End-of-Service Benefits in KSA: What an OFW Needs to Know
Date Posted: December 04, 2015
Overseas Filipino workers or OFWs, like any other expatriates, are entitled to the end-of service benefits or ESB in Saudi Arabia. This is, given that they meet the requirements to qualify.
Whether resigned or terminated, an OFW who served a minimum of two years in any company in the kingdom is eligible for an ESB. But of course, the computation will be different under the two situations.
If the OFW resigned:
If the OFW resigned after two years but less than five years (2-5 years), then he is eligible for 1/3rd of ESB. The percentage of the salary to be used on the computation will be half of the OFW’s salary.
If the OFW resigned after five years of service but is less than ten years (5-10 years), then he is eligible for 2/3rd of ESB. Percentage of the salary to be used on the computation will be his full salary.
If the OFW resigned from work, or the employer terminates him, after ten years (10+ years) of service in the company, he is eligible for full ESB and the salary percentage to be used is his full salary.
On the other hand, if the OFW was terminated:
If the OFW was terminated by the employer from the company before his five years of service, he is entitled for half of his salary.
If the OFW was terminated after his five-year service, half of the salary will be computed for the first five years. Full salary will be considered into computation after the five-year service.