Aqid ERPMeaning
The end-of-service benefit (مكافأة نهاية الخدمة) is set by Articles 84 to 87 of the Labour Law. On termination by the employer, or the end of a fixed-term contract, it is half a month's wage for each of the first five years of service and a full month's wage for each year after, computed on the last wage, which includes basic pay and fixed allowances such as housing. Part years count pro rata.
On resignation the award is reduced: nothing under two years, a third of the award from two to five years, two thirds from five to ten, and the full award after ten. A woman who resigns within six months of marriage or three months of childbirth receives the full award. Employers book a provision for it every month, because the liability exists from the first day.
Also called: gratuity · end-of-service award · EOSB · مكافأة نهاية الخدمة
Example
An employee on a last wage of 10,000.00 is made redundant after six years. The award is 5 × 5,000.00 for the first five years plus 1 × 10,000.00 for the sixth, 35,000.00. Had they resigned after the same six years, the award would be two thirds, 23,333.33.