Computation of End of Service Benefits in Saudi Arabia
An end-of-service gratuity is a payment given to an employee at the end of their service with a company. If you are wondering how to calculate the ESB in Saudi Arabia, you are not alone. Sometimes it can be confusing and confusing to know what your legal right is. Fortunately, the government made it easy for you. For your ESB account, all you have to do is visit the MHRSD website and enter your details. The End of Service Calculator is easy to use and free.
How to Calculate ESB Using End of Service Calculator
The ESB calculation process in Saudi Arabia is easy. Simply enter your current salary, specify the type of contract, the reason for termination of service, and the number of years you have been working for your current employer. The ESB calculator will calculate your end-of-service benefits. You can also reset the calculator if necessary. Here are the steps.
Visit the End of Service Calculator page: https://laboreducation.mlsd.gov.sa/en/calc
- fixed time or
- unlimited period
Select one of the fixed time “end of service reasons”
- Expiration of the term of the contract or agreement of the parties to terminate the contract.
- Termination of the contract by the employer.
- Termination of the contract by the employer with one of the terms and conditions stipulated in article (80).
- Loss of work due to force majeure.
- The worker terminates the employment contract within six months of the marriage contract or three months after the birth.
- The worker leaves the job due to one of the conditions set forth in article (81).
- Termination of the contract by the worker or abandonment of work for other reasons not mentioned in article (81).
If your contract type is ‘Unlimited Duration‘, please select one of the ‘Ease of Service Reasons‘ listed below;
- Expiration of the term of the contract or agreement of the parties to terminate the contract.
- Termination of the contract by the employer.
- Termination of the contract by the employer with one of the terms and conditions stipulated in article (80).
- Loss of work due to force majeure.
- The worker terminates the employment contract within six months of the marriage contract or three months after the birth.
- The worker leaves the job due to one of the conditions set forth in article (81).
- Termination of the contract by the worker or abandonment of work for other reasons not mentioned in article (81).
- employee resignation.
Enter your base “salary“.
Enter the “service time” in years. (Optionally you can also enter months and days if needed)
Click the “green button” (the equals sign).
You will be able to see the tip at the top of the End of Service Benefits Calculator.
Article (80) of the Saudi Labor Law
Based on Article (80) of the Saudi Labor Law.
The employer may not terminate the contract without granting or prior notice or compensation, except in the following cases, provided that the worker is given the opportunity to state the reasons why he opposes the termination:
- If, during or because of work, the worker assaults the boss, the boss in charge or any of his superiors.
- If the worker fails to comply with the essential obligations derived from the employment contract or legitimate orders, or deliberately fails to comply with the instructions regarding the safety of work and workers, despite written warnings. The business owner is in a prestigious position.
- If it is proven that the worker has committed a fault or an act that violates honesty or trust.
- If the worker deliberately commits any act or omission with the intention of causing material damage to the employer, as long as the employer informs the competent authorities of the accident within twenty-four hours after learning of its occurrence.
- Whether the worker used fraud to get the job.
- If the worker is assigned to probation.
- If the worker is absent without legitimate cause for more than twenty days in a year or for more than ten consecutive days, provided that the dismissal is preceded by a written warning from the employer to the worker if he is absent for ten days in the first case and for five days in the second.
- If the worker illegally uses his position for personal gain.
- If the worker divulges industrial or commercial secrets related to the work.
Article (81) of the Saudi Labor Law
Based on Article (81) of the Saudi Labor Law.
Without prejudice to all his legal rights, the worker may leave his job without prior notice in any of the following cases:
- If the employer breaches its basic contractual or legal obligations to the worker.
- If the employer or his representative resorts to fraud at the time of hiring regarding the terms and conditions of work.
- If the employer assigns the worker, without his consent, a job fundamentally different from the one agreed upon and in violation of the provisions of article 60 of this law.
- If the employer, a member of his family or the responsible manager commits violent assault or unethical behavior against the worker or a member of his family.
- If the treatment of the responsible employer or manager was cruel, unfair or insulting.
- If there is a serious danger in the workplace that threatens the safety or health of the worker, provided that the employer is aware of it and has not taken the measures that indicate its removal.
- If the employer or his representative, due to his actions and especially due to his unfair treatment or violation of the terms of the contract, has made the worker appear as a terminating party to the contract.
Also Read: How to Calculate Overtime in Saudi Arabia