A Deep Dive Into EOSB Calculator

A Deep Dive Into EOSB Calculator

Published By

Human Resources
May 6, 2024

An End of Service Benefit (EOSB) calculator is a tool that helps estimate the total amount of value (Settlement) one might get after leaving a job. 

There are two main scenarios where you might be eligible for an EOSB:

  • After completing a minimum service period (usually after 2 years) with your employer.
  • Upon retirement.

In Saudi Arabia, the EOSB Calculator helps you to get a settlement estimation that you are entitled to get under Saudi Labor Law. 

Let’s see a calculation to make it more calculation:

Salary:  SAR 10,000.

Tenure: Less than 5 years & More than 5 years 

Service Tenure Settlement (Less than 5 years) Settlement (More than 5 years)
Monthly Salary (SAR) 10000 10000
Years Worked 4 years 6 months 7 years 6 months
Salary/Day 333.33 333.33
Settlement Days 62.05 151.5
First 5 years (1/2 monthly salary per year) 20,671.23 25,000
5+ years (1 monthly salary per year) NIL 25,500
Total End of Service 20,671.23 50,500

The reasons of termination can be 

  1. Contract Ends: The agreed work period is over.
  2. Employer Ends Contract: Your employer decides to stop the employment relationship.
  3. Employer Ends Contract (with cause): Your employer fires you for a reason outlined in Article (80). (Note: You might want to research Article (80) to understand the specific reasons)
  4. Unforeseen Circumstances Force You to Leave: Events beyond your control require you to quit.
  5. Job Ends Around Life Events: Your employment ends within a specific timeframe of marriage or childbirth. (Note: You might want to investigate the specific timeframes mentioned)
  6. You Leave Due to Reasons in Article (81): You quit for a reason outlined in Article (81). (Note: You might want to research Article (81) to understand the specific reasons)

The reason for termination will affect the final value of the calculation.

Benefits of EOSB calculator in Saudi Arabia

Estimation of Payment: An EOSB calculator of Saudi Arabia gives you an estimate of your settlement, based on your current salary, years of service, and reason for leaving the company. 

Adheres to Saudi Labour Law: According to Article 84, the employer is bound by the law to pay a settlement to the employee upon termination of their employment, based on how long they've worked for the company. An EOSB calculator in Saudi Arabia follows this legal framework while calculating the settlement. 

Important things to remember about EOSB calculators in Saudi Arabia:

  • Estimation tool: The calculators provide an estimate, and the actual amount might differ slightly.
  • Not for domestic workers: These calculators are based on the Saudi Labor Law and might not apply to domestic workers who have separate regulations under Article 16 of the Domestic Workers Law.
  • Contract terms: If your employment contract specifies different terms for EOSB than the standard law, the calculator might not reflect that.

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