End of Service Benefits Saudi Arabia: How to Calculate and Claim ESoB for a Deceased Worker
When an OFW dies in Saudi Arabia, the employer owes the family a final payout calculated under Article 84 of the Saudi Labor Law. This is the End-of-Service Benefit — often called ESoB or gratuity — and the employer must settle it within seven days.
Many families either don't know this exists or accept whatever number the employer offers without checking the math. The calculation is straightforward once you know the formula.
How ESoB Is Calculated
The gratuity is based on the worker's basic salary only — housing, transport, and food allowances are excluded.
| Years of Service | Rate per Year |
|---|---|
| First 5 years | Half a month's basic salary per year |
| Year 6 onward | One full month's basic salary per year |
When the worker dies, the full ESoB is owed regardless of who terminated the contract. Death is treated as end of service, and the employer cannot apply the reduced resignation rate.
Worked Example
A worker earned a basic salary of SAR 2,500 per month and worked for 7 years and 4 months.
- First 5 years: 5 × (2,500 ÷ 2) = SAR 6,250
- Next 2 years: 2 × 2,500 = SAR 5,000
- Remaining 4 months: (4 ÷ 12) × 2,500 = SAR 833
- Total ESoB: SAR 12,083 (approximately USD 3,200)
Domestic Workers Are Different
Domestic helpers (household service workers) follow a separate rule: they are entitled to ESoB only after four consecutive years of service, at a rate of one month's salary for every four years. This is significantly less generous than the standard labor law formula.
What Else the Employer Must Pay
The seven-day settlement period covers more than just the gratuity. The employer must also pay:
- All unpaid wages through the date of death
- Accrued, unused annual leave converted to cash
- Any overtime dues not yet paid
The employer cannot legally deduct recruitment fees, visa charges, or administrative costs from these amounts.
How Families Claim ESoB
For documented OFWs: The employer is supposed to transfer the final settlement to the next of kin's designated bank account or deposit it with the Migrant Workers Office (MWO) in Riyadh or Jeddah for disbursement to the legal heirs.
In practice, many employers delay or understate the amount. The family's leverage:
Contact the MWO immediately (Riyadh: +966-50-285-0944; Jeddah: +966-56-981-9720). The MWO monitors employer compliance and can escalate to the Saudi Ministry of Human Resources and Social Development.
Know the formula. If the employer's calculation looks low, ask for the computation breakdown. Check whether they used basic salary or total salary (they should use basic only, but some employers deliberately use total salary when it yields a lower number by backdating part of the pay as "allowances").
File a labor complaint. If the employer refuses to pay within seven days, the MWO or the Philippine Embassy can help file a complaint with the Saudi labor court. The court has jurisdiction to compel payment.
For undocumented workers: Recovery of employer dues is harder without a formal employment contract. The embassy and MWO can still assist and can explain what claims and documentation apply to the specific case.
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Common Employer Tactics
Deducting "penalties." Some employers try to subtract recruitment fees, visa charges, or administrative fines from the ESoB. Under the Saudi Labor Law, these are not deductible from the final settlement.
Claiming the worker resigned. Death is not resignation; the death settlement should be calculated under the applicable death and end-of-service rules rather than a resignation calculation.
Delaying payment beyond seven days. The seven-day deadline is in the law. Document every delay — the MWO uses these records to build the labor court case if needed.
ESoB Alongside Other Benefits
ESoB from the Saudi employer is separate from the Philippine-side benefits. The family can (and should) claim all of these simultaneously:
- OWWA death benefit (PHP 100,000–200,000)
- SSS death benefit and funeral benefit
- RA 10022 compulsory insurance (USD 10,000–15,000)
- DMW AKSYON Fund (up to PHP 100,000)
- GOSI occupational hazards (if work-related death)
The Philippines–Saudi bereavement guide includes an ESoB calculation worksheet and a demand letter template for sponsors who are slow to pay, alongside the step-by-step process for all six financial recovery programs.
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