As we all know that every worker working in KSA is authorized to receive end-of-service benefits at the end of his work term. In this article, we have talked about the two end-of-service (ESB) calculators and also discussed the calculation in depth according to Saudi Labor Law. Let us know whether this article helped you to understand this or not in the comment box!
End of service calculator
Well, we have formed this ESB calculator and also experimented with it many times. You just need to do the following things-
- enter the first and last date of your work.
- afterwords, enter the numbers of days you were on leave without pay.
- your total gross salary
- and at the end, mention your reason for leaving or termination.
This ESB calculator has formed by the Ministry of Labor of Saudi Arabia. https://laboreducation.mlsd.gov.sa/en/calc
Fill in the following details-
- nature of contract
- reason of termination or leaving
- salary amount
- duration of work
Who is allowed to get ESB?
As we said above, every worker who is working in KSA is authorized to get the ESB with the subsequent 3 exceptions-
- an individual working without transferring the Iqama sponsorship.
- An individual working on a business visit visa.
- an individual working on a consultancy contract.
ESB in case of termination
According to article 84 of Saudi Labour Law, an employee is allowed to the following end of service benefits in case of a terminus-
- half salary for the starting 5 years for each year worked.
- full salary after the first 5 years for each year worked
ESB in case of Leaving
However, there are approx 7 various scenarios that have an impact on the calculation of ESB in case of leaving.
1. Leaving within 2 years- 0
According to article 85 of Saudi Labor Law, if you leave within 2 years without finishing your contract, then you are not allowed to and ESB.
2. Leaving between 2-5 years
According to article 85 of SLL, if you leave after two years before 5 years of service, you are entitled to-
- 1/3 of ESB grant
- ESB grant- half salary for every year.
Example : if an employee works for 4 years in the organization and his salary is 12000 SR per month the following calculation will apply
- ESB for the first Four years (12,000/2)x4x1/3=8,000
3. Leaving between 5-10 years
According to article 85 of SLL, if you leave after finishing 5 years but before 10 years of service, you are allowed to –
- 2/3 of ESB grant
- ESB grant- half salary for 5 years with full salary for each next year.
For example : if the employee has resigned after completing 8 years tenure in the organization and his last drawn gross salary was SR 12,000 per month. His calculation would be as follows
- ESB for the first five Years = ( 12,000/2) x 5 x 2/3 = 20,000
- ESB for next years = 12,000 x 3 x 2/3 = 24,000
- Total = 20,000 + 24,000 = 44,000
4. Leaving after 10 years
If you leave after 10 years you get the full end-of-service benefits awards as mentioned in article 85.
- half salary every year for the next 5 years
- full salary every year for the next time
For Example : If the employee leaves the organization after completing 12 years and his last month total salary was SR 12,000/- per month. His calculation would be as follows.
- ESB for the first 5 years = (12,000/2 ) X 5 X 1 = SR,30,000
- ESB for the Next period = 12,000 X 6 = SR. 72,000
- Total =30,000 + 72,000 = SR 102,000
5. Leaving at contract fulfillment
If you leave at the contract fulfillment, you are allowed to have ESB grants-
- half salary every year for the first 5 years
- full salary every year after 5 years
6. Leaving under Article 81
If you leave under article 81 of SLL, you are allowed to get all the benefits.
7. Leaving under Article 87
According to article 87, the later workers are allowed to get a full ESB grant-
- a female worker who leave within 6 months of marriage
- a female worker who leave within 3 months of becoming a mother
- a worker leaves due to an actual injury
- in case of death of a worker
What is covered in the ESB?
According to article 2 of Saudi Labor Law(SLL), all the fixed grants paid to a worker are covered in the ESB such as-
- mobile allowance
- basic salary
Payment of ESB (End of Service Benefits)
As per article 88 of SLL, a worker is required to pay ESB within-
- 1 week in case of termination
- 2 weeks in case of leaving
A worker has the right to file a lawsuit if the ESB is not paid within two weeks.
Moreover, No bank is authorized to withhold end of service benefits of the employees untill if there is any judicial decision made to do them so stated by Saudi Arabian Montery Agency.
End of Service Benefits for Domestic Workers
As per the council of minister’s resolution 310’s article 16 dated 07/071434.
- After completion of 4 years services as domestic worker he/she is entitled for one Salary
- Domestic workers are entitled 3 month salary after completing 12 years service as either housemaid or house driver
- Source : Article 16 of Resolution 310
Please note that above mentioned KSA End of Service Benefit calculator is not for domestic workers and would not calculate domostic workers ESB.