End-of-Service Benefits and GOSI When You Leave Saudi Arabia (2026)
Key takeaways
- The end-of-service award is a statutory right under Articles 84–88 of the Saudi Labour Law, not a bonus your employer can waive.
- The formula is half a month’s wage per year for the first five years, then one month’s wage per year thereafter, based on your last wage, with partial years paid pro rata.
- Resigning can reduce your award on a sliding scale (Article 85): nothing under two years, one third for 2–5 years, two thirds for 5–10 years, and the full amount after ten years.
- Certain situations (Article 87) give you the full award regardless — for example leaving for reasons of force majeure, or a female worker leaving within set periods after marriage or childbirth.
- Your employer must settle wages and entitlements within one week (employer termination) or two weeks (resignation) of the contract ending.
- As an expatriate you contributed to no GOSI pension scheme; only the employer-funded occupational-hazards branch applied, so there is generally no GOSI refund on departure.
What the end-of-service award is
The end-of-service award — also called end-of-service benefit, ESB, EOSB or “gratuity” — is a lump sum your employer must pay when your employment relationship ends. It is set out in the Saudi Labour Law, issued by Royal Decree No. M/51 and administered by the Ministry of Human Resources and Social Development (HRSD). It applies to Saudi and non-Saudi employees alike, and it is a legal entitlement rather than a discretionary gift. HRSD publishes the governing rules in its End-of-Service Award Regulations.
The award is calculated from your total years of continuous service with the same employer, including fractions of a year, which are paid in proportion to the time actually worked. It is a separate matter from GOSI, from any private savings or provident scheme your company may run, and from unused annual leave, which is paid out on top.
How the amount is calculated (Article 84)
Article 84 of the Labour Law sets the core formula. You are entitled to:
- Half a month’s wage for each of the first five years of service; and
- One full month’s wage for each year after the first five years.
So an employee who completes exactly five years is owed 2.5 months’ wage. Someone who completes ten years is owed 2.5 months (first five years) plus 5 months (years six to ten), for 7.5 months in total. The calculation uses your last wage, and the “wage” for this purpose is generally your basic salary plus regular allowances that form part of your contractual pay. Partial years are counted proportionally. HRSD offers an official end-of-service calculation service to help you check the figure, and the full text is in the Saudi Labour Law (Royal Decree M/51).
Resignation versus termination (Article 85)
How your job ends matters. If your employer terminates the contract (other than for the disciplinary reasons in Article 80), you receive the full award under Article 84. If you resign, Article 85 applies a sliding scale to the amount otherwise due:
- Less than two years’ service — no award;
- Two to five years — one third of the award;
- Five to ten years — two thirds of the award;
- Ten years or more — the full award.
This is one of the most misunderstood points among departing expatriates, so confirm before you hand in your notice whether you are resigning or whether the contract is ending by expiry or employer decision, because it can materially change what you take home. These reductions are set out in Article 85 of the Labour Law and summarised in the HRSD end-of-service regulations.
When resignation still pays the full award (Article 87)
Article 87 carves out exceptions where the Article 85 reductions do not apply and you receive the full award regardless of length of service. These include leaving employment for reasons of force majeure beyond your control, and specific circumstances connected with a female worker leaving within a set period after her marriage or after giving birth. If you believe one of these applies to you, raise it in writing with your employer, referencing Article 87 of the Labour Law.
When you must be paid (Article 88) and what else is owed
Article 88 sets firm deadlines for the final settlement. If the employer ends the contract, they must pay your wages and settle all entitlements within one week of the relationship ending. If you resign, the employer has up to two weeks. Alongside the end-of-service award, a proper final settlement should include any unpaid salary up to your last working day and payment for accrued but untaken annual leave. Keep copies of your contract, payslips, resignation or termination letter, and the final settlement statement — you may need them later for a home-country tax return or a labour claim. If your employer does not pay, you can raise a complaint through HRSD’s labour dispute channels at hrsd.gov.sa.
GOSI: what expatriates can and cannot claim
GOSI — the General Organisation for Social Insurance — runs Saudi Arabia’s social insurance. It is essential to understand that expatriates are treated very differently from Saudi nationals. Saudi employees are enrolled in the pension (annuities) branch and the unemployment scheme (SANED), with contributions deducted from their pay and matched by the employer. Expatriates are not.
For a non-Saudi employee, only the occupational-hazards branch applies. This is funded entirely by the employer at a rate of 2% of the contributable wage, and nothing is deducted from the expatriate’s own salary for it. Because you never paid into a pension or savings pot at GOSI, there is normally no GOSI lump sum, refund or pension to claim when you leave the Kingdom. The occupational-hazards branch is insurance against work injuries, disability and death while employed — not a retirement fund. This structure is described on the GOSI portal at gosi.gov.sa.
Reforms to Saudi social insurance that took effect in 2024–2026 mainly change contribution rates and retirement age for Saudi nationals; they do not turn the expatriate occupational-hazards cover into a refundable pension. So if a recruiter or colleague tells you to “claim your GOSI money” on the way out, be cautious — for most private-sector expatriates there is simply nothing of that kind to withdraw. The one thing worth doing is checking, via your employer or the GOSI portal, that any occupational-injury claim you had open is properly closed.
How Flyto can help
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Frequently asked questions
Is the end-of-service award compulsory, or can my employer refuse it?
It is a statutory right under the Labour Law, not optional. Unless you were dismissed for one of the specific disciplinary reasons in Article 80, your employer must pay it. See the HRSD End-of-Service Award Regulations.
How is the award calculated if I served, say, seven and a half years?
Half a month’s wage for each of the first five years (2.5 months) plus one month’s wage for each of the next two and a half years (2.5 months), totalling about 5 months’ wage on your last wage, per Article 84 of the Labour Law.
I am resigning after three years. Do I still get an award?
Yes, but reduced. For 2–5 years of service a resigning employee receives one third of the award under Article 85, unless an Article 87 exception applies.
How quickly must my employer pay my final settlement?
Within one week if the employer ends the contract, or within two weeks if you resign, under Article 88 of the Labour Law.
Do I get a GOSI refund or pension when I leave Saudi Arabia?
Normally no. As an expatriate you were only covered under the employer-funded occupational-hazards branch, not the pension scheme, so there is no personal GOSI pot to refund. See gosi.gov.sa.
Was GOSI ever deducted from my salary as an expat?
No. The 2% occupational-hazards contribution is paid entirely by the employer; nothing comes out of a non-Saudi employee’s pay, as explained by GOSI.
Sources
- Ministry of Human Resources and Social Development — End-of-Service Award Regulations
- Ministry of Human Resources and Social Development — Saudi Labour Law (Royal Decree M/51), Articles 84–88
- Ministry of Human Resources and Social Development — labour rights and dispute channels
- General Organisation for Social Insurance (GOSI) — contributions and branches
- GOSI — contribution rates and coverage