End-of-Service Benefits After Death in Saudi Arabia (EOSB)

What the Employer Owes

When a Pakistani worker dies in Saudi Arabia, the employer's financial obligations under Saudi Labour Law don't end with the repatriation of the body. The deceased worker's legal heirs are entitled to the full End-of-Service Benefits (EOSB), any unpaid salary, accrued unused leave pay, and — under Article 40 — the costs of preparing and repatriating the remains.

These obligations exist regardless of the cause of death. Whether the worker died of natural causes at home, in a traffic accident, or at the workplace, the employer must compute and disburse the EOSB. The only variable is timing: Saudi labour regulations require the final dues to be paid within two weeks of the termination of the employment contract.

How EOSB Is Calculated

The EOSB formula under Saudi Labour Law is straightforward:

• First five years of service: Half a month's wage for each year
• Each subsequent year: A full month's wage for each year
• Partial years: Pro-rated based on the fraction of the year served

"Wage" for EOSB purposes is the monthly wage used for the calculation; confirm the applicable wage basis in the employment record and employment contract.

Example calculation: A worker who earned 3,000 SAR per month (basic + housing) and served 8 years:

• First 5 years: 5 × (3,000 ÷ 2) = 7,500 SAR
• Remaining 3 years: 3 × 3,000 = 9,000 SAR
• Total EOSB: 16,500 SAR

In a death case, the employer must compute the outstanding EOSB under the formula above.

Additional Amounts Owed

Beyond the EOSB, the employer owes:

Unpaid salary — All wages earned but not yet paid at the time of death, including partial-month pay. The research specifically identifies accrued wages for domestic workers as preferential debts; document unpaid wages in the final settlement.

Accrued leave — Unused annual leave days, converted to their cash equivalent based on the daily wage rate.

Repatriation costs — Under Article 40, the employer covers the 5,000 SAR government embalming fee, the shipping coffin, and airline cargo charges for repatriation. The employer is exempt only if the family consents to local burial or GOSI covers repatriation as part of an occupational hazard claim.

Return of personal documents — The employer must release the deceased's passport, any certificates or educational documents held by the company, and the original employment contract.

Domestic Workers: Different Rules

Housemaids, private drivers, gardeners, and home agricultural workers are not covered by the standard Saudi Labour Law. They fall under the Regulation for Domestic Workers and Those in Similar Positions, which has different (generally weaker) protections.

Under these rules, the domestic employer must still complete body shipment procedures upon a worker's death, and any accrued wages are treated as preferential debts. However, the EOSB calculation and leave entitlements follow the domestic worker regulation rather than the general labour law, and the enforcement mechanisms are different.

When the Employer Refuses to Pay

This is not uncommon. Some employers attempt to offset the EOSB against alleged debts (visa fees, recruitment costs, housing deposits), withhold payment pending resolution of "pending matters," or simply stop responding to the family's representative.

The recovery path depends on the family's authorization structure and willingness to pursue formal channels:

Step 1: Community Welfare Attaché intervention. The Welfare Attaché at the Pakistani Embassy or Consulate can contact the employer directly and demand compliance with Article 40 and EOSB obligations. This informal intervention resolves many cases, particularly when the employer is a large company with an HR department that understands the legal exposure.

Step 2: Ministry of Human Resources amicable settlement. The representative files a formal complaint through the Ministry of Human Resources and Social Development's electronic portal (Wadi). The ministry's amicable-settlement process is the step before a Labour Court filing.

Step 3: Labour Court filing. If mediation fails, the case moves to the Saudi Labour Courts. The representative must have a properly attested Special Power of Attorney that explicitly authorizes court representation. Labour Court proceedings are conducted in Arabic, and the representative may need a qualified labour lawyer.

Critical protection: The employer cannot use the EOSB to offset residency or visa fees. Saudi labour rules explicitly prohibit this, and any deduction for these items can be challenged through the Labour Court.

Securing the Payment

The representative must have these documents ready to claim the EOSB:

• Official Saudi death certificate
• Attested Power of Attorney from the heirs
• Copy of the employment contract (if available — the employer is required to have a copy)
• The deceased's last three salary slips or bank statements showing salary deposits
• Iqama copy showing the employment relationship

The payment should be directed to a bank account specified by the heirs through their authorized representative. The employer should not be allowed to pay in cash without a formal receipt — undocumented payments cannot be proven later if a dispute arises.

The Pakistani Dies in Saudi Arabia — Family Guide covers the complete EOSB claim process, including the escalation pathway from informal embassy intervention through Labour Court, with the specific documents and POA clauses required at each stage.