End-of-service award calculation under Articles 84 and 85
Radeef computes the end-of-service award under Articles 84 and 85 of the Saudi Labor Law, and shows the calculation in the settlement.
The product interface is in Arabic.
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When employment ends, Radeef computes the award and the final settlement and shows the basis: the wage, the length of service, the reason for leaving and the article applied.
An illustration. Radeef's default values rest on our review of the official text of the law, and each company adjusts them to its case. This is a general explanation, not legal advice.
Read the calculation guide (Arabic)Worked example
- Last monthly wage
- 12,000 SAR
- Length of service
- 7 years
- First 5 years: half a month's wage per year[Art. 84]
- 5 × 6,000 = 30,000
- Next 2 years: a month's wage per year[Art. 84]
- 2 × 12,000 = 24,000
- Full award
- 54,000 SAR
- Resignation after 5 and before 10 years: two thirds of the award[Art. 85]
- 36,000 SAR
Source: Saudi Labor Law, Articles 84 and 85 · Last reviewed
Worked example: termination by the employer
- Last monthly wage
- 10,000 SAR
- Length of service
- 3 years
- Reason for leaving
- Termination by the employer
- 3 years: half a month's wage per year[Art. 84]
- 3 × 5,000 = 15,000
- Award
- 15,000 SAR
Source: Saudi Labor Law, Article 84 · Last reviewed
The final settlement and what it includes
The final settlement includes the end-of-service award and pay for the leave balance.
It includes overtime that payroll has not paid.
Outstanding loan balances are deducted from it.
The wage it uses counts recurring allowances, not one-off bonuses.
Termination and notice
The employer approves the end-of-service settlement. Cancelling or changing an exit, terminating during the notice period, rehiring and voiding are done by HR alone by default, never on one's own file, and a company can require a second person in its settings.
The employee stays at work until the last working day, then their service ends automatically.
Reversing a settlement takes two people's approval, and a settlement already paid out is not reversed.