How Radeef calculates entitlements
Each calculation on this page shows the article it rests on, a worked example and a guide that links to the official text. The values in Radeef are defaults that each company adjusts to its case.
The product interface is in Arabic.
Request a demoEnd-of-service award
The end-of-service award is calculated on the last wage: half a month's wage for each of the five opening years of service and a month's wage for each year after them, and the worker earns an award for part of a year in proportion to the time worked in it.
Radeef calculates the award this way in the final settlement, and shows the wage, the length of service, the reason for leaving and the article applied.
This is a general explanation, not legal advice.
End-of-service guide (Arabic)Example 1: termination by the employer after 3 years
- 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 due[Art. 84]
- 15,000 SAR
Source: Labor Law, Article 84 · Last reviewed
Example 2: resignation after 7 years
- Last monthly wage
- 12,000 SAR
- Length of service
- 7 years
- Reason for leaving
- Resignation
- 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[Art. 84]
- 54,000 SAR
- Resignation after 5 and before 10 years: two thirds of the award[Art. 85]
- 36,000 SAR
Source: Labor Law, Articles 84 and 85 · Last reviewed
Overtime pay
For each overtime hour the employer pays the hourly wage plus 50% of the basic wage; with the worker's consent, paid compensatory days off may be granted instead.
In payroll, Radeef by default takes the overtime hourly wage from the basic wage and the fixed monthly allowances, and adds half the basic hourly wage on a working day and the full basic hourly wage on the company's weekly rest days (Friday and Saturday by default). It applies the annual cap when overtime is approved.
This is a general explanation, not legal advice.
Overtime guide (Arabic)Illustrative example: overtime on a working day
- Basic wage
- 7,200 SAR
- Fixed monthly allowances
- 2,400 SAR
- Hourly wage from the monthly wage
- 9,600 ÷ 240 = 40
- Added to the hour: half the basic hourly wage[Art. 107]
- 15 SAR
- Overtime hourly rate
- 40 + 15 = 55
- Pay for the overtime hours
- 2 × 55 = 110
Source: Labor Law, Article 107 · Last reviewed
Wage deduction caps
The total deducted from a worker's wage may not exceed half the wage due, except in a case set out in Article 93, and no more than 10% of the wage may be deducted to recover the employer's loans without the worker's written consent.
Radeef applies these caps in payroll: the part of a loan instalment the cap cannot take is not deducted and stays in the loan balance, and a fine the cap cannot take stays due for the next month.
This is a general explanation, not legal advice.
Deduction caps guide (Arabic)Illustrative example: a loan instalment without written consent
- Monthly wage
- 8,000 SAR
- Monthly loan instalment
- 1,500 SAR
- Instalment cap[Art. 92]
- 800 SAR
- Radeef deducts
- 800 SAR
- Stays in the loan balance
- 700 SAR
- Net pay
- 7,200 SAR
Source: Labor Law, Article 92 · Last reviewed
Illustrative example: two fines in one month
- Monthly wage
- 9,000 SAR
- Daily wage
- 300 SAR
- Monthly cap on fines[Art. 70]
- 1,500 SAR
- Radeef deducts the oldest fine
- 900 SAR
- Stays due for the next month
- 900 SAR
Source: Labor Law, Article 70 · Last reviewed
GOSI contributions
A person with contribution periods before 3 July 2024 that were not compensated, or a pension due before then, stays on the previous system. Under it, a Saudi worker's contribution in the private sector is 21.5% of the contributory wage: 9.75% on the employee (9% annuities and 0.75% SANED) and 11.75% on the employer (9% annuities, 2% occupational hazards and 0.75% SANED).
Example 1: a Saudi employee on the previous system, with a basic wage of 8,000 SAR and a housing allowance of 2,000 SAR. The contributory wage is 10,000 SAR, the employee's share 975 SAR, the employer's share 1,175 SAR, and the total 2,150 SAR.
This is a general explanation, not legal advice.
GOSI guide (Arabic)Example 1: a Saudi employee on the previous system
- Basic wage
- 8,000 SAR
- Housing allowance
- 2,000 SAR
- Contributory wage
- 10,000 SAR
- Employee share: annuities and SANED
- 10,000 × 9.75% = 975
- Employer share: annuities, occupational hazards and SANED
- 10,000 × 11.75% = 1,175
- Total monthly contribution
- 2,150 SAR
Source: Social insurance rules as cited in the Arabic guide on GOSI contributions · Last reviewed
Example 2: a Saudi employee on the new system
- Basic wage
- 8,000 SAR
- Housing allowance
- 2,000 SAR
- Contributory wage
- 10,000 SAR
- Employee share: annuities and SANED
- 10,000 × 10.75% = 1,075
- Employer share: annuities, occupational hazards and SANED
- 10,000 × 12.75% = 1,275
- Total monthly contribution
- 2,350 SAR
Source: Social insurance rules as cited in the Arabic guide on GOSI contributions · Last reviewed