The Complete Guide to Final Settlement & Air Ticket in Saudi Arabia 2026
Leaving your job in Saudi Arabia is a major life transition. One of the most stressful parts is figuring out exactly what you are owed when your employment ends. Between End of Service Benefit, unpaid salary, unused leave days, and the air ticket home — the confusion adds up fast.
Welcome to the complete guide on Final Settlement and Air Ticket in Saudi Arabia for 2026. This guide covers everything you need to know: the legal basis under Saudi Labor Law Articles 76, 77, 78, 84, and 85, step-by-step calculation formulas, real-life examples, common mistakes, and how to claim what is rightfully yours.
Use our free Final Settlement Calculator to estimate your total dues instantly — including EOSB, unpaid salary, unused leave, and air ticket value.
What is Final Settlement in Saudi Arabia?
Final Settlement (also called "End of Service Settlement") is the total amount an employer must pay an employee when their employment contract ends — whether by resignation, termination, or contract expiry. It is governed by the Saudi Labor Law, specifically Articles 76, 77, 78, 84, and 85 of Royal Decree No. M/51.
Many expats confuse "Final Settlement" with "EOSB" (End of Service Benefit). While EOSB is the most significant component, the final settlement includes multiple items beyond just the gratuity. Understanding each component is critical to ensuring you receive every Riyal you are entitled to.
Legal Basis
- Article 76: Entitlement to annual leave and compensation for unused leave days upon termination.
- Article 77: Rules around notice period and termination procedures.
- Article 78: Employee rights when employer breaches contract terms.
- Article 84: EOSB calculation — half-month salary for first 5 years, full month salary per year thereafter.
- Article 85: Reduction rules for EOSB when employee resigns before contract end.
Components of Final Settlement (2026 Rules)
Your final settlement comprises up to five distinct components. Here is what each one means and how it is calculated:
1. End of Service Benefit (EOSB)
Calculated under Article 84 of Saudi Labor Law. This is the lump-sum gratuity payment based on your years of service and basic salary.
- First 5 years: Half a month of basic salary per year
- After 5 years: One full month of basic salary per year
- Partial years: Calculated proportionally
- Resignation: Reduction per Article 85 (0% under 2 years, 1/3 for 2-5 years, 2/3 for 5-10 years, 100% after 10 years)
2. Unpaid Salary
If you worked days in your final month that have not been paid yet, those days must be included. Formula: Monthly Salary ÷ 30 × Number of Unpaid Days.
3. Unused Annual Leave Pay
Under Article 76, any annual leave days you have not taken must be compensated. This includes leave accrued but not yet used.
Formula: (Monthly Salary ÷ 30) × Number of Unused Leave Days.
4. Air Ticket Entitlement
Employers must provide a one-way economy class ticket to your home country, or pay the cash equivalent. This applies to all expatriates on employment contracts.
- Typically includes employee only (family coverage depends on contract)
- Average value: 2,000 — 3,000 SAR depending on home country
- Applies to resignation and termination cases alike
5. Other Benefits
Depending on your contract, additional items may include: unpaid bonuses, commission payments, housing allowance arrears, transportation allowance, and any other contractual benefits that accrued but were not paid.
Air Ticket Rules in Detail
The air ticket entitlement is one of the most misunderstood aspects of final settlement. Here is a detailed breakdown of the rules:
Who is Eligible?
All expatriates working in Saudi Arabia under a valid employment contract are eligible for a one-way air ticket to their home country upon contract termination. This right is protected under Saudi Labor Law and standard Ministry of Human Resources regulations.
Does it Apply to Family Members?
The standard air ticket entitlement covers the employee only. Whether it extends to spouse and children depends entirely on your employment contract. Some companies include annual family tickets as part of the benefits package; others provide employee-only coverage. Check your contract carefully.
Cash Equivalent if Ticket is Not Provided
If the employer does not book the ticket directly, they must pay you the cash equivalent. The amount should reflect the actual cost of a one-way economy ticket to your home airport. In practice, many employers use an average rate between 2,000 and 3,000 SAR, but you can request a real quote from an airline as evidence.
Resignation vs Termination
Both resignation and termination typically entitle you to the air ticket benefit. However, if you are terminated for gross misconduct under Article 80, or if you abscond (Huroob), the employer may withhold the ticket. Always review your contract and consult with the Ministry if there is a dispute.
Step-by-Step Final Settlement Calculation Formula
Use this five-step method to calculate your exact final settlement:
- Step 1: Calculate EOSB
Full EOSB = (Basic Salary ÷ 2) × 5 + Basic Salary × (Years Beyond 5) + Proportional Partial Year. Then apply Article 85 reduction if resigning.
- Step 2: Add Unpaid Salary
Unpaid Salary = (Monthly Salary ÷ 30) × Unpaid Working Days.
- Step 3: Add Unused Leave Pay
Unused Leave Pay = (Monthly Salary ÷ 30) × Unused Leave Days.
- Step 4: Add Air Ticket Value
Actual ticket cost or cash equivalent (typically 2,000 — 3,000 SAR estimated average).
- Step 5: Total Final Settlement
Total = EOSB + Unpaid Salary + Unused Leave Pay + Air Ticket + Other Benefits.
Real-Life Calculation Examples
Example 1: Employee Resigns After 5 Years
Basic Salary: 12,000 SAR/month
Years of Service: 5 years
Unpaid Days: 10 days
Unused Leave Days: 15 days
Air Ticket: 2,500 SAR (estimated)
Step 1 — EOSB Calculation:
First 5 years: 5 × (12,000 ÷ 2) = 5 × 6,000 = 30,000 SAR
Article 85 (resignation at 5 years, 2-5 bracket): 1/3 of full EOSB
EOSB = 30,000 × 1/3 = 10,000 SAR
Step 2 — Unpaid Salary:
(12,000 ÷ 30) × 10 = 400 × 10 = 4,000 SAR
Step 3 — Unused Leave Pay:
(12,000 ÷ 30) × 15 = 400 × 15 = 6,000 SAR
Step 4 — Air Ticket:
2,500 SAR
Total Final Settlement:
10,000 + 4,000 + 6,000 + 2,500 = 22,500 SAR
Example 2: Employee Terminated After 8 Years
Basic Salary: 18,000 SAR/month
Years of Service: 8 years
Unpaid Days: 0 (fully paid)
Unused Leave Days: 20 days
Air Ticket: 3,000 SAR (cash equivalent)
Step 1 — EOSB Calculation (Termination = Full EOSB):
First 5 years: 5 × (18,000 ÷ 2) = 5 × 9,000 = 45,000 SAR
Years 6-8: 3 × 18,000 = 54,000 SAR
Total EOSB: 45,000 + 54,000 = 99,000 SAR
(No Article 85 reduction because employee was terminated)
Step 2 — Unpaid Salary:
0 days = 0 SAR
Step 3 — Unused Leave Pay:
(18,000 ÷ 30) × 20 = 600 × 20 = 12,000 SAR
Step 4 — Air Ticket:
3,000 SAR
Total Final Settlement:
99,000 + 0 + 12,000 + 3,000 = 114,000 SAR
Special Cases & Edge Scenarios
What if Contract Ends Naturally?
If your fixed-term contract expires and both parties do not renew, you are entitled to full EOSB (no Article 85 reduction), unpaid salary, unused leave pay, and air ticket. The same rules apply as with termination.
What if Employee Absconds (Huroob)?
If you abscond (Huroob), your employer can report you to the authorities. In most cases, absconding voids your right to EOSB and air ticket. You may still claim unpaid salary for days actually worked. Legal disputes in Huroob cases are common and often require labor court intervention.
What if Company Closes Down?
If the company closes or goes bankrupt, your final settlement is still legally owed. The Ministry of Human Resources can help enforce payment through the Wage Protection System (WPS) and bank guarantees. In bankruptcy cases, employee salaries and EOSB are priority claims.
Partial Year Calculations
Partial years are always calculated proportionally. For example, 6 months beyond 5 full years equals 0.5 × (annual EOSB rate) for that partial period. Unused leave is calculated day-by-day. Air ticket value remains the same regardless of when in the year you leave.
Disputes with Employer
If you disagree with the final settlement amount your employer provides, do not sign any settlement documents. Request a detailed breakdown in writing. If unresolved, file a case with the Labor Court or use the Qiwa platform for dispute resolution. The Ministry of Human Resources offers free mediation services.
Common Mistakes When Calculating Final Settlement
- Mistake 1: Forgetting Unused Leave Pay
Many expats leave without claiming compensation for unused annual leave days. Under Article 76, this is a separate entitlement from EOSB and can add thousands of Riyals to your settlement.
- Mistake 2: Not Including Air Ticket Value
The air ticket is a mandatory benefit for expats. If your employer does not book the ticket, you are entitled to a cash equivalent. Do not forget to include this in your final demand.
- Mistake 3: Using Total Salary Instead of Basic Salary for EOSB
EOSB is calculated on basic salary only — not total salary including allowances. Using total salary will overestimate your entitlement and lead to disappointment.
- Mistake 4: Not Checking Contract Terms
Your specific employment contract may include additional benefits or different rules. Always verify your contract language before calculating your final settlement.
How to Claim Your Final Settlement
- Step 1: Calculate your expected amount using our Final Settlement Calculator.
- Step 2: Submit a formal written request to HR or your employer with the detailed breakdown.
- Step 3: Negotiate if needed. Provide supporting evidence (contract, pay slips, ticket quotes).
- Step 4: If employer refuses or delays, file a complaint via Qiwa or visit the Ministry of Human Resources office.
- Step 5: As a last resort, file a case with the Labor Court. The process typically resolves within 2-4 weeks.
The standard payment timeline is 7 to 14 days from your last working day. Your employer is legally obligated to process the final settlement within this window. If the delay exceeds 30 days, penalties may apply to the employer.
How to Use the Sauditoolhub Final Settlement Calculator
Sauditoolhub Final Settlement Calculator
Our free calculator combines all five components of your final settlement into one simple tool. Enter your basic salary, years of service, unpaid days, unused leave days, and air ticket value — and get an instant estimate.
- Free — no registration required
- Instant results in seconds
- Includes EOSB, unpaid salary, unused leave, and air ticket
- Supports all 5 languages
- Private — no data saved
Frequently Asked Questions
What is included in a final settlement in Saudi Arabia?
A final settlement includes End of Service Benefit (EOSB), unpaid salary for remaining working days, unused annual leave pay, air ticket entitlement (one-way economy ticket to home country or cash equivalent), and any other contractual benefits like bonuses or commissions.
How is air ticket calculated in final settlement in Saudi Arabia?
The air ticket is typically a one-way economy class ticket to your home country. If the employer does not provide the ticket, they must pay a cash equivalent. The average value ranges from 2,000 to 3,000 SAR depending on your home country.
Do I get air ticket if I resign in Saudi Arabia?
Yes, air ticket entitlement is usually maintained regardless of whether you resign or are terminated, as long as you complete the probation period. However, check your employment contract as some employers include conditions for resignation cases.
Is unused leave paid in final settlement Saudi Arabia?
Yes, under Saudi Labor Law Article 76, you are entitled to compensation for unused annual leave days at a rate of your daily salary multiplied by the number of unused days. This is calculated as monthly salary divided by 30, multiplied by unused leave days.
How many days can employer take to pay final settlement in Saudi Arabia?
Under Saudi Labor Law, the employer must pay the final settlement within 7 to 14 days from the last working day. Delays beyond this period can result in penalties. If your employer delays unreasonably, you can file a complaint with the Ministry of Human Resources.
Does final settlement include housing allowance?
Housing allowance is included only in the calculation of unpaid salary and unused leave pay. It is generally not included in EOSB calculation, which is based on basic salary only. Always check your specific contract terms.
What if my employer refuses to pay final settlement?
If your employer refuses to pay, file a complaint through Qiwa or the Ministry of Human Resources. You can also approach the Labor Court. Saudi labor laws are pro-employee in this regard, and the ministry can enforce payment through bank transfer guarantees.
Can I get final settlement if I abscond (Huroob)?
If you abscond (Huroob), your employer may report you to the authorities. In most cases, absconding voids your right to EOSB and air ticket. You may still claim unpaid salary for days actually worked, but legal disputes are common in such cases.
Is EOSB and final settlement the same thing?
No. EOSB (End of Service Benefit) is one component of the final settlement. The final settlement is the total amount including EOSB, unpaid salary, unused leave pay, air ticket, and other benefits. EOSB is calculated under Article 84/85, while other components have separate rules.
How to calculate final settlement online in Saudi Arabia?
Use the Sauditoolhub Final Settlement Calculator at /final-settlement-calculator. It combines EOSB calculation, unpaid salary, unused leave days, and air ticket value into one comprehensive estimate. It is free, instant, and requires no signup.
Conclusion
Your final settlement in Saudi Arabia is more than just EOSB. Between unpaid salary, unused leave days, and the air ticket home, the total can be significantly higher than many expats expect. Understanding Articles 76, 84, and 85 of the Saudi Labor Law empowers you to negotiate confidently with your employer and ensure you receive every Riyal you are owed.
Bookmark our Final Settlement Calculator for instant estimates. Also explore our EOSB Calculator for gratuity-only calculations, Jawazat Fine Calculator for overstay fines, and the Family Visa Optimizer for dependents fee planning. Visit our Blog for more expat guides.
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