Saudi Arabia | End of Service (EoS) Benefit Guide

Saudi Arabia | End of Service (EoS) Benefit Guide

Saudi Arabia’s End of Service (EoS) Benefit is a mandatory statutory payment owed to employees when their employment ends, governed by the Saudi Labour Law (Royal Decree No. M/51), notably Articles 84–87, which outline entitlement rules, calculation methods, and the impact of termination reasons.

This guide summarises the key legal principles behind EoS entitlement, including how service length, contract type, and termination category affect the benefit due, as well as special rules for domestic workers under their separate regulation. It also explains calculation methodology, statutory exceptions, and employer obligations at the point of termination. The aim is to provide a clear and accessible reference for users working with Saudi payroll and compliance, ensuring consistent and accurate application of Labour Law requirements.
    • Related Articles

    • Saudi Arabia | GOSI Guide

      The General Organization for Social Insurance (GOSI) is Saudi Arabia’s national social insurance authority responsible for administering statutory pensions, work-injury coverage, and unemployment insurance. Its framework is primarily governed by the ...
    • Malawi | Is Medical Insurance liable to Fringe Benefit Tax?

      Malawian legislation states that Medical care is not liable for Fringe Benefit Tax (FBT). Fringe Benefit Tax (FBT) is tax paid on the taxable values of fringe benefits being provided by an employer to an employee. The rate for FBT is 30% and all ...
    • UAE Payroll Tax Guide 2025

      The UAE Payroll Tax Guide is an easy-to-understand summary of statutory contributions associated with payroll for the 2025 tax year.
    • UAE | How do I resolve "Error Check: EOS Calculation (Inactive)"

      This error is related to "Employee Daily Rate (EOS Calculation)" Note component that is added on the recurring screen. When receiving this error there are 3 fields that need to be completed. The employee package rate has to be completed on the Pay ...
    • Egypt Product User Guide

      To aid our users in the understanding and application of compliance in Egypt, PaySpace has released an external Product User Guide. This is a "How to guide" to follow during country implementations, company maintenance and, for support queries.