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Radeef

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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Payroll, leave and end of service computed under the Labor Law, and you see how

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.

Questions you will ask in the demo

Does Radeef compute the end-of-service award under the Labor Law?
Yes, under Articles 84 and 85, and it shows the calculation in the settlement. The default values rest on a review of the official text of the law, each company adjusts them to its case, and reviewing special cases is the company's responsibility.
Is the award different on resignation?
Yes. Radeef applies Article 85 to a resignation and shows in the settlement the article applied. In the example above, a resignation after 5 and before 10 years gives two thirds of the award.
Can a settlement be reversed after approval?
Reversing a settlement takes two people's approval, and a settlement already paid out is not reversed.

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