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May 01, 2024 - BY Mohamed Abdulaziz

Calculation of Wages According to Article 96 of the Saudi Labor Law

The ninety-sixth article of the Saudi Labor Law is one of the main pillars regulating the relationship between workers and their wages and rights in the Saudi labor market. This article specifies how wages are calculated in two specific cases, as outlined in the first and second paragraphs of the mentioned text.


Firstly, concerning workers who receive a specified wage based on piecework or production, the average wage earned by the worker during the last year of actual service is calculated. This means that the worker will not resign or terminate their service until their average wage during that period is determined. This procedure aims to secure the rights of the worker and prevent them from resigning with a lower wage than they deserve based on their actual performance.


Secondly, regarding workers who receive their wages based on commissions or percentage of sales, the average daily wage is calculated based on the actual days worked by the worker. This means that the total wage received by the worker for the actual days worked is divided by the number of those days to obtain the average daily wage. This procedure aims to provide an accurate estimate of the worker's wage, especially with the fluctuation of commissions and percentages of sales that may change periodically.


In this way, the ninety-sixth article of the Saudi Labor Law contributes to achieving justice and transparency in estimating workers' wages and ensuring their entitlement to their rights in line with their actual efforts and contributions in the labor market.