Calculate End Of Service Benefits In Saudi Arabia

End of service is a lump sum amount payable to the employee upon leaving services after a certain period of time. Mostly, the private sector offers it to its employees. While in the Govt Jobs, the employee gets the pension usually.

In Saudi Arabia, the expats get the end of service benefits on leaving the organization. It can be due to retirement, resignation, or termination of the contract. Let’s calculate how much a worker can get the end of service benefits?

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As per the Ministry of Labor Saudi Arabia, a worker is entitled to the end of services, if he completes a minimum of 2 years of the services. Before we start calculating, we must know the different scenarios which may affect the EOSB (end of service Benefits).

Eligibility.

All employees working in an organization are eligible for EOSB. However, in a few situations, they may not get it. The conditions are,

The employee working on a temporary work visa. ( a special work visa with a 1-year validity, and doesn’t renew)
The employee is working on a special visa ( Business Visa, diplomatic visa)
Working as a consultant on a consultant contract.
Working in a company without the transfer of sponsorship. ( usually a contract between employer and employee for a fixed time. For example, Aramco contract employees)

End Of Service Benefits Calculator

Ministry of Labor provides an online EOSB calculator. By using it, you can easily calculate the benefits. However, it has many options for employment. let’s see what they are and how to use them.

Type Of Contract

The very first option is ‘Type Of Contract’. You have two options, ‘Fixed Time’ and ‘Unlimited Period’. Most of the companies in Saudi Arabia offer an unlimited period contract. While signing the contract, ask HR about it. But, most of the contracts are ‘Unlimited Contracts’ in Saudi Arabia.

Reasons And End Of Service Benefits

This is most important to know the end of service reasons and benefits. Because it has a huge impact on the EOSB. An employee leaves the job due to any of the following 6 reasons. And, the reasons are,

Expiration of Contract Terms Or The Parties Have Agreed To Terminate Contract.

This is the most common reason to leave the company. And, the employee should leave the company by mutual consent. It also means that the employee leaves the job upon the completion of the contract.

EOSB Benefits: The worker will get ½ salary for each year up to 5 years. And, Then full salary for the next each year.

Termination Of The Contract By The Employer

Sometimes, the company decides to lower the staff. So, it terminates the contract of the employee. It is the second most common reason to get EOSB. But, it happens when the organization doesn’t have enough work. And, they decide to reduce the workforce.

EOSB Benefits: The worker will get ½ salary for each year up to 5 years. And, Then full salary for the next each year.

Termination Of The Contract By The Employer For One Of The Terms And Conditions Stated In The Article (80)

If an employee gets terminate according to Article 80, Then, he is not eligible for any EOSB in any case. According to Article 80, the employer can terminate the employees if they are found guilty of misconduct, dishonesty, and criminal activity.

EOSB Benefits: Such employees are not eligible for EOSB. So they don’t get any amount except for the termination of the job.

End Of Service Benefits Upon Leaving Work As A Result Of Force Majeure.

A force majeure means the termination of the contract due to sudden unforeseeable circumstances. We have seen that in 2015 when a recession struck the kingdom.

EOSB Benefits: The worker will get ½ salary for each year up to 5 years. And, Then full salary for the next each year.

The worker terminates the labor contract within six months into the marriage contract or three months into the birth

This option is for female employees. If she decides to quit the job with the first six months of the marriage, she can.

Similarly, if she gives birth to a baby, then she has the option to terminate the contract.

End Of Service Benefits. The worker will get ½ salary for each year up to 5 years. And, Then full salary for next each year. In other words, the employer gets the full end of service benefits.

The Worker Leaves Work For One of The Conditions Stated In Article (81)

Article 81 is all about the basic rights of the employee. It protects the worker from being bullied, insulted, and mistreated. MOL allows the employee to terminate the contract under article 81.

EOSB Benefits. The worker will get ½ salary for each year up to 5 years. And, Then full salary for next each year.

The Worker Leaves Work Without Submitting His/Her Resignation Other Then The Conditions Stated In Article 81

Leaving the work without any notice or resignation is never a good choice. In fact, it deprives the employee of all perks and benefits of EOSB.

EOSB Benefits. The worker gets nothing if he uses the option. The Company will not pay anything even at the end of a 30 years’ service. So, the employee should avoid it at all costs.

The Resignation Of A Worker And End Of Service Benefits.

It’s common to submit a resignation. But it’s better to use the option in special circumstances. Because a major chunk of EOSB cuts on submitting the resignation

EOSB Benefits. The worker will get 1/3^rd salary for each year up to 5 years. And, Then 2/3^rd for each year up to 9^th year. And, upon completion of 10 years or more, The Company will pay the full amount of EOSB.

So, now, how can you access the official calculator? Here is the link and choose the options as per your contract, and the number of service years.

Link