1. What is End Of Service Benefits?

End Of Service Benefits (ESB) is a financial compensation paid to employees upon termination of their employment contract. It's calculated based on the employee's salary and years of service.

2. How Does the Calculator Work?

The calculator uses the ESB formula:

Where:

• \( Salary \) — Monthly salary in SAR
• \( Service Years \) — Total years of service
• First 5 years — Calculated at half salary
• After 5 years — Calculated at full salary

Explanation: The first 5 years of service are compensated at half the monthly salary rate, while any years beyond 5 are compensated at the full monthly salary rate.

3. Importance of ESB Calculation

Details: Accurate ESB calculation is crucial for both employers and employees to ensure fair compensation upon termination of employment. It helps in financial planning and ensures compliance with labor laws.

4. Using the Calculator

Tips: Enter monthly salary in SAR and total years of service. Partial years can be entered as decimals (e.g., 3.5 for 3 years and 6 months).

5. Frequently Asked Questions (FAQ)

Q1: Is ESB calculated differently for different employment types?
A: Yes, calculation methods may vary based on contract type (limited vs unlimited) and termination reason. This calculator provides a general estimate.

Q2: Are there any maximum limits on ESB?
A: Some labor laws may cap the total ESB amount. Check local regulations for specific limits.

Q3: How are partial years calculated?
A: Partial years are calculated proportionally. For example, 6 months would be 0.5 years in the calculation.

Q4: Is this calculation applicable worldwide?
A: This follows a common ESB calculation method, but local labor laws may have different requirements.

Q5: Does this include other end-of-service entitlements?
A: No, this calculates only the basic ESB. Other entitlements like unused leave may be calculated separately.