Leaving Your Job in Saudi? Find Out Your End of Service Pay Instantly!

What Happens to Your End of Service Pay When You Resign or Get Terminated?

Can you imagine working for years in Saudi Arabia and then leaving your job without knowing how much end of service pay in Saudi you are entitled to? Many employees face uncertainty when resigning or getting terminated.

• Will you receive full benefits?

• How is your end of service pay in Saudi calculated?

• What if your employer refuses to pay?

These concerns are common among expatriates and Saudi employees. But don’t worry—this guide will break down everything you need to know, ensuring you get the benefits you deserve.

Understanding the End of Service Pay in Saudi Arabia

The end of service pay in Saudi is a legal entitlement given to employees upon leaving their job. It is calculated based on the number of years worked and the final salary. The Ministry of Human Resources and Social Development (MHRSD) regulates these payments under Saudi Labor Law.

Who is Eligible for End of Service Pay?

Any employee working under a valid contract in Saudi Arabia is entitled to end of service pay in Saudi. However, the amount depends on several factors:

• Type of Contract – Fixed-term or unlimited contract.

• Reason for Leaving – Resignation, termination, or retirement.

• Years of Service – The longer you work, the higher the payout.

How to Calculate Your End of Service Pay?

General Formula for Calculation

The end of service pay in Saudi is calculated as follows:

1. First 5 Years of Service – You get half a month’s salary per year.

2. After 5 Years – You get one full month’s salary per year.

Example Calculation

Let’s say your final salary is SAR 10,000, and you worked for 8 years:

• First 5 years: (10,000 ÷ 2) × 5 = 25,000 SAR

• Remaining 3 years: (10,000 × 3) = 30,000 SAR

• Total End of Service Pay = 55,000 SAR

The exact calculation may vary based on your employment contract and termination reason.

Resignation vs. Termination: How Does It Affect Your Pay?

Your end of service pay in Saudi varies depending on whether you resign or are terminated.

Resignation Cases

• Less than 2 Years: No entitlement to end of service pay in Saudi.

• Between 2 and 5 Years: 1/3 of the total calculated amount.

• Between 5 and 10 Years: 2/3 of the total amount.

• More than 10 Years: Full payment.

Termination Cases

• If the employer terminates you without a valid reason, you receive full compensation.

• If you are fired for misconduct (Article 80 of Saudi Labor Law), you may not receive compensation.

How to Claim Your End of Service Pay in Saudi Arabia?

Follow These Steps:

1. Check Your Contract: Ensure that your agreement follows Saudi Labor Law.

2. Request a Calculation: Ask HR for an official breakdown.

3. Negotiate if Needed: If the amount seems incorrect, discuss it with HR.

4. File a Complaint if Necessary: If the employer refuses to pay, report it to the MHRSD.

Common Reasons Employers Deny End of Service Pay

Employers may refuse to pay end of service pay in Saudi for the following reasons:

• The employee resigned before completing 2 years.

• Termination due to serious misconduct.

• Disputes over the last drawn salary.

• Employer financial difficulties.

If faced with refusal, employees can file a legal complaint.

Final Thoughts

Leaving a job is a big decision, and knowing your rights is crucial. Your end of service pay in Saudi is a legally protected benefit, and understanding the rules ensures you get what you deserve.

Before resigning or accepting termination, calculate your pay and take the necessary steps to secure it. If you face any issues, seek legal assistance to protect your rights.