EOSB = Compensation paid to employees when they leave the company due to resignation, retirement, or termination. Required by Saudi Labour Law (Article 84–87)
All employees (Saudi & expat) with ≥2 years of service Applies to both fixed-term & unlimited contracts Exceptions: Dismissal for gross misconduct
2. Who Qualifies for EOSB?
Formula: Half-month salary × first 5 years Full-month salary × years after 5 Salary = basic wage (no allowances)
< 2 years: No EOSB 2–5 years: 1/3 of amount 5–10 years: 2/3 of amount > 10 years: Full EOSB Special clauses apply to women & retirement
Underpayment = lawsuits Delays = reputational damage Overpayment = financial loss Automate EOSB with full accuracy
Zimyo auto-calculates EOSB based on Saudi labor law, contract type, and tenure — zero manual errors.