Saudi Labor Law – End of Service Benefits Explained
End‑of‑Service Benefits (ESB)—sometimes called gratuity or severance pay —are a mandatory lump‑sum payment every employer in Saudi Arabia must make to departing employees. Whether you are an expatriate or a Saudi national, understanding how ESB is calculated under Articles 84–87 of the Saudi Labor Law will help you plan your career moves, negotiate better packages, and ensure you leave a job with everything you are legally owed. 📌 Quick Facts About ESB Applies to all private‑sector workers —Saudi and expat alike. Paid in a lump sum on final settlement. Based on basic salary only , not allowances. Mandatory after two years of service (partial payouts may apply sooner). Governed by Articles 84–87 of Saudi Labor Law. 🧑⚖️ Who Is Eligible? Under Article 84 , ESB is due to any employee who: Completes at least two years of continuous service, or Leaves under special circums...