How annual leave is calculated in Saudi Arabia

Who this guide covers

This guide is for employees governed by Saudi Labour Law. Domestic workers, civil-service employees and some other categories may be governed by separate rules. Check the legal regime and the employment contract before applying the calculation.

The statutory figures are minimums. An employment contract, certified work regulation or collective arrangement may give more leave. An employer should not use a less generous contract term to reduce the statutory entitlement.

Annual leave entitlement

Article 109 provides annual leave of not less than 21 days for each year of service. It increases to not less than 30 days where the worker has spent five consecutive years in the employer’s service. The key point is continuous service with that employer, not simply total career experience.

• Use 21 days as the statutory annual entitlement before the five-consecutive-year threshold, unless the contract gives more.
• Use at least 30 days after five consecutive years with the same employer.
• For a partial year, HR systems commonly accrue a proportion of the annual entitlement, but the contract and employer policy should state how fractions and rounding are handled.
• Do not apply these figures automatically to domestic workers or government employment.

How to estimate accrued leave

A practical estimate is:

Annual entitlement × completed service in the leave year ÷ length of the full leave year.

For a monthly estimate, many payroll teams use annual entitlement divided by 12, multiplied by completed months. This is an estimate rather than a substitute for the employer’s official leave record. Joining dates, unpaid absence, contract wording, an employer’s defined leave year and rounding can alter the result.

Ask HR for a statement showing opening balance, leave earned, leave taken, adjustments and closing balance. Compare it with approved leave requests rather than relying solely on a payslip total.

What should be paid

Saudi Labour Law states that annual leave is paid and that leave pay is to be paid in advance. The value should be calculated using the wage basis legally applicable to the employee. Whether a particular allowance forms part of that basis depends on its nature and the contract; it is unsafe to say that every transport, housing, commission or variable payment must always be included.

Request a written payroll calculation if the amount differs from normal pay. It should identify the wage components used, the number of leave days and any lawful adjustment.

Scheduling and postponing leave

• The employer may set leave dates according to work requirements and should notify the worker at least 30 days in advance.
• Leave should be taken in the year it falls due.
• The employer may postpone leave under the limits in Article 110. Further postponement requires the worker’s written consent and remains subject to the statutory time limit.
• A worker should not waive annual leave for cash while still employed.
• On termination, Article 111 provides payment for accrued leave not taken, including the relevant proportion of the final year.

Public holidays, sick leave and annual leave have separate legal rules. Ask HR to explain any overlap using the current Labour Law and implementing regulations; do not assume that a social-media example applies to every absence.