The Ministry of Human Resource and Social Development has issued a procedure for calculating the reward at the end of the service. The employers received entitlement at the end of the service. However, this entitlement depends upon the period of service.
What is the procedure to calculate the final salary? What if the job is ended based on resignation? Keep reading till the end to know more details.
The Ministry of Human Resource and Social Development said in a statement on its website that for the first five (5) years of employment, half the salary is paid annually and thereafter one month’s salary per year is received as ‘Makafat Nahayat-e-Khidmat’. Read more: List of Heavy Fines on Saudi Employer Up to SR 25,000
What is the Procedure to Calculate the Final Salary?
The Ministry of Human Resource and Social Development says that the final salary is calculated according to the last service. In a statement, the Ministry of Manpower added that the employee’s final actual total salary would be calculated. This means that the allowances received in the salary will also be included. Read more: How Can Expats Come to Saudi Arabia from Travel-Restricted Countries?
What if the Job is Ended Based on Resignation?
The Ministry of Human Resource and Social Development says that according to Section 85 of the Labor Law, if a job is terminated based on resignation, the employee will be entitled to one-third of the salary after two years of service. This principle of service will be applicable for a period of 5 years. Read more: SR.1 Million Fine and 15-Years Jail For Threatening Employees At Workplace in Saudi Arabia
What if the Period of Services is More Than Ten (10) years?
After five (5) years, the service entitlement will be up to two-thirds. This rule applies to a period of service of fewer than ten (10) years, however, if the period of service is ten (10) years or more, then full entitlement is granted. Read more: GOSI Benefits for Saudi Expat Workers in Saudi Arabia