1. What is End Of Service Benefits?

End Of Service Benefits (ESB) is a financial compensation provided 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 Saudi Riyals (SAR)
• \( Service Years \) — Total years of service

Explanation: For the first 5 years of service, the employee receives half their monthly salary for each year. For service years beyond 5, they receive their full monthly salary for each additional year.

3. Importance of ESB Calculation

Details: Accurate ESB calculation ensures fair compensation for employees and helps employers budget for termination costs.

4. Using the Calculator

Tips: Enter monthly salary in SAR and total years of service. All values must be valid (salary > 0, service years > 0).

5. Frequently Asked Questions (FAQ)

Q1: Are partial years of service counted?
A: Yes, partial years are typically counted proportionally (e.g., 5.5 years would be calculated accordingly).

Q2: Is there a maximum limit for ESB?
A: Some labor laws may impose maximum limits, but this calculator follows the standard formula without artificial limits.

Q3: Does the salary include bonuses?
A: Typically, ESB is calculated based on basic salary, but local labor laws may specify what components to include.

Q4: What if the employee resigns voluntarily?
A: ESB eligibility and calculation might differ in case of voluntary resignation depending on local labor laws.

Q5: Are there tax implications for ESB?
A: Tax treatment varies by jurisdiction. Consult with a local tax professional for specific advice.