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End-of-service award: how it is calculated

Half a month per year for the first 5 years, a full month per year after that, with reduced shares on resignation.

General rule (Art. 84)

  • Half a month's wage per year for the first five years.
  • A full month's wage for each year after that.
  • Fractions of a year count pro rata.
  • Based on the last actual wage (basic plus fixed allowances unless the contract says otherwise).

On resignation (Art. 85)

  • Under 2 years: no award.
  • 2 to under 5 years: one third.
  • 5 to under 10 years: two thirds.
  • 10 years or more: the full award.

Full award despite resignation (Art. 87)

E.g. leaving due to force majeure, or a female worker ending the contract within 6 months of marriage or 3 months of giving birth.

When is it paid?

Within one week if the employer ended the relationship, and within two weeks if the worker did (Art. 88).

Last reviewed: 2026-11-02