Business Development, Employee Relations,
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
4. Loyalty Bonus, if any
5. Unavailed and accumulated encashment of Earned Leave
10th January 2013 From India, New Delhi
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.
21st January 2013 From Saudi Arabia, Riyadh