What is Saudi end-of-service award?
The Saudi end-of-service award is the terminal payment owed under the Saudi Labour Law, calculated at half a month's wage per year for the first five years and a full month thereafter.
Saudi end-of-service award explained
The standard calculation is 15 days' wage for each of the first five years of service and 30 days' wage for each subsequent year, based on the final wage.
Resignation reduces entitlement on a sliding scale: no award below two years, one third between two and five years, two thirds between five and ten years, and the full amount after ten years. Termination by the employer does not attract this reduction.
This differs materially from the UAE gratuity formula, which is one reason a single GCC payroll system has to hold both calculations rather than generalising one.
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