Saudi Arabia
Saudi Labor Law, Article 109: annual leave
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To check this, or for anything official:
Ministry of Human Resources and Social Developmenthrsd.gov.sa
What your unused balance is worth in SAR, at the last wage under Article 111.
Enter your wage, your length of service and the leave you have taken. Article 109 gives 21 days a year, rising to 30 after five consecutive years, and Article 111 makes the unused balance payable in cash when the service ends, at the last wage.
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How is leave salary calculated?
- first 5 years: 21 days a year · after 5 years: 30 days a year
- Unused balance = accrued − taken
- Daily wage = (basic + fixed allowances) ÷ 30
- Leave salary = unused balance × daily wage
Symbols
- accrued
- Leave days built up over your service, including fractions
- taken
- Days you have actually used from the balance
- daily wage
- Worked out on basic + fixed allowances divided by 30 days
What is the leave balance worth on 10,000?
An employee with a monthly wage of 10,000 SAR (8,000 basic + 2,000 housing allowance) has 7 years of service and has taken only 10 days of leave.
- Days accrued: 5 years × 21 days = 105 days, then 2 years × 30 days = 60 days; total 165 days
- Unused balance: 165 − 10 = 155 days
- Daily rate: 10,000 ÷ 30 = 333.33 SAR
- Unused leave pay: 155 × 333.33 = 51,666.67 SAR
The employee is owed 51,666.67 SAR for the balance when the employment ends under Article 111, and the current entitlement is 30 days a year because service has passed five consecutive years.
How does leave accrue, and which wage pays it out?
Under Article 109 of the Saudi Labor Law, a worker earns an annual leave of at least 21 days for each year, rising to 30 days once five consecutive years with the same employer are completed. The leave is paid, and the pay is due in advance, before the leave starts.
Leave is paid at the actual wage, meaning the basic salary plus fixed allowances such as housing and transport (Article 2). The calculator divides the monthly wage by 30 to get the daily rate, then multiplies it by the number of days.
If the employment ends before the balance is used, Article 111 entitles the worker to pay for the leave days earned but not taken, and for fractions of a year in proportion to the period worked, calculated on the last wage.
- First five years: 21 days per year (1.75 days per completed month)
- After five consecutive years: 30 days per year (2.5 days per completed month)
- Daily rate = actual monthly wage (basic + fixed allowances) ÷ 30
- Cash-out = unused days × the daily rate at the last wage (Article 111)
Questions about leave balance and cashing it out
Do allowances count towards annual leave pay in Saudi Arabia?
Yes. Leave is paid at the actual wage, meaning the basic salary plus fixed allowances such as housing and transport, both while on leave and when the balance is cashed out at the end of service. This differs from the UAE, where unused leave is cashed out at the basic salary only.
When does my annual leave rise from 21 to 30 days?
After completing five consecutive years with the same employer, under Article 109. The calculator uses 21 days for each of the first five years and 30 days for every year after that; these are minimums, and your contract or company policy may grant more.
Can I take cash instead of my leave while still employed?
No. Article 109 requires the worker to take the leave in the year it is earned and does not allow waiving it or taking cash in lieu during service. With the employer's approval the leave, or some of its days, may be postponed to the following year (Article 110); cash is only paid when you leave the job (Article 111).
I resigned. Am I still paid for unused leave?
Yes. Article 111 gives the worker pay for the leave days earned but not taken whenever the employment ends, whatever the reason, and the resignation fractions that apply to the end-of-service award do not apply here. The leave pay is settled with the other entitlements within one week if the employer ended the contract, or two weeks if the worker did (Article 88).
How is leave pay calculated for part of a year?
In proportion to the part of the year worked, under Article 111. The calculator counts completed months only: 1.75 days per month during the first five years and 2.5 days per month after that, so 6 months in the first year earns 10.5 days.
When is annual leave pay due?
In advance. Article 109 states that annual leave is paid leave with the pay due in advance, before the worker starts the leave. The employer may schedule leave according to work needs or grant it in rotation, but must notify the worker of the date at least 30 days ahead.
Sources
Read against the statuteReviewed September 2026- Labor Law: Royal Decree No. M/51 dated 23/8/1426H (Bureau of Experts at the Council of Ministers)
- Labor Law, consolidated text (PDF, Arabic): Ministry of Human Resources and Social Development
Statutory articles this calculator applies
- Saudi Labor Law, Article 109: annual leave
- Saudi Labor Law, Article 111: leave pay on end of service
Saudi Labor Law: Royal Decree No. M/51 dated 23/8/1426H (27 Sep 2005), as amended (latest amendment Royal Decree No. M/44 of 1446H, in force 2025-02-19)