--- title: Severance Pay vs. End-of-Service Benefits in the GCC & Saudi Arabia description: The difference between severance pay and end-of-service benefits (gratuity) in the GCC and Saudi Arabia. 2025 guide to ESB, payout rules, and eligibility. image: https://lh7-rt.googleusercontent.com/docsz/AD_4nXdmvozZ6CnnXrHTVCdNnSWoo-ltDfEMhZTEFVZd2vCvpu-b8ZJDpSoUWn2X3GDRkGkqsVNGyi-E5iQAwZcgqg-hbj_annpZ0QiUutrdWmTT9jZAJc3zUF45t6YBYlA7Qs-eTHViog?key=AKJM30W5xhZ3qcd71pucYQ --- [![ZenHR Logo](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/692c23776fa13080da88bb57_logo-dark.svg) ![ZenHR Logo](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/692c23776fa13080da88bb57_logo-dark.svg) ZenHR Logo](https://www.zenhr.com/en) Menu button - ZenHR Software [All Modules](https://www.zenhr.com/en/modules) [Payroll](https://www.zenhr.com/en/modules/payroll) [Time Management](https://www.zenhr.com/en/modules/attendance-and-time-tracking) [Employee and Manager Self-Service (ESS & MSS)](https://www.zenhr.com/en/modules/employee-self-service) [Employee Management](https://www.zenhr.com/en/modules/employee-management) [Performance Evaluation](https://www.zenhr.com/en/modules/performance-and-evaluation) [Reporting & Analytics](https://www.zenhr.com/en/modules/reporting-and-analytics) [ZenATS Applicant Tracking System (ATS)](https://www.zenhr.com/en/modules/applicant-tracking-system) [Earned Wage Access (ZenEWA)](https://www.zenhr.com/en/earned-wage-access-zenewa) [Mobile App](https://www.zenhr.com/en/mobile) [HR Software for Construction Companies](https://www.zenhr.com/en/construction-industry) [HR Software for IT Companies](https://www.zenhr.com/en/it-industry) [HR Software for F&B Companies](https://www.zenhr.com/en/food-and-beverage-industry) [HR Software for Retail Companies](https://www.zenhr.com/en/retail-industry) [HR Software for Real Estate Companies](https://www.zenhr.com/en/real-estate-industry) [HR Software for Enterprise Companies](https://www.zenhr.com/en/enterprise-hr-software) - Resources [Blog](https://blog.zenhr.com/en) [White Papers](https://www.zenhr.com/en/whitepapers) [FAQs](https://www.zenhr.com/en/faqs) [HR Terms Glossary](https://www.zenhr.com/en/glossary) [HR Case Studies](https://www.zenhr.com/en/hr-case-studies) [Service Termination Calculator](https://www.zenhr.com/en/service-termination-calculator) [UAE Gratuity Calculator](https://www.zenhr.com/en/uae-gratuity-calculator) [Salary Calculator](https://www.zenhr.com/en/salary-calculator) [Tax Calculator](https://www.zenhr.com/en/tax-calculator) [HR Letters and Templates](https://www.zenhr.com/en/hr-letters-templates) [Knowledge Base](https://zenhrsolutions.freshdesk.com/en/support/home) [Developer API](https://www.zenhr.com/en/api-documentation) - About Us [About Us](https://www.zenhr.com/en/about) [ZenHR's Awards](https://www.zenhr.com/en/awards) [Testimonials](https://www.zenhr.com/en/testimonials) [Partner with Us](https://www.zenhr.com/en/partners) [Join our Team](https://careers.zenhr.com/en/careers_page) [Refer Companies to ZenHR](https://www.zenhr.com/en/referral-program) - Marketplace [All Integrations](https://www.zenhr.com/en/marketplace-integration) [Almatar](https://www.zenhr.com/en/marketplace-integration/almatar) [Altibbi](https://www.zenhr.com/en/marketplace-integration/altibbi) [Classera](https://www.zenhr.com/en/marketplace-integration/classera) [Ejari](https://www.zenhr.com/en/marketplace-integration/ejari) [General Organization for Social Insurance (GOSI)](https://www.zenhr.com/en/marketplace-integration/general-organization-for-social-insurance-gosi) [LinkedIn](https://www.zenhr.com/en/marketplace-integration/linkedin) [Microsoft Dynamics 365 Finance & Operations](https://www.zenhr.com/en/marketplace-integration/microsoft-dynamics-365-finance-operations) [Mudad](https://www.zenhr.com/en/marketplace-integration/mudad) [Muqeem](https://www.zenhr.com/en/marketplace-integration/muqeem) [NetSuite](https://www.zenhr.com/en/marketplace-integration/netsuite) [Odoo](https://www.zenhr.com/en/marketplace-integration/odoo) [QuickBooks](https://www.zenhr.com/en/marketplace-integration/quickbooks) [SAP Business One](https://www.zenhr.com/en/marketplace-integration/sap-business-one) [SAP ByDesign](https://www.zenhr.com/en/marketplace-integration/sap-bydesign) [Slack](https://www.zenhr.com/en/marketplace-integration/slack) [Tameeni](https://www.zenhr.com/en/marketplace-integration/tameeni) [Xero](https://www.zenhr.com/en/marketplace-integration/xero) [ZenATS Applicant Tracking System (ATS)](https://www.zenhr.com/en/marketplace-integration/zenats) [ZKTeco](https://www.zenhr.com/en/marketplace-integration/zkteco) [Zoom](https://www.zenhr.com/en/marketplace-integration/zoom) [Let's Meet!](https://www.zenhr.com/en/schedule-meeting) [العربية](https://blog.zenhr.com/ar) [Login](https://www.zenhr.com/en/log-in) [Request Demo](https://www.zenhr.com/en/request-demo?utm_source=ZenHR%20Blog&utm_medium=Referral&utm_campaign=Demo%20Request&utm_term=ZenHR%20Blog%20Navigation%20Bar) # Severance Pay vs. End-of-Service Benefits in the GCC & Saudi Arabia By [Amanee Hasan](https://blog.zenhr.com/en/author/amanee-hasan) on 27 August 2025 [UAE Compliance](https://blog.zenhr.com/en/tag/uae-compliance) [Saudi Arabia (KSA)](https://blog.zenhr.com/en/tag/saudi-arabia-ksa) [Back to Main Blog](https://blog.zenhr.com/en) **![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXdmvozZ6CnnXrHTVCdNnSWoo-ltDfEMhZTEFVZd2vCvpu-b8ZJDpSoUWn2X3GDRkGkqsVNGyi-E5iQAwZcgqg-hbj_annpZ0QiUutrdWmTT9jZAJc3zUF45t6YBYlA7Qs-eTHViog?key=AKJM30W5xhZ3qcd71pucYQ)** # **Severance Pay vs. End-of-Service Benefits: What's the Difference in the GCC and Saudi Arabia?** Confused about severance, end-of-service benefits, or gratuity? Here’s a 2025 guide to understanding the differences under GCC and KSA labor laws. If you work in the Gulf region, you've probably heard the terms ***"severance pay", "end-of-service benefits" (ESB),*** *and* ***"gratuity"*** used interchangeably. But are they the same thing? ***But, they’re not.*** In the GCC, and especially in Saudi Arabia (KSA), the differences between severance and ESB are critical to understand for both employers and employees. Each comes with unique legal requirements, eligibility rules, and financial implications. In this 2025 guide, you’ll learn the key differences between severance pay and end-of-service benefits, how they’re calculated, and when each applies in countries like Saudi Arabia, the UAE, Qatar, and more.   ## **Table of Contents** 1. [What Are End-of-Service Benefits (ESB)?](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#what-are-end-of-service) 2. [What Is Severance Pay?](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#what-is-severeance-pay) 3. [Key Differences Between Severance and ESB](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#Key-dif-between) 4. [Is Gratuity the Same as ESB?](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#is-gratuity-the-same) 5. [How End-of-Service Benefits Work in Saudi Arabia](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#how-end-of-service) 6. [Severance and ESB in Other GCC Countries](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#severance-esb-in-other) 7. [FAQ: What People Also Ask](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#faq) 8. [Final Thoughts](https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia#final-thoughts) ## **What Are End-of-Service Benefits (ESB)?** End-of-service benefits (often called **gratuity**) are a **statutory entitlement** paid to employees at the end of their employment in most GCC countries. They are mandated by law and are calculated based on: - Length of service - Final basic salary - Reason for termination (resignation or dismissal) ### **📝 ESB Applies When:** - An employee **resigns** or is **terminated** - The employee has **completed at least one year** of continuous service - Employment ends **without serious misconduct** The benefit is meant to reward loyalty and provide financial support during the transition out of employment. ## **What Is Severance Pay?** **Severance pay** is a broader, more discretionary compensation that an employer may offer during **involuntary terminations**, especially those unrelated to employee misconduct. It’s often used in: - Layoffs - Redundancies - Company restructuring - Mutual separations Severance is **not always legally required** in the GCC, unlike ESB. However, it may be: - Stipulated in **employment contracts** - Offered as part of a **settlement agreement** - Given to avoid legal disputes or reputational damage   ## **Key Differences Between Severance and ESB** | **Feature** | **End-of-Service Benefits (Gratuity)** | **Severance Pay** | | --- | --- | --- | | **Legally Required** | *Yes, under GCC labor laws* | *No (unless contractually stated)* | | **Based on Service Tenure** | *Yes (e.g., 1 year minimum in KSA)* | *Not necessarily* | | **Reason for Payment** | *Contract termination/resignation* | *Layoff, redundancy, mutual exit* | | **Calculation Method** | *Formula based on salary & tenure* | *Agreed amount (can vary)* | | **Applies to Misconduct?** | *No (ESB can be forfeited)* | *Sometimes offered as a settlement* |   ## **Is Gratuity the Same as End-of-Service Benefits?** Yes. In GCC terminology, **"gratuity"** and **"end-of-service benefits" (ESB)** usually refer to the **same concept**. For example: - In the **UAE**: Gratuity is the official term used in the UAE Labour Law. - In **Saudi Arabia**: ESB or “مكافأة نهاية الخدمة” is the common term, though some companies refer to it as gratuity in English. So while the terms are used interchangeably, remember that the **rules and formulas differ by country**.   ## **How End-of-Service Benefits Work in Saudi Arabia (KSA)** Saudi Arabia has clearly defined ESB rules under **Articles 84 to 87** of the Saudi Labor Law. ### **Who Qualifies:** **✅** All employees who complete **1 year or more** of continuous service **✅** Workers were terminated without serious misconduct **✅** Employees who **resign voluntarily** (partial or full ESB, depending on tenure) ### **ESB Calculation Formula (KSA):** | **Employment Duration** | **ESB Calculation** | | --- | --- | | First 5 years | Half a month's wage per year | | After 5 years | One month's wage per additional year | 💡 If the employee resigns: - **2–5 years** of service = 1/3 of ESB - **5–10 years** = 2/3 of ESB - **10+ years** = Full ESB **Example:** If your basic monthly salary is SAR 10,000 and you’ve worked for 7 years: - First 5 years = 0.5 × 10,000 × 5 = SAR 25,000 - Next 2 years = 1 × 10,000 × 2 = SAR 20,000 → Total ESB = **SAR 45,000** If you resigned after 7 years, you’d get **two-thirds** of that = **SAR 30,000**   ## **Severance & ESB in Other GCC Countries** ### **🇦🇪 United Arab Emirates (UAE):** - Gratuity is calculated based on **basic salary only** - 21 days’ pay per year (first 5 years), then 30 days/year - Misconduct can lead to forfeiture - Severance is not mandatory, but is often offered in layoffs ### **🇶🇦 Qatar:** - Employees receive **3 weeks’ wages per year** - Applies after 1 year of service - Severance is not mandated, but gratuity is ### **🇴🇲 Oman:** - Gratuity is calculated as **15 days’ pay per year** (first 3 years), then 30 days/year - Must be paid within 7 days of employment termination ### **🇰🇼 Kuwait & 🇧🇭 Bahrain:** - Similar rules apply, with slight differences in wage components and payout deadlines.   ## **FAQs: What People Also Ask** ### **1.Is severance pay mandatory in Saudi Arabia?** No. **Severance pay is not legally required** in Saudi Arabia. However, companies may choose to offer it in cases of layoffs or restructuring.   ### **2.How is end-of-service gratuity calculated in KSA?** In KSA, the gratuity (ESB) is calculated based on the employee’s basic salary and years of service: - Half-month pay per year for first 5 years - One month's pay per year after that ### **3.Can an employee receive both severance pay and ESB?** Yes, if the employer voluntarily offers severance in addition to the mandatory ESB, an employee may receive both.   ### **4.What happens if an employee is terminated for misconduct?** In most GCC countries, including KSA, **serious misconduct may forfeit ESB**. Severance is also unlikely to be offered.   ### **5.Is end-of-service benefits taxable in the GCC?** In most GCC countries, including KSA and UAE, ESB and severance pay are **not subject to income tax**.   ## **Final Thoughts** While **severance pay** and **end-of-service benefits** (gratuity) may seem similar, they serve **different purposes** and follow **different rules**—especially in GCC countries like Saudi Arabia. - **End-of-service benefits** are a legal right and must be calculated according to national labor laws. - **Severance pay** is typically optional and negotiated based on company policy or individual contracts. As an HR professional or employee, understanding the distinction helps you stay compliant, plan better, and avoid disputes. Always refer to your local labor law—or better yet, use an HR solution like ZenHR to automate these calculations accurately and in line with the law. ![Amanee Hasan](https://blog.zenhr.com/hubfs/1782294238755%20(1).jpg) ###### Amanee Hasan Amanee Hasan is a Senior Content Strategist at ZenHR, an award-winning and top-rated HR software solution serving organizations across the MENA region. She specializes in SEO, UX writing, copywriting, product marketing, and content covering the latest HR trends, labor laws, HR technology, and the future of work. [![](https://blog.zenhr.com/hubfs/twitter-8cf36c23d176d000e2f5dc387765dd27b66f904a8a315c6434cd1a6d8344211b.svg)](https://twitter.com/intent/tweet?text=&url=https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia) [![](https://blog.zenhr.com/hubfs/youtube-c8f18995de96b0f4eb98b996d34cb3ea94e258a79a3b5e845bc579a038f19b6d.svg)](https://www.youtube.com/channel/UCzySK9TivxAm1-iF72GnR5g/featured) [![](https://blog.zenhr.com/hubfs/linkedin-9ff131a270db726592e57fbfcebf96db44a3ce63a5d2914b91d27348284d0015.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia) [![](https://blog.zenhr.com/hubfs/instagram-41bfff538174da53c2864a7ddc503b681806535212c8ce0f92d4b85eb606788b.svg)](https://www.instagram.com/zenhrms/) [![](https://blog.zenhr.com/hubfs/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia) ### Related Posts ##### [How to Prepare for Year-End Payroll & EOSB Settlements in Saudi Arabia? (2025 Guide)](https://blog.zenhr.com/en/how-to-prepare-for-year-end-payroll-eosb-settlements-in-saudi-arabia-2025-guide) As the year comes to an end, HR and payroll teams across Saudi Arabia shift their focus to one of the most important... [Read More](https://blog.zenhr.com/en/how-to-prepare-for-year-end-payroll-eosb-settlements-in-saudi-arabia-2025-guide) ##### [Payroll Compliance in Saudi Arabia: GOSI, WPS, & Mudad Explained](https://blog.zenhr.com/en/payroll-compliance-in-saudi-arabia-gosi-wps-mudad-explained) Payroll Compliance in KSA & What are GOSI, WPS, & Mudad Payroll compliance in Saudi Arabia is about processing... [Read More](https://blog.zenhr.com/en/payroll-compliance-in-saudi-arabia-gosi-wps-mudad-explained) ##### [10 HR Payroll Software in 2026: Complete Buyer’s Guide](https://blog.zenhr.com/en/10-hr-payroll-software) A single payroll error can trigger compliance penalties, employee disputes, or audit risks. In high-regulation... [Read More](https://blog.zenhr.com/en/10-hr-payroll-software) ##### [Payroll UAE: A Complete Guide to Payroll Processing, WPS Compliance & Best Practices (2026)](https://blog.zenhr.com/en/payroll-uae-a-complete-guide-to-payroll-processing-wps-compliance-best-practices-2026) Managing payroll in the UAE is more than calculating salaries. With strict regulations, WPS requirements, and labour... [Read More](https://blog.zenhr.com/en/payroll-uae-a-complete-guide-to-payroll-processing-wps-compliance-best-practices-2026) ### Stay up-to-date with the latest HR trends, technologies, and tips with the ZenHR blog. Subscribe to our blog ![](https://blog.zenhr.com/hs-fs/hubfs/Imported_Blog_Media/ZenHR-Logo-2-Feb-01-2024-02-11-18-0414-PM.png?width=180&height=102&name=ZenHR-Logo-2-Feb-01-2024-02-11-18-0414-PM.png) ### Stay up to date Start now with ZenHR ! [Request a demo now](https://www.zenhr.com/en/request-demo) [![zenhr-footer-logo-99ab3a0608e834168a4cf2a24fff68a7ca97546bda52d1f7969cd24d2fac98c5](https://blog.zenhr.com/hubfs/zenhr-footer-logo-99ab3a0608e834168a4cf2a24fff68a7ca97546bda52d1f7969cd24d2fac98c5.svg "zenhr-footer-logo-99ab3a0608e834168a4cf2a24fff68a7ca97546bda52d1f7969cd24d2fac98c5")](http://www.zenhr.com) Company - [About Us](https://www.zenhr.com/en/about) - [ZenHR’s Awards](https://www.zenhr.com/en/awards) - [Testimonials](https://www.zenhr.com/en/testimonials) - [Partner with Us](https://www.zenhr.com/en/partners) - [Join our Team](https://careers.zenhr.com) - [Trust Center](https://trust.zenhr.com/?__hstc=205882892.7fd0844bd2901d8094a29a88f1c918a8.1722938091090.1725387617475.1725898623235.38&__hssc=205882892.4.1725898623235&__hsfp=2049128043) Modules - [Payroll](https://www.zenhr.com/en/modules/payroll) - [Attendance and Time-Tracking](https://www.zenhr.com/en/modules/attendance-and-time-tracking) - [Employee Self-Service (ESS)](https://www.zenhr.com/en/modules/employee-self-service) - [Onboarding and Offboarding](https://www.zenhr.com/en/modules/on-boarding-and-off-boarding) - [Performance and Evaluation](https://www.zenhr.com/en/modules/performance-and-evaluation) - [Applicant Tracking System (ZenATS)](https://www.zenhr.com/en/modules/applicant-tracking-system) - [All Modules](https://www.zenhr.com/en/modules) Resources - [Blog](https://blog.zenhr.com/) - [White Papers](https://www.zenhr.com/en/whitepapers) - [FAQs](https://www.zenhr.com/en/faqs) - [HR Terms Glossary](https://www.zenhr.com/en/glossary) - [HR Case Studies](https://www.zenhr.com/en/hr-case-studies) - [Salary Calculator](https://www.zenhr.com/en/salary-calculator) - [Tax Calculator](https://www.zenhr.com/en/tax-calculator) - [HR Letters and Templates](https://www.zenhr.com/en/hr-letters-templates) - [Developer API](https://api-docs.zenhr.com/?_gl=1*aa7oba*_gcl_au*ODkzMDYzMjIxLjE3NTI0ODcyNTc.) Stay Connected - [KSA +966 54 129 8521](tel:+966541298521) - [Jordan +962 6 577 7500](tel:+96265777500) - [UAE +971 55 634 6904](tel:+966541298521) [\[sales@zenhr.com\]](mailto:sales@zenhr.com) - [![facebook](https://blog.zenhr.com/hubfs/facebook.svg)](https://web.facebook.com/ZenHR-1664430587188637) - [![instagram-41bfff538174da53c2864a7ddc503b681806535212c8ce0f92d4b85eb606788b](https://blog.zenhr.com/hubfs/instagram-41bfff538174da53c2864a7ddc503b681806535212c8ce0f92d4b85eb606788b.svg)](https://www.instagram.com/zenhrms/) - [![linkedin-9ff131a270db726592e57fbfcebf96db44a3ce63a5d2914b91d27348284d0015](https://blog.zenhr.com/hubfs/linkedin-9ff131a270db726592e57fbfcebf96db44a3ce63a5d2914b91d27348284d0015.svg)](https://www.linkedin.com/company/zenhr/) - [![youtube-c8f18995de96b0f4eb98b996d34cb3ea94e258a79a3b5e845bc579a038f19b6d](https://blog.zenhr.com/hubfs/youtube-c8f18995de96b0f4eb98b996d34cb3ea94e258a79a3b5e845bc579a038f19b6d.svg)](https://www.youtube.com/channel/UCzySK9TivxAm1-iF72GnR5g/featured) - [![twitter-8cf36c23d176d000e2f5dc387765dd27b66f904a8a315c6434cd1a6d8344211b](https://blog.zenhr.com/hubfs/twitter-8cf36c23d176d000e2f5dc387765dd27b66f904a8a315c6434cd1a6d8344211b.svg)](https://twitter.com/zenhrms) [![app-store1](https://blog.zenhr.com/hs-fs/hubfs/app-store1.png?width=564&height=188&name=app-store1.png)](https://itunes.apple.com/us/app/zenhr-ess/id1376637090?mt=8) [![app-store2](https://blog.zenhr.com/hs-fs/hubfs/app-store2.png?width=564&height=168&name=app-store2.png)](https://play.google.com/store/apps/details?id=com.zenhr) ZenHR © 2024 All Rights Reserved - [Privacy Policy](https://www.zenhr.com/ar/privacy-policy) - [Terms of Service](https://www.zenhr.com/en/terms) - [Security](https://www.zenhr.com/en/security-and-privacy) [![ZenHR logo](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69314b46f458f9343c254840_footer-logo.webp) ZenHR - Go to homepage](https://www.zenhr.com/en) [![Download ZenHR on Google Play](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69314da8905df161d491acd2_google-play.webp)](https://play.google.com/store/apps/details?id=com.zenhr) [![Download ZenHR on App Store](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69314da8128f0b695a657934_app-store.webp)](https://apps.apple.com/us/app/zenhr-ess/id1376637090) [![](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/6930750765a386f54aa608c6_x.svg)](https://x.com/zenhrms) [![](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69307506f8f16854fbd4db22_facebook.svg)](https://facebook.com/ZenHR-1664430587188637) [![](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69307507f7ef302ff84a30d0_instagram.svg)](https://www.instagram.com/zenhrms/) [![](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69307507c7a22fac4846d400_linkedin.svg)](https://www.linkedin.com/company/zenhr/) [![](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/693075068c825a88aaf9fcde_youtube.svg)](https://www.youtube.com/channel/UCzySK9TivxAm1-iF72GnR5g/featured) ## Company - [About Us](https://www.zenhr.com/en/about) - [ZenHR's Awards](https://www.zenhr.com/en/awards) - [Testimonials](https://www.zenhr.com/en/testimonials) - [Partner with Us](https://www.zenhr.com/en/partners) - [Join our Team](https://careers.zenhr.com/en/careers_page) - [Refer Companies to ZenHR](https://www.zenhr.com/en/referral-program) - [Trust Center](https://trust.zenhr.com/) ## Modules - [All Modules](https://www.zenhr.com/en/modules) - [Payroll](https://www.zenhr.com/en/modules/payroll) - [Time Management](https://www.zenhr.com/en/modules/attendance-and-time-tracking) - [Employee and Manager Self-Service (ESS & MSS)](https://www.zenhr.com/en/modules/employee-self-service) - [Employee Management](https://www.zenhr.com/en/modules/employee-management) - [Performance Evaluation](https://www.zenhr.com/en/modules/performance-and-evaluation) - [Reporting & Analytics](https://www.zenhr.com/en/modules/reporting-and-analytics) - [ZenATS Applicant Tracking System (ATS)](https://www.zenhr.com/en/modules/applicant-tracking-system) - [Earned Wage Access (ZenEWA)](https://www.zenhr.com/en/earned-wage-access-zenewa) - [Mobile App](https://www.zenhr.com/en/mobile) ## Industries - [HR Software for Construction](https://www.zenhr.com/en/construction-industry) - [HR Software for IT](https://www.zenhr.com/en/it-industry) - [HR Software for F&B](https://www.zenhr.com/en/food-and-beverage-industry) - [HR Software for Retail](https://www.zenhr.com/en/retail-industry) - [HR Software for Real Estate](https://www.zenhr.com/en/real-estate-industry) - [HR Software for Enterprise Companies](https://www.zenhr.com/en/enterprise-hr-software) ## Resources - [Blog](https://blog.zenhr.com/en) - [White Papers](https://www.zenhr.com/en/whitepapers) - [FAQs](https://www.zenhr.com/en/faqs) - [HR Terms Glossary](https://www.zenhr.com/en/glossary) - [HR Case Studies](https://www.zenhr.com/en/hr-case-studies) - [Service Termination Benefits Calculator](https://www.zenhr.com/en/service-termination-calculator) - [Salary Calculator](https://www.zenhr.com/en/salary-calculator) - [Tax Calculator](https://www.zenhr.com/en/tax-calculator) - [HR Letters and Templates](https://www.zenhr.com/en/hr-letters-templates) - [Knowledge Base](https://zenhrsolutions.freshdesk.com/en/support/home) - [Developer API](https://www.zenhr.com/en/api-documentation) ## Stay Connected - [![Saudi Arabia flag](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/693168cd608ef1cdd417aa8d_flag-sa.webp) KSA +966 54 129 8521](tel:+966541298521) - [![UAE flag](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/69394cc9ad88201e4048d4c8_uae-flag.svg) UAE +971 55 634 6904](tel:+971556346904) - [![Jordan flag](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/693168cd92a62437e3e851f9_flag-jo.webp) Jordan +962 6 577 7500](tel:+96265777500) [![ZenHR - Great Place To Work Certified](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/6955a691f5dce4e0a62522a6_great-place-to-work-ksa.webp)](https://greatplacetowork.me/certified-organization/zenhr/) [![AICPA SOC 2 Type II Certified](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/6979cd2cd0853912af68a3f2_soc2.png)](https://www.zenhr.com/en/security-and-privacy) ![Global region selector](https://cdn.prod.website-files.com/6512cbc4fa8d0ecb482a233b/6951888429701bd867a2148c_globe-icon.svg) MENA & Gulf [العربية](https://blog.zenhr.com/ar) ZenHR © 2026 All Rights Reserved [Privacy Policy](https://www.zenhr.com/en/privacy-policy) [Terms of Service](https://www.zenhr.com/en/terms) [Security](https://www.zenhr.com/en/security-and-privacy) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Amanee Hasan", "url" : "https://blog.zenhr.com/en/author/amanee-hasan" }, "dateModified" : "2025-08-27T11:16:49.716Z", "datePublished" : "2025-08-27T11:12:07.000Z", "headline" : "Severance Pay vs. End-of-Service Benefits in the GCC & Saudi Arabia", "mainEntityOfPage" : { "@id" : "https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.zenhr.com/hubfs/logo%20zenhr.png" }, "name" : "ZenHR" } } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "" }, "dateModified" : "2025-08-27T11:16:49+0000", "datePublished" : "2025-08-27T11:12:07+0000", "description" : "", "headline" : "", "image" : [ "https://lh7-rt.googleusercontent.com/docsz/AD_4nXdmvozZ6CnnXrHTVCdNnSWoo-ltDfEMhZTEFVZd2vCvpu-b8ZJDpSoUWn2X3GDRkGkqsVNGyi-E5iQAwZcgqg-hbj_annpZ0QiUutrdWmTT9jZAJc3zUF45t6YBYlA7Qs-eTHViog?key=AKJM30W5xhZ3qcd71pucYQ" ], "inLanguage" : "en", "mainEntityOfPage" : { "@id" : "https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.zenhr.com/hs-fs/hubfs/Imported_Blog_Media/ZenHR-Logo-2-Feb-01-2024-02-11-18-0414-PM.png" }, "name" : "ZenHR" }, "url" : "https://blog.zenhr.com/en/severance-pay-vs.-end-of-service-benefits-in-the-gcc-saudi-arabia" } ```