Saudi Annual Leave Calculator – KSA Labour Law 2024

Understanding how annual leave works in Saudi Arabia is essential for every employee and HR professional operating in the Kingdom. Whether you are planning a vacation, calculating your final settlement, or managing payroll for a team, knowing the rules set out under the Saudi Labour Law ensures you receive every riyal you are owed. ## The Legal Framework: Articles 109 and 111 Saudi annual leave entitlement is governed primarily by Articles 109 and 111 of the Saudi Labour Law, enforced by the Ministry of Human Resources and Social Development (HRSD) and managed digitally through the Qiwa platform. **Article 109** establishes the core entitlement: - **21 calendar days** of paid annual leave for employees who have completed at least one year but fewer than five consecutive years of service. - **30 calendar days** of paid annual leave for employees who have completed five or more consecutive years with the same employer. The law also specifies that leave pay must be made in advance before the employee begins their leave — not after they return. This is a frequently misunderstood requirement that both employees and finance teams should note. **Article 111** governs leave on termination: any accrued but unused annual leave must be paid in full upon end of service, whether the employee resigns, is terminated, or completes a fixed-term contract. ## What Is the "Actual Wage" for Leave Salary Calculation? One of the most important distinctions in Saudi leave salary calculation is the concept of the **Actual Wage**. Many employees and even some HR departments mistakenly calculate leave pay using only the basic salary. This is incorrect under Saudi Labour Law. The Actual Wage includes: - **Basic salary** - **Housing allowance** (if fixed and paid regularly) - **Transport allowance** (if fixed and paid regularly) - **Food allowance** (if fixed and paid regularly) - **Any other fixed, regular allowances included in the employment contract** Variable bonuses, commission payments, and irregular allowances are generally excluded. The daily rate is then: > **Daily Rate = Monthly Actual Wage ÷ 30** And the total leave pay due is: > **Leave Pay = Daily Rate × Number of Leave Days** For example, an employee earning SAR 8,000 per month (including all fixed allowances) who is entitled to 21 days of annual leave would receive: (8,000 ÷ 30) × 21 = **SAR 5,600** as advance leave payment. ## Pro-Rata Leave Calculation for Partial Years Employees who have not completed a full year still accrue leave entitlement proportionally. This is particularly relevant for: - New joiners calculating their first partial-year leave - Employees leaving mid-year who want to calculate their leave encashment entitlement on termination The formula for pro-rata entitlement is: > **Pro-rata Days = (Months Worked / 12) × Annual Entitlement Days** An employee who has worked 8 months under the 21-day tier would be entitled to (8 ÷ 12) × 21 = **14 days** of leave pay. ## How Annual Leave Works on Termination in KSA Upon end of service — whether through resignation, mutual agreement, or dismissal — the employer must settle all outstanding leave obligations. This means: 1. Calculating the total leave days accrued over the full period of service (accounting for the 21-day vs 30-day tier switch if applicable). 2. Deducting any leave days already taken. 3. Multiplying the remaining unused days by the daily actual wage at the time of termination. Employers who fail to pay out accrued leave are in violation of Saudi Labour Law and can face complaints through the Qiwa platform or HRSD channels. ## Annual Leave in Saudi Arabia vs GCC Countries For professionals working across the Gulf, understanding how Saudi Arabia's vacation pay rules compare to neighbouring countries is valuable: | Country | Annual Leave Entitlement | Calculation Basis | |---|---|---| | Saudi Arabia (KSA) | 21 days (< 5 yrs) / 30 days (5+ yrs) | Actual Wage ÷ 30 per day | | UAE | 30 calendar days (after 1 year) | Basic salary + allowances | | Qatar | 21 calendar days minimum | Basic salary | | Kuwait | 30 working days | Full salary | | Bahrain | 30 calendar days | Full wage | | Oman | 30 calendar days | Basic wage | The UAE holiday pay rules are notably more generous from the start — 30 days after just one year of service compared to Saudi Arabia's tiered approach. However, Saudi Arabia's leave salary calculation using the full actual wage (including allowances) can result in a higher daily rate in packages where allowances form a large portion of the total package. ## Practical Tips for Employees **Know your tier.** Track your employment start date carefully. The switch from 21 to 30 days entitlement happens the moment you complete your fifth year with the same employer. If you change employers, the clock resets. **Understand what's included in your actual wage.** Before accepting a job offer, clarify which allowances are fixed and contractual vs. discretionary. This directly affects your vacation pay entitlement. **Request advance payment.** Under Saudi Labour Law, your employer is required to pay your leave salary before you take your leave, not after you return. If your employer consistently pays late or withholds this, you have grounds for a formal complaint. **Document your leave balance.** Keep track of leave days taken each year and request an annual leave statement from your HR department. This protects you when calculating your end-of-service settlement. **Use the Qiwa portal.** Saudi Arabia's Qiwa platform (qiwa.sa) provides digital tools for both employers and employees to track labour contract terms, including leave entitlements. It is the official government platform and disputes can be filed there. ## Labour Law Leave Salary: Common Mistakes to Avoid 1. **Calculating on basic salary only** — Always use the full actual wage including fixed allowances. 2. **Confusing working days with calendar days** — Saudi leave is counted in calendar days. A leave period including two weekends still counts those days. 3. **Assuming leave can be cashed out during employment** — It generally cannot. You must take the leave, or it must be paid out at end of service. 4. **Ignoring the 5-year tier** — Employees and HR teams sometimes miss the entitlement upgrade at the 5-year mark, underpaying leave salary. ## Using the Saudi Annual Leave Calculator This annual leave calculator for KSA is designed to handle three common scenarios: - **Annual Leave Pay during employment**: Enter your actual monthly wage and years of service to get the full leave pay due before your vacation. - **Pro-rata entitlement**: For partial years, enter the months worked to calculate the proportional leave days and pay. - **Accrued leave on termination**: Calculate your full unused leave settlement, including a partial year, to verify what your employer owes you. The tool applies the correct 21-day or 30-day tier automatically based on your years of service and computes the daily rate using the divide-by-30 standard established under Saudi Labour Law. *This calculator is for informational purposes based on the Saudi Labour Law. For specific legal advice or dispute resolution, consult official HRSD resources at hrsd.gov.sa, the Qiwa platform, or a qualified legal expert in KSA.*