How much of the award you receive
The full award is half a month's wage per year for the first five years and a full month's wage per year after that (Article 84). This table shows the share you receive.
| Years of service | If you resign (Article 85) | If the employer ends it or the contract expires |
|---|---|---|
| Less than 2 years | Nothing | Full award |
| 2 to 5 years | One third | Full award |
| More than 5 and less than 10 years | Two thirds | Full award |
| 10 years or more | Full award | Full award |
Dismissal for serious misconduct under Article 80 removes the award. Leaving under Article 81 or Article 87 keeps the full award.
The formula in Article 84
Article 84 of the Labor Law gives a worker whose contract ends half a month's wage for each of the first five years of service and one month's wage for each year after that. Part of a year is paid in proportion to the time worked. The award is calculated on the last wage the worker received.
- 3 years on SAR 6,000: 3 × 0.5 × 6,000 = SAR 9,000.
- 7 years on SAR 8,000: (5 × 0.5 × 8,000) + (2 × 8,000) = 20,000 + 16,000 = SAR 36,000.
- 12 years on SAR 10,000: 25,000 + (7 × 10,000) = SAR 95,000.
If you resign
Article 85 reduces the award when the worker resigns. A worker with less than two years of continuous service gets nothing. From two to five years the worker gets one third, from more than five and less than ten years two thirds, and from ten years the full award. The years must be consecutive service with the same employer. Resigning one month after reaching a threshold can change the result a lot, so check your exact dates before you hand in notice.
When you keep the full award
You receive the full award, whatever your length of service, when the employer ends the contract or a fixed-term contract expires without renewal. Article 87 also gives the full award to a worker who leaves because of force majeure beyond their control, and to a woman who ends her contract within six months of her marriage contract or within three months of giving birth. Article 81 allows a worker to leave without notice and keep all rights when the employer breaks the contract, for example by not paying wages, by fraud about the terms of work, or by assault. If the employer ends a contract without a valid reason, Article 77 compensation is due on top of the award.
When there is no award
Article 80 lists serious cases in which the employer may end the contract without notice, without compensation and without the award, such as assault on the employer or a manager, failing to perform essential duties after a written warning, or forgery to obtain the job. The worker must be given the chance to state their objection. If you believe the dismissal was wrong, you can raise a labour complaint.
Which wage counts
The Labor Law uses the actual wage: the basic wage plus the allowances paid with it, such as housing and transport. Commissions and sales percentages may be treated differently depending on your contract. Use the wage on your last payslip, not only your basic salary. If your wage changed over the years, the award is still calculated on the last wage.
Your full final settlement
The award is only one part of what you are owed when the job ends. Your final settlement should also include:
- Unpaid salary up to your last working day.
- Pay for annual leave you have earned but not taken.
- Any overtime or other dues the employer still owes.
- A service certificate stating your dates and job, which the employer must give you free of charge.
When it must be paid and what to do if it is not
Article 88 requires the employer to pay the wage and all dues within one week of the end of the contract when the employer ended it, and within two weeks when the worker ended it. You can see your contract details on Qiwa. If the money is not paid, you can file a labour complaint with the Ministry of Human Resources and Social Development, which first tries an amicable settlement and then refers the case to the labour court. You can file as a foreign worker: the service is free, works through Qiwa, the ministry’s website or the unified number 19911, and the complaint must be made within 12 months. Domestic workers file through Musaned instead.