Under Article 84 of the Saudi Labor Law, an employee earns half a month's wage for each of the first five years of service. Each year after that earns a full month's wage, based on the last wage. On resignation, Article 85 grants a share of the award that depends on length of service.
Step by step
- 1
Calculate length of service
In years, months and days, because part years count pro rata.
- 2
The first five years
Half a month's wage for each year.
- 3
After five years
A full month's wage for each additional year.
- 4
On resignation under Article 85
Nothing if service is under two years, one third of the award from two to five years, two thirds above five and under ten years, and the full award from ten years on.
- 5
When the employer ends the contract
The employee is entitled to the full award under Article 84, except in the cases of lawful dismissal that the law specifies.
Check what the employee's contract and the company's regulations count as the wage for this calculation, because that is the biggest source of difference between one calculation and another.
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