Dear all, I have a question based on end of service allowance.
We are an international company based in Spain and we have now formed a company in Saudi Arabia. We sent a few of our Spanish employees to Saudi Arabia for the work continuation and we agreed to the salary as per the Spanish agreement.
Employee´s salary as per contract (if we ignore the variation formula) would be 20,750.00 SAR/month. The salary received last month after applying the contract formula was 17,500.00 SAR. For the purposes of calculating the End of Service allowance, the last wage amount would be the 20,750.00 SAR ( according to contract) or the 17,500.00 SAR ( actually received).
Please note it is as per provision (84) of the Saudi labor law “the ESA shall be calculated on the basis of the last wage”.
We are an international company based in Spain and we have now formed a company in Saudi Arabia. We sent a few of our Spanish employees to Saudi Arabia for the work continuation and we agreed to the salary as per the Spanish agreement.
Employee´s salary as per contract (if we ignore the variation formula) would be 20,750.00 SAR/month. The salary received last month after applying the contract formula was 17,500.00 SAR. For the purposes of calculating the End of Service allowance, the last wage amount would be the 20,750.00 SAR ( according to contract) or the 17,500.00 SAR ( actually received).
Please note it is as per provision (84) of the Saudi labor law “the ESA shall be calculated on the basis of the last wage”.