End-of-service Benefits Not Paid in Saudi Arabia: What Workers Can Do

Last reviewed: 14 June 2026

When end-of-service benefits are not paid in Saudi Arabia, employees face both financial hardship and legal uncertainty about how to recover what they are owed. The end-of-service gratuity, known locally as mukafa’at nihayat al-khidma, is a mandatory entitlement under Saudi Labour Law, yet delayed or withheld final settlements remain one of the most common employment disputes I encounter at Faisal A. Siddiqui Law Firm. Whether your employer is disputing the amount, stalling on payment, or refusing outright, there is a clear sequence of steps you can follow: calculate your entitlement using the official HRSD calculator, gather your evidence, file an administrative complaint through Qiwa, and, if necessary, escalate to the Labour Court. This guide walks you through every stage.

Quick steps if your end-of-service benefits are unpaid:

1. Collect evidence (contract, pay slips, termination letter)
2. Calculate your entitlement using the HRSD/Qiwa calculators
3. Attempt internal resolution with your employer’s HR department
4. File an administrative complaint via Qiwa / HRSD
5. Escalate to the Labour Court if mediation fails
6. Seek enforcement of any judgment awarded

What Are End-of-Service Benefits and Who Is Entitled?

End-of-service benefits (EOSB) are a statutory severance payment that every employer in Saudi Arabia must pay to an employee when the employment relationship ends. The entitlement applies regardless of nationality, Saudi nationals and expatriate workers alike are covered, and it arises on termination, resignation, contract expiry, or retirement. The legal foundation sits in the Saudi Labour Law, and the Ministry of Human Resources and Social Development (HRSD) provides the authoritative guidance on how entitlements are calculated and enforced.

Eligibility depends on the nature of the contract and the reason the employment ended. In general terms, employees who complete at least two years of continuous service are entitled to at least a partial gratuity. Those who are dismissed without cause or whose fixed-term contracts expire receive a full gratuity. Employees who resign may receive a reduced entitlement depending on how many years they served. Domestic workers are governed by separate regulations and may have different entitlement structures.

Key Statutory Points to Check

• Full entitlement on employer-initiated termination. If the employer terminates the contract (other than for listed misconduct grounds), the employee receives the full calculated gratuity.
• Partial entitlement on resignation. An employee who resigns after two but before five years of service typically receives one-third of the gratuity. After five but before ten years, two-thirds apply. After ten or more years, the employee is entitled to the full amount.
• Forfeiture in misconduct cases. Employers may withhold the gratuity entirely only in specific circumstances, such as serious misconduct listed in the Labour Law. In my experience, employers frequently overreach here, claiming misconduct where the facts do not support it.
• Contract type matters. Fixed-term contracts that expire without renewal entitle the employee to a full gratuity. Indefinite contracts follow the same calculation formula but are subject to the resignation-reduction rules above.

How End-of-Service Benefits Are Calculated

Understanding how to calculate your unpaid gratuity in Saudi Arabia is the essential first step before filing any complaint. The statutory formula, confirmed by both the HRSD end-of-service calculator and Qiwa’s employee guidance, is straightforward.

For the first five years of service, the employee earns half a month’s wage for each year. For every year beyond five, the employee earns one full month’s wage per year. The wage used for calculation is the last basic wage (including housing and transport allowances if they form part of the contractual basic wage).

Worked Example 1: Three-Year Employee

An employee with a monthly basic wage of SAR 6,000 who has served three years and is terminated by the employer:

• Gratuity = 0.5 × 6,000 × 3 = SAR 9,000

Worked Example 2: Eight-Year Employee

An employee with a monthly basic wage of SAR 8,000 who has served eight years and is terminated by the employer:

• First 5 years: 0.5 × 8,000 × 5 = SAR 20,000
• Remaining 3 years: 1.0 × 8,000 × 3 = SAR 24,000
• Total gratuity = SAR 44,000

I always recommend cross-checking your own calculation against the official end-of-service calculator on the HRSD website. Discrepancies between what the employer offers and what the calculator produces are often the strongest evidence in a complaint.

Remember that fractions of a year are calculated proportionally. If you worked seven years and four months, the four months count as four-twelfths of a year in the post-five-year bracket.

Common Reasons End-of-Service Benefits Are Not Paid

From what I see in practice, employers withhold or delay final settlements for several recurring reasons:

• Disputed reason for termination. The employer claims the employee resigned, while the employee says they were dismissed, each characterisation changes the entitlement amount.
• Alleged misconduct. The employer invokes a serious-misconduct ground to deny the gratuity entirely, even when the facts are thin.
• Employer insolvency or cash-flow problems. The company cannot pay and delays indefinitely.
• Payroll errors and incorrect calculations. Allowances are wrongly excluded from the basic wage, or years of service are under-counted.
• Intimidation or administrative delay. Some employers stall in the hope the employee, particularly an expatriate who has already left the Kingdom, will abandon the claim.

Red Flags for Employees

• No written termination or acceptance-of-resignation letter issued
• Payroll records or pay slips are missing or incomplete
• The employer offers a vague payout timeline without a written commitment
• Your final settlement statement shows a significantly lower figure than the HRSD calculator result

Immediate Steps to Take if Your End-of-Service Benefits Are Unpaid

Knowing how to claim end-of-service benefits in Saudi Arabia requires a structured approach. Below is the action plan I recommend to every client whose final settlement has been withheld.

Step 1, Gather Evidence

Before you contact anyone, compile every document you have:

• Employment contract (original and any amendments)
• Recent pay slips (at least the last 12 months)
• Resignation letter or termination letter
• Attendance records and leave balances
• Bank statements showing salary deposits
• Any written communication with HR about your exit or settlement

Store digital copies securely. If your employer has not issued a termination letter, note the date you were verbally told your employment was ending and any witnesses present.

Step 2, Calculate Your Entitlement and Document Discrepancies

Use the HRSD calculator or the Qiwa calculator to determine exactly what you are owed. Write down both the employer’s offer (if any) and the calculator result, and note the difference.

Step 3, Try Internal Resolution

Send a formal written request to your employer’s HR department. Keep the tone professional but clear. A sample email might read:

“Dear [HR Manager], my employment ended on [date]. As of today, I have not received my end-of-service gratuity. Based on the statutory formula and [X] years of service at a last basic wage of SAR [amount], my entitlement is SAR [amount]. I respectfully request that this amount be settled within seven days. I have attached my contract, final pay slip, and the HRSD calculator result for reference.”

Step 4, File an Administrative Complaint

If internal resolution fails, file a labour complaint through the Qiwa platform or directly with HRSD. The administrative complaint triggers a mediation process. In my experience, many disputes are resolved at this stage because employers face regulatory consequences for non-compliance.

How to File a Complaint with Qiwa / HRSD, Step by Step

If your final settlement is withheld and direct negotiation has failed, filing a Qiwa complaint for end-of-service benefits is the next step. The process is designed to be accessible, even without a lawyer.

1. Log in to the Qiwa platform using your Absher credentials.
2. Navigate to the labour dispute or complaint section and select the option to file a new complaint.
3. Enter your employer’s details (company name, commercial registration number) and your employment dates.
4. Describe the dispute, state clearly that your end-of-service benefits have not been paid, the amount you are claiming, and the date your employment ended.
5. Upload supporting documents, attach your contract, pay slips, termination letter, and HRSD calculator result.
6. Submit and note the complaint reference number.

Once filed, the ministry will typically attempt to mediate between you and the employer. If the employer does not respond or refuses to pay, the complaint can be escalated to the Labour Court.

What to Write in Your Complaint

Keep it concise and factual. A strong complaint states: the employment start and end dates, the reason for termination, the last basic wage, the total gratuity calculated, the amount received (if any), and the shortfall. Avoid emotional language, focus on the numbers and the statutory entitlement. Reference the HRSD calculator result where possible.

If the Administrative Route Fails, Legal Options and Likely Timelines

When mediation through Qiwa or HRSD does not produce a result, you have the right to file a case directly with the Labour Court. In my practice, I advise clients to instruct a lawyer at this stage because the procedural requirements, statements of claim, evidence presentation, and hearing attendance, are more demanding than the administrative process.

The Labour Court can order the employer to pay the full gratuity, outstanding wages, and any other contractual entitlements. Judgments are enforceable through the Execution Court, which can attach the employer’s bank accounts, freeze assets, or refer the matter for bankruptcy proceedings if the employer is insolvent.

Evidence Standard and Typical Judge Concerns

Labour Court judges focus on the employment contract, proof of service duration, the last wage, and the reason for termination. The strongest cases present the HRSD calculator result alongside bank statements showing no payment was received. Where the employer claims misconduct, the burden typically falls on the employer to prove that the specific statutory grounds for forfeiture were met. In my experience, judges scrutinise these claims carefully and frequently rule in the employee’s favour when documentation is weak on the employer’s side.

Employer Obligations and HR Checklist to Avoid Liability

For HR managers and in-house counsel, preventing end-of-service benefit disputes is far less costly than defending them. At Faisal A. Siddiqui Law Firm, we regularly advise employers on the following compliance checklist:

• Pay final settlement promptly. The employer should clear all entitlements, including the gratuity, unpaid salary, and accrued leave, as soon as the employment relationship ends.
• Issue a detailed final payslip. Break down every component: basic wage used, years of service credited, gratuity calculation, leave encashment, and any deductions.
• Document the reason for termination. A written termination letter protects both parties and reduces disputes over whether the employee resigned or was dismissed.
• Use the HRSD calculator. Cross-check your internal calculation with the official tool before presenting the final settlement to the employee.
• Retain records. Keep employment contracts, pay slips, and termination documentation for at least five years after the end of the employment relationship.

Practical Templates for Employees

Template A, Email to HR Requesting Final Settlement

Subject: Request for Immediate Payment of End-of-Service Benefits, [Your Name]

Dear [HR Manager/Director],

My employment with [Company Name] ended on [date]. To date, I have not received my end-of-service gratuity or final settlement. Based on my [X] years and [Y] months of continuous service and a last basic wage of SAR [amount], my entitlement under Saudi Labour Law is SAR [amount], as confirmed by the HRSD calculator. I attach my employment contract, most recent pay slips, and the calculator result. I kindly request that payment be made within seven days. I reserve my right to file a formal complaint with the Ministry of Human Resources should this matter remain unresolved.

Template B, Administrative Complaint (Fields and Attachments)

• Employee details: Full name, Iqama/National ID number, mobile number, email
• Employer details: Company name, commercial registration number, city
• Claim description: “End-of-service gratuity not paid. Employment from [start date] to [end date]. Last basic wage: SAR [amount]. Total entitlement per HRSD calculator: SAR [amount]. Amount received: SAR [amount or nil]. Shortfall: SAR [amount].”
• Attachments: Employment contract, termination/resignation letter, last three pay slips, bank statement, HRSD calculator screenshot

Risks, Penalties and Practical Enforcement Tips

Employers who fail to pay end-of-service benefits face real consequences. HRSD has the authority to impose administrative fines and can restrict an employer’s ability to issue or renew work permits, a significant operational penalty for companies that rely on expatriate workers. In cases of prolonged and deliberate non-payment of wages, the matter may be referred for criminal investigation.

For expatriate employees who have already left Saudi Arabia, enforcement can be more challenging but is not impossible. Labour Court judgments remain enforceable, and bank attachment orders can be executed against the employer’s accounts within the Kingdom. I advise expatriate clients to file their complaints before departing where possible, or to appoint a legal representative to act on their behalf.

One practical tip: if you are an expatriate and your employer is pressuring you to sign a final settlement waiver for less than your entitlement as a condition of exit, do not sign it. Seek legal advice first. Waivers obtained under duress can be challenged, but preventing the problem is always better than litigating it afterwards.

Taking Action When End-of-Service Benefits Are Not Paid in Saudi Arabia

If your end-of-service benefits are not paid in Saudi Arabia, you are not without options. The law is clearly on the side of the employee, and the administrative and judicial systems provide real remedies, from Qiwa mediation to Labour Court enforcement. The key is to act promptly: collect your evidence, calculate your entitlement using the official tools, try to resolve the matter directly, and escalate without hesitation if your employer does not respond. In my view, the employees who succeed are almost always those who document everything from day one and seek qualified legal advice early rather than late. An experienced employment litigation lawyer can significantly shorten the timeline and increase the likelihood of full recovery.

Sources

1. Ministry of Human Resources & Social Development (HRSD), End-of-Service Benefit Calculator
2. Qiwa, How to Calculate Your End-of-Service Benefits
3. https://lawyersiddiqui.com/en/insights/labor-disputes-guide