End Of Service Award

End Of Service Award
The worker's last gross actual wage is calculated as the basis for calculating the bonus.

If the work relationship ends, the employer must pay the worker a reward for the period of his service, which is calculated on the basis of a half-month wage for each of the first five years, and a month’s wage for each of the following years. For parts of the year, the employee gets paid in proportion to what was spent on work.

What is the wage on which the end-of-service gratuity is calculated, is it the basic wage or the total wage?

The worker's last gross actual wage is calculated as the basis for calculating the bonus. The total wage is defined as the basic wage in addition to all other due increases that are decided for the worker in return for the effort he exerts at work, or the risks he is exposed to in the performance of his work, or that are decided for the worker in exchange for work under the work contract or the work organization regulation, including allowances, increases, and grants Bonuses, commissions and percentages. Nevertheless, it is permissible to agree in the work contract that all or some of the commission amounts, percentages of the sales price, and the like elements of the wage paid to the worker shall not be counted in the wage on the basis of which the end-of-service gratuity is settled, and which by their nature are subject to increase and decrease.

There is an easy, fast and free way to calculate the end of service on the Ministry of Human Resources website:

https://laboreducation.mlsd.gov.sa/en/calc