The Saudi end-of-service formula explained for drivers, with worked examples for termination and resignation.
When you finish a job in Saudi Arabia you may be owed a lump sum called the end-of-service award (ESB or EOSB). For many drivers it's worth several months' pay. Here's how it's calculated for company drivers under the Saudi Labour Law.
The basic formula
- Half a month's wage for each of the first 5 years of service
- One full month's wage for each year after that
- Part-years are paid in proportion
It's calculated on your last wage, which normally means basic pay plus regular allowances such as housing and transport. Commissions and similar variable pay can be excluded if the contract says so.
Example 1: contract ended by the employer
A trailer driver worked 7 years. His last wage (basic + housing + transport) was SAR 4,000.
- First 5 years: 5 × ½ × 4,000 = SAR 10,000
- Next 2 years: 2 × 4,000 = SAR 8,000
- Total: SAR 18,000
If you resign
If you resign, you receive only part of the award:
- Less than 2 years: nothing
- 2 to 5 years: one third
- More than 5 and less than 10 years: two thirds
- 10 years or more: the full award
Example 2: resignation after 4 years
A company driver on SAR 3,000 resigns after 4 years.
- Full award: 4 × ½ × 3,000 = SAR 6,000
- One third for resignation: SAR 2,000
There are exceptions where a resigning worker gets the full award, for example when leaving because of force majeure.
House drivers are different
House drivers fall under the domestic worker regulation instead of the Labour Law. Under it, a domestic worker is entitled to one month's salary after four consecutive years with the same employer. Check your Musaned contract.
Protect your award
- Make sure your real salary and allowances are on your contract in Qiwa.
- Keep salary slips or bank statements.
- Get your final settlement in writing before you leave.
- If the employer refuses to pay, you can file a claim with the Ministry of Human Resources.
Looking for your next job? Browse driver jobs in Saudi Arabia, or read our Saudi driver salary guide.
Common questions
When must the employer pay my end-of-service award?
Final dues should be paid promptly when the contract ends. The labour law sets a time limit. If it's delayed, contact the Ministry of Human Resources.
Are overtime payments included?
Usually no. The calculation uses your last wage, meaning basic pay plus regular allowances, not irregular overtime.
What if I move to a new job with a transfer?
A transfer to another employer usually ends your service with the first employer, and the award is settled according to how the contract ended.
Can I use an online calculator?
Yes, as a guide. Make sure you enter your real last wage including regular allowances.
This guide is general information, not legal advice. Check the official Labour Law text or the Ministry of Human Resources for your case.
