Saudi GOSI & EOSB Gratuity Calculator
Calculate end-of-service gratuity and monthly GOSI social insurance deductions under Saudi Labor Law Articles 84 & 85 for Riyadh, Jeddah, Dammam, and across the Kingdom of Saudi Arabia.
Under Saudi Labor Law Article 84, EOSB equals half a month's wage (Basic + Housing) per year for the first 5 years and one full month's wage for each year thereafter. Resignation entitlements scale from 0% (<2 yrs), 33.33% (2-5 yrs), 66.67% (5-10 yrs), to 100% (>10 yrs).
Interactive Saudi EOSB & GOSI Calculator
Saudi GOSI & EOSB Gratuity Calculator
Saudi Labor Law Articles 84 & 85 & GOSI Statutory Rules
Saudi Statutory Compliance Quick Facts (2026)
- EOSB Wage Base
- Basic Salary + Housing Allowance (Article 84)
- First 5 Years
- Half a month's wage for each year of service
- Subsequent Years
- One full month's wage for each additional year
- Resignation Factor
- 0% (<2y), 33% (2-5y), 67% (5-10y), 100% (>10y)
- Saudi GOSI Rates
- 9.75% Employee | 11.75% Employer (Cap: SAR 45k)
- Expat GOSI Rate
- 0% Employee | 2.0% Employer (Occupational Hazards)
Key Differences: Saudi Labor Law vs Other GCC Countries
Unlike other Gulf jurisdictions where gratuity is based strictly on basic salary, Saudi Labor Law legally mandates the inclusion of Housing Allowance in the wage base when computing severance. Furthermore, Saudi Arabia enforces a strict resignation schedule under Article 85 to incentivize employee retention.
Wages and EOSB settlements must be disbursed through Mudad-verified bank channels to maintain compliance.
Monthly wage breakdowns must be synchronized with GOSI portal submissions before the 15th of each calendar month.
Notice periods, probationary terms, and non-compete clauses must align with digital Qiwa authenticated contracts.
Best Practices for Saudi Payroll Managers
- ✓Monthly Balance Sheet Provisioning: Accrue EOSB liabilities on a monthly basis based on current wage rates and tenure brackets.
- ✓GOSI Statutory Cap: The maximum monthly contributory wage cap for GOSI in Saudi Arabia is SAR 45,000.
- ✓Exceptions to Article 85 Reduction: Full gratuity is payable upon resignation if a female employee resigns within 6 months of marriage or 3 months of childbirth.
- ✓Unified Payroll File: Always generate WPS files matching the exact Mudad standard format to avoid Ministry of Human Resources fines.
Frequently asked questions
How is End-of-Service Benefit (EOSB) calculated under Saudi Labor Law Article 84?
Under Saudi Labor Law Article 84, the baseline EOSB is calculated as half a month's wage (Basic Salary + Housing Allowance) for each of the first 5 years of service, plus one full month's wage for each subsequent year of service.
How does employee resignation affect Saudi gratuity under Article 85?
Under Article 85: If an employee resigns with less than 2 years of service, they receive 0 SAR. Between 2 and 5 years, they receive 1/3 (33.33%) of the baseline EOSB. Between 5 and 10 years, they receive 2/3 (66.67%). After 10 years, they receive the full 100% entitlement.
Are allowances included in Saudi EOSB calculation?
Yes. Unlike the UAE where only basic salary is considered, Saudi Labor Law Article 84 mandates that EOSB is calculated on the 'last wage', which legally includes both Basic Salary and Housing Allowance.
What are the current GOSI contribution rates in Saudi Arabia?
For Saudi nationals, total GOSI is 21.5% (Employee: 9% Annuity + 0.75% SANED = 9.75%; Employer: 9% Annuity + 2% Hazards + 0.75% SANED = 11.75%), capped at SAR 45,000 monthly wage. For non-Saudi expatriates, the employee contributes 0% and the employer pays 2% for Occupational Hazards.
How does NeuralHR automate Saudi GOSI, Mudad WPS, and Qiwa?
NeuralHR integrates directly with Saudi statutory workflows: it automatically applies monthly GOSI deductions, manages Article 84/85 EOSB accruals on your balance sheet, and generates verified Mudad WPS payroll compliance files.
Automate Saudi Payroll, GOSI & Mudad Compliance
Manage Qiwa digital contracts, automated GOSI deductions, and Mudad WPS compliance without manual calculations or spreadsheets.