How to Calculate End of Service Benefits ESB in Saudi Arabia
Before we guide you that how to calculate “End of Service Benefits” we will tell you that who is eligible for it and who is not. According to Saudi Labor Law (Article 84-88) only those foreign workers are eligible for End of Service Benefits who has work for any Saudi company for at least 2 years.
The person who has work less than 2 year is not eligible for this. For women if they have resigned after 6 months of their marriage then they are eligible. Similarly if they have resigned after 3 months of giving birth to a child then they are eligible to use this service.
End of Service Benefits can only be calculated if employee is leaving the company. It doesn’t matter that if employee is resigning from the job or has been fired by the company but benefits will be different in both conditions. We will tell you the benefits of both conditions.
In Case of Resignation from an Employee
- If an employee resigns from company before 2 years then according to Saudi Labor Law employee can’t use End of Service Benefits because employee won’t be eligible for it.
- If an employee resigns after giving services of 2 years to a company then employee will be eligible for 1/3rd of ESB award. In this case percentage of salary will be half of the salary.
- If employee resigns after giving services of 5 years to a company then employee will be eligible for 2/3rd of ESB award. In this case percentage of salary will be full salary.
- If employee resigns after 10 years working for a same company then employee will be eligible for full ESB award. In this case percentage of the salary will also be full salary.
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In Case of Termination of Contract
- If company terminates employee before 5 years of his services then employee will be eligible for half of his salary.
- If company terminates employee after 10 years of his service then employee will be eligible for half of his salary but after 5 years he will be eligible for full salary.
- If company terminates employee after 10 years then percentage of his salary in this condition will be full.
End of Service Benefits or Award Calculator
For Expatriates Saudi Government has also provide a facility of End of Service Benefits Calculator which looks like this:
You can open this calculator by clicking on this link => ESB Calculator. It is available on Saudi government labor education website.