How to calculate an employee's End of service reward?

The end-of-service reward is one of the worker’s rights over the employer in the event of the termination of the employment contract, and the Saudi legislator has mandated the employer to pay it to the employee upon the termination of the employment contract, whether fixed or indefinite.

Calculating the employee’s end-of-service reward at Jisr:

When an employee is terminated, the Jisr system calculates the end of service (according to the employee’s last wage, the type of contract, and the reason for the end of the contract) in accordance with the Ministry of Human Resources and Social Development’s end-of-service reward calculator.

The amount of the reward and its controls:

Article 84:

If the employment relationship ends, the employer must pay the worker a bonus for the period of his service, calculated on the basis of half a month’s wage for each of the first five years, and a month’s wage for each of the following years. The last wage is taken as a basis for calculating the bonus, and the worker is entitled to a bonus. For parts of the year in proportion to what was spent working.

Article 85:

If the employment relationship ends due to the worker’s resignation and his service is less than two years, he is not entitled to an end-of-service gratuity.

If the end of the employment relationship is due to the worker’s resignation and his service is not less than two years and up to 5 years, the worker is entitled to a third of the reward.

If the end of the employment relationship was due to the worker’s resignation and his service was more than (5) years and did not reach (10) years, the worker is entitled to two-thirds of the remuneration.

If the employment relationship ends due to the worker’s resignation and his service has reached (10) years or more, the worker is entitled to the full remuneration.

Article 86:

It is permissible for the employer and the worker to agree that all or some of the amounts of commissions, percentages, and the like shall not be included in the wage upon which the end-of-service reward is settled, as part of the elements of the wage paid to the worker, which are, by their nature, subject to increase or decrease.

Article 87:

If the relationship ends due to the worker leaving work as a result of force majeure, he is entitled to the full reward.

note:

The wage means the basic wage in addition to all other accrued increases that are determined for the worker in exchange for the effort he exerts at work, or the risks he is exposed to in performing his work, or that are determined for the worker in exchange for work in accordance with the employment contract or work organization regulations (the actual wage or the full salary).