End-of-Service Benefits (EOSB) are a mandatory employee entitlement under Saudi Labour Law and represent one of the most important compliance obligations for employers operating in the Kingdom.
As Saudi Arabia continues to strengthen its digital labour ecosystem through platforms such as Qiwa and General Organization for Social Insurance (GOSI), businesses are expected to maintain accurate and transparent EOSB records throughout the employee lifecycle.
What Is EOSB Tracking?
EOSB tracking refers to the continuous monitoring and calculation of employee end-of-service entitlements based on:
- Years of service
- Last basic salary
- Contract type
- Salary changes
- Termination or resignation reason
Rather than calculating EOSB only at the end of employment, companies are expected to maintain ongoing records and accruals to ensure compliance and financial accuracy.
EOSB Rules Under Saudi Labour Law
Under Article 84 of the Saudi Labour Law:
- Employees are entitled to half a month’s basic salary for each of the first five years of service
- One full month’s salary is granted for each additional year after five years
- Partial years are calculated proportionally
Under Article 85, resignation scenarios may reduce entitlement:
| Service Period | Scenario | Entitlement |
| Less than 2 years | Resignation | No EOSB |
| 2–5 years | Resignation | One-third entitlement |
| 5–10 years | Resignation | Two-thirds entitlement |
| More than 10 years | Resignation | Full entitlement |
| Any period | Terminated by employer | Full entitlement* |
* Unless dismissal is due to serious misconduct.
Why EOSB Tracking Matters
Proper EOSB tracking helps businesses:
- Maintain labour law compliance
- Accurately forecast liabilities
- Reduce employee disputes
- Ensure payroll accuracy
- Prepare for audits and inspections
Without proper tracking, companies may face financial discrepancies, compliance risks, and labour claims.
The Role of Qiwa and GOSI
Qiwa is commonly used to:
- Validate contracts
- Confirm employment status
- Support labour dispute processes
Meanwhile, General Organization for Social Insurance (GOSI) serves as the official reference for:
- Registered salaries
- Service periods
- Employment verification
Because EOSB calculations are tied to the employee’s final registered basic salary, maintaining accurate GOSI records is essential.
What Employers Should Track
For effective EOSB management, businesses should continuously monitor:
- Basic salary history
- Years of service
- Contract details
- Salary adjustments
- Termination reasons
- Monthly EOSB accruals
Most companies manage this through integrated payroll systems supported by Qiwa and GOSI validation.
Final Thoughts
EOSB tracking in Saudi Arabia is no longer just an HR process — it is a critical compliance and financial governance function.
By maintaining structured and accurate EOSB records aligned with Saudi Labour Law, businesses can strengthen compliance, reduce risk, and ensure transparent employee management in an increasingly regulated labour environment.
