Don’t Lose Money! Calculate Your End of Service Compensation Saudi Now

What if you left your job after years of service, only to realize you were underpaid or denied your rightful End of Service Compensation Saudi? Many employees in Saudi Arabia face confusion over how much they should receive when they resign or get terminated. The lack of clear understanding often leads to financial loss, legal troubles, or unnecessary stress.

This guide will help you calculate your End of Service Compensation Saudi accurately, ensuring you receive what you deserve. Keep reading to understand the legal framework, calculation methods, and factors affecting your payout.

What Is End of Service Compensation in Saudi Arabia?

End of Service Compensation Saudi (EOSC) is a financial entitlement given to employees when they leave a company due to resignation, termination, or contract expiration. This compensation is governed by the Saudi Labor Law, ensuring that employees receive fair treatment.

Who Is Eligible?

• All full-time employees under the Saudi Labor Law.

• Employees who resign after completing at least two years of service.

• Workers terminated by their employer without valid reasons.

Who Is Not Eligible?

• Employees dismissed due to misconduct.

• Workers resigning before two years of service.

• Contractual workers whose agreements exclude EOSC.

How to Calculate End of Service Compensation Saudi?

The Saudi Labor Law provides a structured formula to determine EOSC. It is based on your basic salary and your total years of service. Here’s a breakdown:

Basic Formula for Calculation

• First 5 Years of Service: Half a month’s salary for each year.

• Beyond 5 Years: One full month’s salary for each additional year.

Example Calculation:

Let’s say you worked for 7 years with a basic salary of 5,000 SAR.

1. First 5 years: 5 x (5,000/2) = 12,500 SAR

2. Additional 2 years: 2 x (5,000) = 10,000 SAR

3. Total EOSC: 12,500 + 10,000 = 22,500 SAR

Key Factors That Affect Your EOSC

• Resignation vs. Termination: If you resign before 5 years, you may get only partial compensation.

• Unjust Termination: Full EOSC is given if you’re fired without a valid reason.

• Bonuses & Allowances: EOSC is calculated on basic salary only, excluding bonuses.

How to Claim Your End of Service Compensation Saudi?

Steps to Follow:

1. Check Your Contract

   • Ensure there are no clauses affecting your compensation.

2. Verify Your Salary Records

   • EOSC is calculated based on your last drawn basic salary.

3. Request EOSC Calculation from HR

   • Your employer must provide you with a final compensation statement.

4. File a Complaint if Underpaid

   • If your employer denies rightful EOSC, approach the Saudi Labor Office.

Common Questions About End of Service Compensation Saudi

1. Will I Get EOSC If I Resign Before 5 Years?

• If you resign between 2 to 5 years, you get 1/3rd of your EOSC.

• If you resign between 5 to 10 years, you get 2/3rd of your EOSC.

• After 10 years, you are eligible for full EOSC.

2. What Happens If My Employer Refuses to Pay?

• Contact the Ministry of Human Resources and Social Development (MHRSD).

• File a labor complaint online or visit a labor office.

3. Does EOSC Include Housing and Transportation Allowance?

• No, it is calculated only on basic salary unless stated otherwise in the contract.

4. Can Expats Claim End of Service Compensation?

• Yes, expatriates working in Saudi Arabia are entitled to EOSC like Saudi citizens.

Final Thoughts: Secure Your Rightful Compensation

Many employees unknowingly lose money because they don’t understand their End of Service Compensation Saudi rights. Before you leave your job, make sure you calculate your EOSC correctly and follow the proper steps to claim it. Knowing your rights ensures that you get the compensation you deserve without any disputes.