How annual leave pay is calculated in Saudi Arabia
Leave pay must be paid in advance and is based on the full wage (Article 109). Accrued leave not taken is paid out on termination at the last wage (Article 111). Fridays and public holidays falling during leave are counted as leave.
Worked example
SAR 9,000 per month, 18-day balance: 9,000 ÷ 30 = 300 per day × 18 = SAR 5,400.
Annual leave across the GCC
| Country | Entitlement | Pay basis |
|---|---|---|
| UAE | 30 calendar days per year after one year of service (2 days per month between 6 and 12 months) | Basic (encashment) |
| Qatar | 3 weeks (21 days) per year for under 5 years' service; 4 weeks (28 days) after 5 years | Basic (encashment) |
| Saudi Arabia | 21 days per year, rising to 30 days after 5 consecutive years | Full wage |
| Oman | 30 days per year after six months' service | Full wage |
| Bahrain | 30 days per year after one year (2.5 days per month) | Full wage |
| Kuwait | 30 working days per year after nine months' service | Full wage |
Frequently asked questions
How many days of annual leave am I entitled to in Saudi Arabia?
21 days per year, rising to 30 days after 5 consecutive years. Legal basis: Saudi Labour Law, Art. 109–111.
How is leave salary calculated in Saudi Arabia?
Daily rate = monthly wage (basic + housing + fixed allowances) ÷ 30; leave pay = daily rate × leave days. Example: SAR 9,000 and 18 days → SAR 5,400.
Is leave salary based on basic or full salary in Saudi Arabia?
On the full wage — basic plus regular allowances — not basic alone.
Can I encash my annual leave instead of taking it?
Only by agreement with the employer and within the limits of the law; employers cannot force you to encash the statutory minimum. All accrued, untaken leave must be paid out when employment ends.
Do public holidays and weekends count as leave days?
Yes — leave is counted in calendar days, so weekends inside the leave period are consumed. Public holidays falling within leave are generally not deducted in practice, but check your contract.
How is leave accrued for part of a year?
Pro-rata: entitlement × (months worked ÷ 12). After 12 months of service you can start taking leave; before that it accrues but may not be taken.
What happens to my leave balance when I resign?
It is paid out in your final settlement at the applicable daily rate, together with your gratuity and notice-period pay.