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

  1. Compute award.
  2. Apply resignation rules.
  3. Pay.

We can do this for youQiwa contract documentation and Mudad wage protection: pay salaries on time and keep data matched: SAR 1,500

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