End of service for 7 years
End of service for 7-year employee resigning?
The situation
Article 84 gives half a month's wage per year for the first five years and one month per later year; resignation can reduce the amount under related articles.
The law
- Art 84, Saudi Labor Law: End of service award: half a month's wage for each of the first five years and one month for each later year
What it means for you
Example: wage SAR 8,000 and 7 years of service: 5 x 4,000 + 2 x 8,000 = SAR 36,000 full award. Resignation can reduce the award under related articles of the Labor Law, so check the reduction rules before paying.
What to do
- Compute award.
- Apply resignation rules.
- Pay.
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