How it is calculated
- Half a month’s wage for each of the first five years and a full month’s wage for each year after, with part-years counted pro rata (Article 84).
- The wage used is the last actual wage: basic pay plus fixed allowances such as housing and transport.
- On resignation (Article 85): nothing under two years, one third from two to under five, two thirds from five to under ten, and the full amount after ten years.
- It is paid in full when the contract ends or the employer terminates it other than under Article 80, and in the Article 87 cases such as force majeure.
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Explore FADx HaderCommon questions
Do allowances count towards the benefit?
Yes. It is based on the last actual wage — basic pay plus fixed allowances such as housing and transport — unless the contract says otherwise in the employee’s favour.
What does someone who resigns after three years get?
One third of the benefit: half a month × 3 years = one and a half months, and a third of that is half a month of the last actual wage.
Are extra months and days counted?
Yes — part-years are paid in proportion to the time worked.
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We activate a free trial account for your company and send you the sign-in link — your staff check in from a browser, a phone or a fingerprint terminal.