Reward Calculation Method
Half a month's wage for each of the first five years, then a full month's wage for each subsequent year, and parts of the year are calculated proportionally.
Calculate employee dues and net settlement clearly according to Saudi Labor Law, with details of end of service reward, leave balance, compensations, and deductions.
The tool logic separates the end of service reward from other settlement elements, as each element may be subject to a different rule based on the reason for termination and the contract.
Enter the employee's working period and the last actual wage used as the basis for the calculation.
Choosing the reason directly affects the end of service reward entitlement percentage.
Use this if you want to calculate the full net settlement and not just the end of service reward and leave balance.
Half a month's wage for each of the first five years, then a full month's wage for each subsequent year, and parts of the year are calculated proportionally.
Less than 2 years: no reward under Article 85. 2-5 years: one-third. 5-10 years: two-thirds. 10+ years: full reward.
Generally, the worker's rights should be settled within a week of termination, and if the worker terminated the contract, the period is a maximum of two weeks.
It is the basic wage plus increases, allowances, and benefits that are legally included in the wage according to the employment contract or the work organization regulations. For some commissions or variable percentages, it may be agreed not to include all or some of them in the end-of-service reward basis.
Yes. Upon leaving work, the worker is entitled to the wage for the accrued annual leave days that they have not used, so you can enter the remaining balance directly into the calculator.
Important cases include: dismissal according to the cases mentioned in Article 80, as well as resignation before completing two years, which does not entitle a reward according to Article 85, with the need to ensure the accurate legal classification of the case.
Yes, optionally within the Advanced Settlement Options. If the contract does not specify different compensation, the tool calculates the rule stated in Article 77 with the statutory minimum, and in a fixed-term contract, you need to enter the remaining period.
No. This tool is designed for private sector workers subject to the Saudi Labor Law, and it does not automatically apply to domestic workers or employees subject to civil service systems or special regulations.
Calculate employee dues and net settlement clearly according to the provisions of the Saudi Labor Law.
Practical tools for the daily calculations of accountants and business owners