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