Saudi Arabia End-of-Service Benefit 2026: How ESB Is Calculated
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In Saudi Arabia, your end-of-service benefit (ESB) is set by the Labour Law and depends on how long you worked and whether you resigned or were terminated.
The bands
You earn half a month's wage for each of your first 5 years, and a full month's wage for each year beyond 5. The wage used is your last wage including regular allowances.
Resignation changes everything
Unlike the UAE, resigning in Saudi Arabia reduces your ESB by service band:
- Under 2 years — nothing
- 2 to 5 years — one-third
- 5 to 10 years — two-thirds
- 10 years or more — the full award
If the employer terminates you, you get the full award regardless.
Worked example
SAR 8,000 wage, 6 years, terminated: first 5 years = 5 × ½ × 8,000 = SAR 20,000; year 6 = 1 × 8,000 = SAR 8,000. ESB = SAR 28,000. Had the same person resigned at 6 years, they'd get two-thirds = SAR 18,667.
Frequently asked questions
How is end of service calculated in Saudi Arabia?
Half a month's wage for each of the first five years and a full month's wage for each year beyond five, based on your last wage. Resignation reduces the award unless you have 10+ years.
Do I get end of service if I resign in Saudi Arabia?
Yes, but reduced: nothing under 2 years, one-third for 2–5 years, two-thirds for 5–10 years, and the full amount at 10+ years. Employer termination always pays the full award.
Is Saudi ESB on basic or total salary?
On the last wage including regular allowances, which is broader than the UAE's basic-only rule.
Is there a cap on Saudi end of service?
No statutory ceiling on the total award.