End of service benefit calculator (Saudi Labor Law) and GOSI explainer

Enter the last monthly wage, the years and months of service and how the contract ended. The calculator works the first five years at half a month's wage a year and every later year at a full month's wage, then applies the resignation share from Article 85 or the full award where Article 87 applies. It returns the amount in SAR. Nothing you type leaves your browser.

A worked example, for illustration only: a last wage of SAR 12,000 and six years of service ended by the employer gives five years at half a month, which is SAR 30,000, plus one year at a full month, which is SAR 12,000, for an award of SAR 42,000. The same worker resigning after six years is owed two thirds of that, SAR 28,000.

GOSI, the General Organization for Social Insurance, runs the Social Insurance Law. Its occupational hazards branch covers every worker regardless of nationality and is paid by the employer. Its annuities branch is compulsory for Saudi workers only. That nationality split is why a payroll with Saudi and non-Saudi staff has two different contribution calculations.

The contribution rates and the contributory wage band are set under the Social Insurance Law and published by GOSI, and they have been changing, so check the current figures on gosi.gov.sa. Under the Social Insurance Law in force from 3 July 2024, Saudis registered before that date stay at 21.5% in total (employer 11.75%, employee 9.75%). For Saudis first registered on or after it, annuities rise by 0.5 point per side each year until 2028. Occupational hazards is 2% paid by the employer for every worker, and unemployment insurance (SANED) applies to Saudis only.

GOSI contributions are a separate stream from the end of service award. The employer registers workers and remits contributions through GOSI's own services; Finbryn reconciles the amounts withheld and accrued in the ledger to what the payroll file and the remittance show, split by nationality.

Each pay run produces three liabilities that are easy to blur. Net pay goes out through the bank and the wage protection file on Mudad. The GOSI amounts are owed to GOSI. The end of service award is owed to the worker later, so it is an accrued provision that grows each month.

A clean set of books holds each in its own account, ties the payroll journal to the payroll file, and releases the provision when a worker leaves and the award is paid. Without that, the first leaver after a busy year turns up as an unplanned cash payment, and the year-end balance sheet understates what the business owes.

For the Zakat return the end of service provision is added back to the Zakat base as a liability to non-owners, so the same schedule serves both the accounts and the return preparation.