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EOS Benefit Calculation with New Method for Saudi Arabia Payroll-Part-01


This document explains you the way of configuration end of service benefits(EOSB) policy as per your company policy. This document is totally based on Saudi Arabia Payroll solution but it may helps you in other country specific solution such as UAE Payroll, QATAR Payroll, OMAN Payroll where you want configure end of service benefits solution.


SAP provide solution to calculate end of service benefit – EOSB based on Saudi Arabia labor law:

  • End Of Service Benefits Calculation – Old Method

  • End Of Service Benefits Calculation – New Method

For More details: visit this

Configuration and Back-end Settings

Step # 1:

For consideration of EOS base calculation payment u have to decide which wage type needs to be consider at the time of EOS calculation, for this

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration – New Method > Assign processing class for EOS Wage types

Table Access: Transaction code SM30 maintain table view V_512W_D



Step # 2:

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration – New Method > Determine EOS Termination Reasons

T-Code: PE03 feature 24EOS


Step # 3:

SPRO Path: Payroll > Payroll : Saudi Arabia > End Of Services (EOS) > EOS Configuration – New Method > Configure End of Service Provisioning and Payout Policy

Resignation Policy:

Design/create your company resignation policy here:


Below screenshot show you how to design Resignation benefits slabs as per Saudi Arabia labor law:

“RES” is a Pay Type variable which you use as return value in your feature 24EOS

“01” is Pay Group variable it will use in case of more than one group in a same policy


In above screenshot if you want that your slabs calculate payment benefit as peroration base then checked mark both button “Prorate” and “Payment Slabs”

Below screenshot show you that i design my resignation policy in three different slabs, kindly note i am considering my year as 360 total days

From Day To – Day Year Slab Benefit Formula
721 1800 02 – 05 (half month Salary/360)*1/3 * Number of services days
1801 3600 05 – 10 (Month Salary/360)*2/3 * Number of services days
3601 9999 10 more (Month Salary/360)*1 * Number of services days


From Day 721 – 1800 Days


From Day 1801 – 3600 Days


From Day 3601 – 9999 Days


Please follow me for more Saudi Payroll related processes i can write document for Termination policy soon 

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  • Dear Bashir,

    I have one issue i hope if you can help me to solve it,

    An employee his hiring date is 20.11.2002 and when i create termination action to him the EOS showing for 5 years only, not showing for all his period 13 years.

    Could you advise me ?



    • Check SASYR function this is the point where EOS service days computation will take place and pass on NUMBER to PCR, basically it will retrieve data from IT0002 (DOB field), IT2001, IT0000 & IT001.

      Try to put the break point in this function and run the payroll and check step by step how Service days are being calculated, you can figure it out issue easily!



      • Hi Magdy,

        Make sure your configuration settings first, and also tell me its issue only service duration calculations or wrong amount, please tell me which EOS methodology in backend you are using ? also check your EOS slabs these are properly configured or not, otherwise share some screen shots so that I can assist you better



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  • Hi All,

    The issue resolved but after i changed the date of birth for this employee because his age is 66 years.

    I changed his age less than 59 years, The EOS coming correct now.

    Just i want ask you if any rules checking the Age with EOS calculation?? if yes pls let me know this rule.



  • Thank you Mr. Bashir for your helpful article.


    For bigenners, need to mention (as in guide) how to change the calculation from old to new method. must go to schema SAP9 (for the private sector) and SAU2 (for the public sector), uncomment schema SAEN and comment schema SAEO.


    Change the KSA EOS from old method to new method


    Thank you