End of Service · Saudi

    End of Service Benefits Software Saudi Arabia — EOSB

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    End-of-service benefits under the Saudi Labour Law are easy to miscalculate — the award is half a month's wage per year for the first five years and a full month per year after that, and resignation changes the entitlement on a sliding scale. NeuralHR.AI computes the award automatically from each employee's wage and service, applies the resignation-versus-termination rules, and hands a human the final number to approve.
    Sibanee Kar· Founder & CEO, NeuralHR.AI LinkedIn Last updated 22 June 2026 Independently researched

    How is end-of-service calculated in Saudi Arabia?

    Under the Saudi Labour Law, end-of-service benefit is half a month's wage for each of the first five years of service and one month's wage for each year after that, based on the last wage. On resignation the award is reduced on a sliding scale — none under two years, one-third for two to five years, two-thirds for five to ten years, and the full amount after ten years. NeuralHR.AI computes this automatically for a human to approve.

    Why this matters

    Articles 84–85

    Compute Saudi end-of-service correctly every time — the 15-day / 30-day formula, the resignation sliding scale, unused-leave dues and Hijri dating — instead of rebuilding a spreadsheet for every leaver.

    What's in the platform

    Automatic EOSB formula

    Half a month's wage per year for the first five years and a full month per year thereafter, computed from the last wage — no manual maths.

    Resignation sliding scale

    Applies the Article 85 resignation rules automatically: none under two years, one-third for two to five, two-thirds for five to ten, full after ten.

    Termination vs contract expiry

    Distinguishes termination, resignation and fixed-term expiry, each with the correct end-of-service treatment.

    Final settlement

    Rolls unused leave, pending dues and deductions into a single, approvable settlement figure.

    Hijri + Gregorian service

    Service periods and dates render in both calendars so the award matches the contract basis.

    What-if calculator

    Model an employee's end-of-service at any future date to budget and plan ahead.

    How NeuralHR.AI calculates Saudi end-of-service

    1. 1

      Capture service and wage

      Pull the employee's start date, exit date and last wage. Hijri and Gregorian service periods are computed side by side.

    2. 2

      Classify the exit

      Mark the exit as termination, resignation or contract expiry — each carries different end-of-service treatment under the Labour Law.

    3. 3

      Apply the Saudi formula

      Half a month's wage per year for the first five years, a full month per year thereafter, with the resignation sliding scale applied automatically.

    4. 4

      Add the final settlement

      Unused annual leave, pending dues and deductions are rolled into one final settlement figure.

    5. 5

      Approve the settlement

      A human reviews and approves the calculated award before anything is paid. Nothing is finalised without sign-off.

    6. 6

      Archive for audit

      The full calculation, exit reason and settlement are timestamped and exportable for Ministry or GOSI audit.

    Why this matters

    Getting end-of-service wrong is both a cash and a compliance problem: underpay and you face a labour claim, overpay and you leak margin on every leaver. The resignation sliding scale and the 5-year threshold are where manual calculations slip — automating them protects both sides.

    How it stacks up

    The common approach is a spreadsheet that one person maintains and everyone hopes is right. NeuralHR computes the award from the Labour Law formula every time, shows its working, and keeps an audit trail — so a final settlement can be defended, not just asserted.

    Related — explore deeper

    Frequently asked questions

    How is end-of-service calculated in Saudi Arabia?

    Under the Saudi Labour Law, end-of-service is half a month's wage for each of the first five years of service and one month's wage for each subsequent year, based on the last wage. NeuralHR computes this automatically for review.

    Does resignation reduce the award?

    Yes. On resignation the award follows a sliding scale: nothing under two years, one-third for two to five years, two-thirds for five to ten years, and the full amount after ten years. NeuralHR applies this automatically.

    Are unused leave and other dues included?

    Yes. Unused annual leave, pending dues and deductions are rolled into a single final settlement figure for approval.

    Does it handle Hijri dates?

    Yes. Service periods and dates are shown in both Hijri and Gregorian calendars so the award matches the contract basis.

    Is end-of-service calculation included in the plan?

    Yes. End-of-service calculation is included in every paid plan, from SAR 399 / month, alongside payroll, GOSI and Mudad.

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    End of Service Benefits Software Saudi Arabia — EOSB