🕌 Riyadh Gratuity Calculator 2026

EOSB calculation in Riyadh follows Saudi national labor law, same as all Saudi cities. Formula: (Basic Monthly Salary ÷ 30 days) × Days per year × Years of service. First 5 years: 15 days per year. After 5 years: 30 days per year. Example for Riyadh employee with SAR 10,000 basic salary for 6 years: First 5 years = (10,000 ÷ 30) × 15 × 5 = SAR 25,000. Year 6 = (10,000 ÷ 30) × 30 × 1 = SAR 10,000. Total = SAR 35,000 full EOSB. Only basic salary counts; housing, transport, and other allowances are excluded from calculation.

Average EOSB in Riyadh varies by position and tenure. Based on average Riyadh basic salary of SAR 12,000: At 3 years = SAR 18,000. At 5 years = SAR 30,000. At 7 years = SAR 42,000. At 10 years = SAR 120,000. Entry-level workers (SAR 6,000 basic) typically receive SAR 9,000-60,000 over career. Mid-level professionals (SAR 12,000-15,000 basic) receive SAR 18,000-150,000. Senior positions (SAR 20,000+ basic) can accumulate SAR 200,000+ over 10-year career. Remember these are full amounts; if you resign before 10 years, reductions apply.

For EOSB disputes in Riyadh: First, submit written request to employer with calculation. If no response within 7 days, file online complaint through MHRSD portal (mol.gov.sa) or Qiwa platform. Visit Riyadh Labor Office: Multiple branches across Riyadh including main office on King Fahd Road. Bring documentation: employment contract, salary certificates, bank statements, resignation acceptance. MHRSD will schedule conciliation meeting within 2-3 weeks. If unresolved, case moves to Labor Court in Riyadh. Most cases settle within 1-3 months. Labor court fees are minimal (SAR 100-500) and you can represent yourself or hire lawyer. EOSB claims are priority and strongly protected under Saudi law.

No, only BASIC SALARY counts for EOSB in Riyadh (and all of Saudi Arabia). Excluded allowances: housing allowance (typical SAR 2,000-5,000), transport allowance (SAR 500-1,500), mobile/communication allowance, food allowance, education allowance. Example: Total package SAR 18,000 breakdown: SAR 12,000 basic + SAR 4,000 housing + SAR 2,000 transport. EOSB calculated on SAR 12,000 only. This is why during Riyadh job negotiations, it's strategic to push for higher basic salary rather than higher allowances. A SAR 15,000 basic is worth more long-term than SAR 12,000 basic + SAR 3,000 allowances, even though total package is same.

Yes, especially in Riyadh's competitive job market. While employers cannot pay LESS than legal minimum EOSB, they can offer MORE. Common in Riyadh for: Senior positions (managers, directors, executives), Specialized roles (tech, engineering, medical), Competitive recruitment packages, Key retention agreements. Enhanced EOSB examples: "EOSB calculated at full rate even if you resign", "Additional 1-2 months salary as end-of-service bonus", "EOSB paid at 120% of legal requirement". Always get enhanced EOSB terms written in employment contract. Large Riyadh employers (major banks, tech companies, government contractors) more likely to offer enhanced packages. Negotiate during hiring, not later. In 2026, it's becoming common practice for senior roles in Riyadh.

Saudi Labor Law requires EOSB payment during final settlement, typically 7-14 days after last working day. In Riyadh's corporate environment: Large companies (banks, multinational corporations): Usually pay within 7 days via direct bank transfer. Medium companies: 7-14 days after completing exit clearance. Small businesses: Can take up to 2-3 weeks. Payment includes: Full EOSB amount, unused annual leave pay, final salary, any bonuses owed. If employer delays beyond 14 days without valid reason, you can immediately file MHRSD complaint. Riyadh labor offices typically resolve payment disputes quickly due to efficiency of capital city courts. Keep all documentation and calculate your own EOSB before leaving to verify employer's calculation is correct.

Calculate the trade-off specific to your situation. Example scenario in Riyadh: Current job: SAR 12,000 basic, 7 years completed, planning to leave. EOSB if stay to 10 years: (12,000 ÷ 30) × [(15 × 5) + (30 × 5)] = SAR 120,000. EOSB if leave now at 7 years with resignation: SAR 42,000 × 2/3 = SAR 28,000. Lost EOSB = SAR 92,000 over 3 years = SAR 30,667 per year. New offer: SAR 16,000 basic salary, similar company. Gain = SAR 4,000 × 12 = SAR 48,000 per year. Net gain = SAR 48,000 - SAR 30,667 = SAR 17,333 annual benefit. In this case, taking new job makes financial sense. However, consider: career growth, work environment, company stability, new EOSB starts from zero. Run your own numbers for your specific situation in Riyadh's market.

No, EOSB is NOT taxed in Saudi Arabia. The Kingdom has no personal income tax on salaries or EOSB for employees (Saudi nationals or expats). You receive the full calculated EOSB amount without any deductions for tax. This applies to all cities including Riyadh. However, employers may deduct: Outstanding loans or advances you took from company, Damages you caused (with proper documentation and proof), Notice period shortfall in some cases (if specified in contract). But there's no government tax on EOSB. If you're expatriate returning home, check your home country's tax rules - some countries may tax foreign income including EOSB when you repatriate funds, but Saudi Arabia itself doesn't tax it. This tax-free benefit makes EOSB even more valuable for Riyadh employees.