GCC Payroll Operations
8 minSaudi EOSB vs UAE EOSB — Why the Formulas Are Different and Both Matter
Saudi Arabia
UAE
Quick answer
UAE end of service benefit is 21 days of basic salary per year for the first 5 years and 30 days per year thereafter, on the basic salary at the time of exit. Saudi end of service benefit is half a month's salary per year for the first 5 years and one full month per year thereafter, based on the last drawn basic salary. The formulas look similar but produce different payouts, and the 'last drawn' reference in Saudi creates a salary-bump trap that the UAE formula does not.
UAE EOSB uses 21/30 days on basic salary. Saudi uses half/full month on last drawn basic. Both matter if you operate in both markets.
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