Saudi Labour Law, Article 84–85 (End of Service Award)
ArcHR
KSA End of Service Benefits Guide
Saudi Labour Law, Article 84–85 (End of Service Award). End-of-service award calculation for Saudi and expatriate employees under Saudi Labour Law.
Part of: KSA HR Compliance Guide
· by ArcHR Compliance Team
By Swajan
How is KSA end-of-service award calculated?
End-of-service award compensates employees on contract termination. Calculation uses length of service and last wage — rules differ for resignation vs termination and for fixed vs unlimited contracts.
When must KSA employers pay end-of-service benefits?
Pay award with final settlement. Document calculation method. Accrue liability for finance reporting.
What are common KSA compliance mistakes?
KSA SMEs frequently miss GOSI registration for new joiners, file Mudad late, or under-report Saudization. Maintain iqama expiry calendars and align Qiwa contract data with payroll each month.
How does ArcHR help KSA employers?
ArcHR supports GOSI calculations, Mudad-ready payroll exports, Nitaqat headcount views, and document expiry alerts for iqama and contracts.
Related tools
Frequently asked questions
Is EOSB mandatory in KSA?
End-of-service award applies to eligible separations under Labour Law.
Resignation vs termination?
Award may be reduced for resignation depending on service length.
What salary base is used?
Calculation uses last wage including applicable components per Articles 84–85.
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