Key Points — Annual Leave at a Glance
- Years 1–5: minimum 21 days paid annual leave per year
- Year 6 onwards: minimum 30 days paid annual leave per year
- Leave salary is based on full salary — basic + all allowances (not basic only)
- Unused leave can be accumulated up to 2 years — then must be taken or paid
- On resignation or termination, all unused leave must be paid out in cash
- Public holidays falling during leave are not counted as leave days
- Governed by Article 109 of the Saudi Labour Law
What Does Article 109 Say?
Article 109 of the Saudi Labour Law establishes the minimum annual leave entitlement for all workers. The law sets two distinct tiers based on length of service — and the transition point of 5 years is what generates most of the confusion around "21 days vs 30 days."
Article 109, Saudi Labour Law:
"A worker shall be entitled to an annual leave of not less than 21 days, to be increased to a period of not less than 30 days if the worker has completed five years in the service of the employer."
Standard Entitlement
Applies from your first year of employment. Minimum 21 paid leave days per year for the first 5 years with the same employer.
Enhanced Entitlement
Applies after completing 5 full years of continuous service with the same employer. Minimum 30 paid leave days per year from year 6 onwards.
How Leave Salary Is Calculated — The Key Difference from EOSB
Leave salary is calculated differently from EOSB. While EOSB uses basic salary only, leave salary is calculated on your full total salary — including housing allowance, transport allowance and all other regular monthly allowances.
Leave Salary Formula
Daily Rate = Total Monthly Salary ÷ 30
Leave Pay = Daily Rate × Number of Leave Days
Total Salary Includes:
✓ Basic Salary
✓ Housing Allowance
✓ Transport Allowance
✓ All regular monthly allowances
Worked Calculation Examples
Example 1 — 3 Years Service (21 Days)
Housing: SAR 2,000
Transport: SAR 800
Total Salary: SAR 7,800
─────────────────────────
Daily Rate = 7,800 ÷ 30
= SAR 260/day
Leave Pay = 260 × 21
Full annual leave salary for 21 days
Example 2 — 7 Years Service (30 Days)
Housing: SAR 3,000
Transport: SAR 1,000
Total Salary: SAR 12,000
─────────────────────────
Daily Rate = 12,000 ÷ 30
= SAR 400/day
Leave Pay = 400 × 30
Full annual leave salary for 30 days
Example 3 — Partial Year Pro-Rata (8 Months)
Full Year Leave: 21 days
Months Worked: 8 months
─────────────────────────
Pro-Rata Days = (21 ÷ 12) × 8
= 14 days
Daily Rate = 9,000 ÷ 30 = SAR 300
Leave Pay = 300 × 14
Pro-rata leave for partial year on exit
Example 4 — Unused Leave Encashment
Unused Leave: 35 days
(accumulated over 2 years)
─────────────────────────
Daily Rate = 10,000 ÷ 30
= SAR 333.33/day
Encashment = 333.33 × 35
Paid out in full settlement on exit
All Leave Types Under Saudi Labour Law
| Leave Type | Entitlement | Paid? | Article |
|---|---|---|---|
| Annual Leave (Years 1–5) | 21 days minimum per year | Yes — full salary | Art. 109 |
| Annual Leave (Year 6+) | 30 days minimum per year | Yes — full salary | Art. 109 |
| Sick Leave | First 30 days: full pay; next 60 days: 75% pay; next 30 days: unpaid | Partial | Art. 117 |
| Maternity Leave | 10 weeks — 4 before, 6 after birth | Yes — full salary | Art. 151 |
| Paternity Leave | 3 days on birth of child | Yes — full salary | Art. 113 |
| Bereavement Leave | 5 days (spouse); 3 days (immediate family) | Yes — full salary | Art. 113 |
| Marriage Leave | 5 days (employee's own marriage) | Yes — full salary | Art. 113 |
| Hajj Leave | Once during employment — up to 10 days | Unpaid (by law) | Art. 114 |
| Study / Exam Leave | As agreed with employer; not less than exam days | Depends on contract | Art. 116 |
Your Legal Rights Around Annual Leave
Right to Take Leave — Cannot Be Cancelled
Your employer cannot permanently cancel or withhold annual leave. Under Article 111, if operational needs require postponing leave, it must be rescheduled within the same year or the following year. Leave cannot be accumulated indefinitely and then denied — it must either be taken or paid out.
Right to Receive Leave Salary in Advance
Under Article 112, the employee is entitled to receive their leave salary before the leave begins — not after returning. If your employer fails to do so, you can file a complaint through Qiwa.
Right to Accumulate Leave for Up to 2 Years
If the employer postpones your leave due to work requirements, unused leave accumulates. The maximum accumulation period is generally 2 years. After 2 years the employer has the right to schedule the leave — but cannot simply cancel it.
Right to Cash Out Unused Leave on Exit
When employment ends — whether by resignation, termination or end of contract — all unused annual leave must be included in the final settlement and paid in cash, calculated on your full total salary at the time of leaving.
Pro-Rata Leave for Partial Years
If you work for a partial year, you are entitled to annual leave pro-rated for the months worked: (annual leave days ÷ 12) × months worked. Any partial month greater than 15 days is counted as a full month. This must be paid in your final settlement.
Public Holidays During Leave Are Not Counted
Public holidays that fall within your annual leave period are not deducted from your leave balance. The same generally applies to your weekly rest days (Friday for most employees) if they fall within a leave period.
What to Do if Your Employer Refuses to Pay Leave Salary
- Raise it in writing first — send an email to HR documenting the specific amount owed and the basis for the calculation.
- File through Qiwa — the Qiwa platform allows employees to raise labour disputes directly online.
- File through HRSD — file at hrsd.gov.sa or in person at an HRSD office.
- Labour Court — if the dispute is not resolved, the Labour Court can order payment plus additional compensation. Leave salary claims must generally be filed within 12 months of the violation.
Related Labour Law Guides
Frequently Asked Questions — Annual Leave Saudi Arabia
How many days annual leave in Saudi Arabia?
Under Saudi Labour Law Article 109, employees are entitled to a minimum of 21 days paid annual leave per year for the first 5 years of service. After completing 5 years of continuous service with the same employer, the entitlement increases to a minimum of 30 days per year.
When does annual leave increase from 21 days to 30 days?
The entitlement increases after the employee completes 5 full years of continuous service with the same employer. The increase applies from the start of the 6th year. If you change employers, the 5-year count resets.
How is annual leave salary calculated in Saudi Arabia?
Leave salary is calculated on your full total salary — basic salary plus all regular allowances including housing and transport. The daily rate is total monthly salary divided by 30, multiplied by the number of leave days.
Can I carry forward unused annual leave in Saudi Arabia?
Yes — employees can accumulate unused annual leave for up to two years. After that the employer has the right to schedule the leave. Upon termination or resignation, all unused accumulated leave must be paid out as part of the final settlement.
Can my employer force me to take annual leave?
Yes — under Article 111, the employer has the right to determine when annual leave is taken, taking into account the employee's preferences and operational needs. The employer must notify the employee at least 30 days before the scheduled leave.
What happens to my unused leave if I resign or am terminated?
All unused annual leave must be paid out in cash as part of your final settlement — whether you resign, are terminated, or your contract ends naturally. The payment is calculated on your full salary at your salary rate on the date of leaving.
Does annual leave include Fridays and Saturdays?
For employees on a 5-day week (Sunday to Thursday), Friday and Saturday are weekly rest days and are generally not counted as annual leave days. Public holidays that fall during annual leave are also not counted — they are added back to your leave balance.
What is the difference between annual leave and the air ticket allowance?
Annual leave is the number of paid days off you are legally entitled to. The air ticket allowance is a separate benefit — typically one economy class return ticket to your home country per year — which many employers provide. The air ticket is not required by Saudi Labour Law but is commonly included in expat packages.