DOCUMENTSSAUDI ARABIA

KSA ESB Benefits Calculator | Saudi Arabia’s End-of-Service Benefits Calculator

KSA ESB Benefits Calculator | Saudi Arabia’s End-of-Service Benefits Calculator

Every Saudi Arabian employee is entitled to End of Service Benefits at the end of his or her employment term.

Calculator for ESB

This KSA ESB Benefits Calculator was created by the Saudi Arabian Ministry of Labor. https://laboreducation.mlsd.gov.sa/en/calc

Fill in the blanks with the following information:

  • The type of contract.
  • Your reason for being fired or resigning.
  • Total compensation.
  • Timeframe for service.

Who qualifies for ESB?

Any employee working in Saudi Arabia is eligible to end-of-service rewards, with the following three exceptions:

  • Employees who are employed but have not had their Iqama sponsorship transferred to them.
  • Employees that are on a business trip in the nation.
  • IT consultants, for example, are recruited on a consultancy basis.

Trending Now: 

Saudi Labor Law Article 80 (Termination without benefits).

What Happens If An RTGS Transaction Does Not Get Credited To Beneficiary Account?

In the case of a termination, the ESB is called.

The gratuity calculation is affected by whether or not an employee is terminated or resigned.

Under Saudi Labor Law article 84, an employee is entitled to the following end-of-service benefits in the case of termination:

  • For the first five years, each year of service is compensated with a half-salary.
  • You will be paid in full for each year you worked beyond the first five years.
  • Keep in mind that there is no right to ESB if an employee is fired under Saudi Labor Law Article 80.
Example

An employee was sacked after seven years of service with a company. His prior total remuneration was SR 10,000 per month.

The ESB is computed as follows for the first five years: 5 Years X 10,000 / 2 = 25,000.

For the next period, multiply 2 years by 10,000 to get 20,000 ESB.

In all, SR 45,000 was total.

In the event that you resign,

In the case of a resignation, there are seven different events that impact the computation of end-of-service pay.

See also  Employee can be terminated only if the investigative panel makes a unanimous judgement.

1- Failure to resign within two years = ZERO.

According to Saudi Labor Law Article 85, if an employee resigns within two years of his departure without complete his contract, he is not entitled to any end-of-service bonuses.

2- Resignation for a period of two to five years.

Article 85 of Saudi Labor Law applies if an employee resigns after two years but before completing five years of employment.

  • He’s eligible for a third of his ESB prize.
  • ESB Award: A half-pay. year’s
Example

An employee left a company after four years of service. His prior total remuneration was SR 10,000 per month. The screenshot below was taken from the KSA ESB Benefits Calculator discussed before.

The ESB is (10,000/2) X 4 X 1/3 = SR 6,667 for the first four years.

Trending Now: 

India and Saudi Arabia have signed an air bubble agreement that will take effect on January 1, 2022.

What Penalty Will You Have To Bear If You Don’t Link PAN With Aadhaar Number?

3– Resignation for a period of 5 to 10 years.

According to Saudi Labor Law Article 85, an employee who resigns after 5 years but before 10 years of service is entitled to the following benefits:

Two-thirds of his ESB prize was given to him.

ESB Award: Half-salary for the first five years, plus full pay for the following years.

Example

One employee quit from a company after seven years of service. His former total compensation was SR 10,000 per month.

  • (10,000/2) X 5 X (2/3) = SR 16,667 during the first 5 years
  • 10,000 X 2 X (2/3) = SR 13,333 ESB for the next period
  • 16,667 + 13,333 = Total SR 30,000

KSA ESB Benefits Calculator

4- Resignation after a ten-year period.

A worker who resigns after 10 years of employment will get his complete end-of-service benefits award, according to Saudi Labor Law Article 85.

  • You will be paid half of your yearly pay for the first five years.
  • You will be paid the entire pay for the next period.
See also  How to Cancel SIM Card Online 2022 in Saudi Arabia
Example

An employee left a company after 11 years of service. His prior total remuneration was SR 10,000 per month. The screenshot below was taken from the previously described KSA ESB Benefits Calculator.

  • (10,000/2) X 5 X (1/2) Equals SR 25,000 during the first five years.
  • ESB for the following period: 10,000 multiplied by six equals SR 60,000.
  • Total = SR 85,000 (25,000 + 60,000).

Trending Now: 

Motor insurance company must add VAT in third-party compensation, according to SAMA.

How Is UPI Different From IMPS?

5- At the end of the contract, resign.

If an employee resigns before the end of his contract, he is entitled to the full sum of his end-of-service benefits.

  • You will be paid half of your yearly pay for the first five years.
  • You will be reimbursed in full after the first five years.
  • In other words, the ESB will be calculated as if the employee had been sacked.
Example

After completing his two-year term with the firm, an employee quit before his next contract renewal. His prior total remuneration was SR 10,000 per month.

  • Benefits at the end of service: (10,000/2) X 2 = SR 10,000.

6- Resignation in accordance with Article 81.

Employees who resign under Article 81 of the Saudi Labor Law are still eligible for their full end-of-service benefits. The above-mentioned KSA ESB Benefits Calculator includes this computation.

7- Resignation in accordance with Article 87.

According to Saudi Labor Law Article 87, the following employees will also get a full ESB reward.

A female employee who quits her work after getting married within six months.

A female employee who resigns three months after becoming a mother.

See also  SUN & KAABA will be set in Straight on Thursday, called “zero shadow” | Equinox

An employee resigns due to a natural disability.

In the event that an employee passes away.

Trending Now: 

Iqama Transfer Through QIWA: Step by Step Procedure.

How To Tokenise Your Debit or Credit card?

What is the scope of the ESB?

All fixed benefits provided to an employee, such as; are included in the computation of end-of-service benefits, according to Saudi Labor Law.

  • The introductory salary.
  • Housing.
  • Transportation.
  • There is a Mobile Phone Allowance.
  • Benefits that are contingent on other factors are not specified, such as a sales incentive, a ticket allowance, or a bonus.

End-of-Service Benefits Payment

Article 88 of the Saudi Labor Law requires a Saudi employer to pay end-of-service benefits within the term provided.

  • You will be provided one week’s notice if your employment is terminated.
  • There will be a two-week grace period in the case of a resignation.

If the ESB is not paid within two weeks, the employee has the right to file a complaint with the Saudi Labor Court. In addition, if the ESB is delayed for more than two weeks, the employer will be fined SR 10,000.

Watch More: 

Gulf Tech & News Playlist.

Forgot Your SBI Profile Password? This Is How You Can Reset It

Furthermore, the Saudi Arabian Monetary Agency (SAMA) has said that banks do not have the authority to withhold end-of-service bonuses unless a judicial order allowing them to do so is obtained.

Domestic Worker’s ESB

According to Article 16 of Resolution 310 of the Council of Ministers dated 07/09/1434;

  • After four years of employment, a domestic worker is entitled to one pay.
  • The ESB award is three monthly payments for a housemaid or house driver who has worked for 12 years.
  • Resolution 310 is the source.

Unfortunately, the ESB for domestic employees was not calculated using the above-mentioned Saudi Arabian end-of-service calculation.

ismailsesa

Works as an in-house Writer at Gulf Tech Plus and focuses on the latest smart consumer electronics. Closely follows the latest trends in consumer IoT and how it affects our daily lives. You can follow him on Facebook, Instagram & YouTube.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button