Article 84 of the Saudi Labor Law
In Saudi Arabia, the End-of-service Award is a statutory right for all workers, whether Saudi nationals or expats. It is calculated based on your total salary (Basic + major allowances).
The Award Multipliers
First 5 Years: 1/2 Month Salary per Year
After 5 Years: 1 Full Month Salary per Year
After 5 Years: 1 Full Month Salary per Year
Impact of Resignation (Article 85)
The award amount significantly changes if an employee resigns before completing 10 years:
- 2 to 5 Years Tenure: 1/3 of the award.
- 5 to 10 Years Tenure: 2/3 of the award.
- 10+ Years Tenure: Full award.
The "Last Drawn Salary" Rule
The award is calculated using the salary rate at the time of contract termination. If you received a promotion or raise recently, your entire tenure is calculated using the new higher rate.
Authentic FAQ
Do expats get the same award as Saudis?
Yes, the Labor Law applies equally to all private-sector employees regardless of nationality.
What if I am fired for cause?
Under Article 80, if you are terminated for specific reasons (e.g., assault or theft), you may forfeit your right to the award.
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