10 days.<\/li><\/ol>\n<ol class=\"wp-block-list\">\n<li>More than 10 consecutive days, after a warning issued within 5 days.<\/li>\n<\/ol>\n<\/li>\n\n\n\n<li>Misusing employment for personal gain in an unlawful manner.<\/li>\n\n\n\n<li>Disclosure of work-related secrets or sensitive employer information.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">This ensures that both employers and employees clearly understand the circumstances under which ESB in Saudi Arabia may or may not be granted, preventing disputes and ensuring compliance with Saudi labor regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Learn About: <a href=\"https:\/\/etqanlawfirm-sa.com\/en\/end-of-service-calculator-qiwa\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">End of Service Calculator Qiwa: Complete Guide to Calculating Benefits<\/mark><\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Proper knowledge and application of <a href=\"https:\/\/www.hrsd.gov.sa\/sites\/default\/files\/2017-05\/LABOR%20LAW.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">ESB in Saudi Arabia<\/mark><\/strong><\/a> ensures that employees receive their rightful benefits while employers remain compliant with labor regulations. Legal guidance from experienced firms, such as <strong>Etqan Law Firm<\/strong>, can further assist in navigating ESB matters effectively and protecting the rights of all parties involved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/etqanlawfirm-sa.com\/en\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Etqan Al Mutamayza<\/mark><\/strong><\/a> Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: \u200e<a href=\"https:\/\/api.whatsapp.com\/send\/?phone=966543104848&amp;text&amp;type=phone_number&amp;app_absent=0\" target=\"_blank\" rel=\"noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">+966543104848<\/mark><\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, feel free to visit our branches located at:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Dammam<\/strong>: <a href=\"https:\/\/share.google\/I3Z3IdJwdm4nQ4Yhs\" target=\"_blank\" rel=\"noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Al-Ashri&#8217;a Street, Al-Badeea, Dammam 32415<\/mark><\/strong><\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Jeddah<\/strong>: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Riyadh<\/strong>: <a href=\"https:\/\/share.google\/4XMzPaJTWjQXB651W\" target=\"_blank\" rel=\"noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">King Abdulaziz Street, across from the Kingdom Tower<\/mark><\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQ<\/strong><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1766160803061\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What is the ESB for domestic helpers in Saudi Arabia?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>\u00a0ESB for domestic helpers in Saudi Arabia refers to the end-of-service benefits they are entitled to receive when their employment ends. It is calculated based on the duration of service and monthly salary, usually after completing at least two years of service. The benefit provides financial compensation for the worker\u2019s service period.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1766160814263\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>How can I calculate end of service benefits in Saudi Arabia?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>\u00a0ESB is calculated according to Saudi Labor Law, based on the employee\u2019s monthly or daily wage and length of service. Typically, half a month\u2019s salary is paid for each year of the first five years, and a full month\u2019s salary for each additional year. Other factors like unused leave may also be included in the total calculation.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1766160825279\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>Is 3000 Riyal a good salary in Saudi Arabia?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>\u00a0A 3000 SAR monthly salary is considered low to moderate, depending on location and living expenses. In major cities like Riyadh or Jeddah, it may cover basic needs but not luxuries. Accommodation, transport, and family responsibilities significantly affect whether this salary is sufficient.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1766160834998\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><strong>What is the formula to calculate ESB?<\/strong><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The basic formula for ESB under Saudi Labor Law is:<br \/><strong>First 5 years:<\/strong> \u00bd monthly salary \u00d7 number of years<br \/><strong>Beyond 5 years:<\/strong> 1 full monthly salary \u00d7 number of additional years<br \/>\u00a0Add any unused leave or other entitlements to get the total ESB.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"ESB in Saudi Arabia (End of Service Benefits) refers to the financial and non-financial rights that an employee is entitled to receive upon termination of their employment relationship, whether due to resignation or dismissal. Understanding the ESB system in Saudi Arabia is essential for both employers and employees, as it clearly outlines how benefits are&#8230;","protected":false},"author":1,"featured_media":31955,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1395],"tags":[],"class_list":["post-31757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"_links":{"self":[{"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/posts\/31757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/comments?post=31757"}],"version-history":[{"count":0,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/posts\/31757\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/media\/31955"}],"wp:attachment":[{"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/media?parent=31757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/categories?post=31757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/etqanlawfirm-sa.com\/en\/wp-json\/wp\/v2\/tags?post=31757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}