Ukmitra
Business Development, Employee Relations,
Sree
Business Analyst
Shahzadtufail
Project Coordinator
+1 Other

Dear Freinds please provide End of service benefit policy for the employees served in a firm 10 years and more.
8th January 2013 From Saudi Arabia, Khobar
Hello Rahim,
Please do not expect people to share their company policy just like that.
An employee resigning/ retiring after 10 years will generally have the following benefits
1. PF withdrawal / transfer
2. Pension withdrawal / transfer
3. Gratuity
4. Loyalty Bonus, if any
5. Unavailed and accumulated encashment of Earned Leave
etc
-------
sree
10th January 2013 From India, New Delhi
Hi Rahim,

For all readers note that in Saudi Arabia, ESB (End of Service benefit) is an amount of money that every employee is entitled to get at end of his job or services. It is given by his employer as per Saudi Labor Law for both Saudi and Expatriates.

In short, I will explain whats ESB is.

"The ESB is based on your Last Monthly Wage (LMW). This is employees last salary plus any other allowances, like monthly transport or housing compensations. You get half of your LMW for each of the first 5 years of service completed and you receive a full LMW for every year after that. To calculate the portion of your ESB for any additional time beyond your last completed year you calculate your daily salary and multiply that by the number of days over your last completed year."

Getting confused, so was I, till I got this formula. Its an awesome and thanks to all SAP professionals.

Here it goes:

Gross salary means= Basic Salary + HRA

Formula for calculation of End of Service (indemnity value) if service period is 1 to 5 years:

(Gross Salary X 0.5) X (Number of days in service / 365) = Indemnity Amount X 1/3

Formula for calculation of End of Service (indemnity value) if service period is 1 to 10 years:

(Gross Salary X 0.5) X (1825 / 365) + (Gross Salary X 1) X (# days in service/365) – (1825/365) = Amount X 2/3

Formula for calculation of End of Service (indemnity value) if service period is more than 10 years:

(Gross Salary X 0.5) X (1825 / 365) + (Gross Salary X 1) X ((#Days of service – 1825) / 365) = Indemnity amount

Now, many will have an argument that Trasnport allowance (TA) and any other allowance, should also be included. But take it from me, when it comes to pay the final exit payment, majority company only pay's Basic+HRA, (Accomodation is not provided by company). If Accomodation is provided by company, you will would only get Basic.

Hope above is helpful.

Ukmitra


21st January 2013 From Saudi Arabia, Riyadh
Dear Ukmitra,
but this term LMW is not mentioned anywhere in Saudi Labor Law......
25th July 2017 From Saudi Arabia, Riyadh
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™