When does an overseas Filipino worker (OFW) who works in the Kingdom of Saudi Arabia (KSA) qualifies to receive a retirement pay from his employer? Are you sure you have received the right amount? Do you know how it was computed?
Here is a discussion of our great OFWs in OFWGuide Forum. May this topic be of help to OFWs wondering how they can get their retirement pay.
A forumer named charisma asked how an OFW who worked for some 30 years in Saudi would compute his retirement pay.
Forumer dark_hollywood answered add your one month salary to benefits and vacation pay equals end of service benefits (1 mo. salary + benefits + vacation pay = SR 0000.00).
Here’s how you can get your:
a. End of Service Benefits: One month salary divided by thirty days multiply by 1.25 (30 days/24 months = 1.25) multiply by 24 months (SR0000/30 X 1.25 X 24 = SR 0000.00)
b. Vacation pay: Basic salary divided by thirty days multiply by 1.75 (21 days / 12 months = 1.75) multiply by 24 months. (SR0000/30 X 1.75 X 24 = SR 0000.00)
According to dark_hollywood, the computation above is for two (2) years of service only which is equivalent to 24 months. In vacation pay, the new Saudi Labor Law stated that a worker is entitled of 21 days paid vacation annually. Aside from the amount to be paid by the employer, the employer shall bear the final exit visa and the fees and free Air ticket back to origin of the worker.
There are certain exceptions, though. If an expatriate has resigned within the first two years of service, he is not entitled to any ESB. If he has resigned between two to five years of continuous service, he is entitled to one third of the salary. If he has resigned between five years up to ten years of continuous service, he is entitled to two thirds of the salary and to a full salary, beyond 10 years of continuous service. Again, the definition of "salary" here includes basic pay plus all the allowances, excluding of course, certain exceptions such as sales commissions, etc.,