Quick Summary
- Under 5 years service: 21 days annual leave per year
- 5 years and above: 30 days annual leave per year
- Leave salary is calculated on total salary — not just basic
- Unused leave must be paid out — it cannot be forfeited
- Leave accumulates from day one — including probation period
- Employer decides when leave is taken — but cannot deny it indefinitely
- Public holidays falling within leave period extend your leave
Annual Leave Entitlement in Saudi Arabia
Under Article 109 of Saudi Labour Law every worker is entitled to paid annual leave. The amount depends on your length of service:
| Service Period | Annual Leave Entitlement | Per Month Accrual |
|---|---|---|
| Under 5 years | 21 days per year | 1.75 days per month |
| 5 years and above | 30 days per year | 2.5 days per month |
When Does Leave Start Accruing?
Annual leave begins accruing from your very first day of employment — including your probation period. After completing one full year of service you are entitled to take your full annual leave.
In your first year, many companies allow partial leave before the year is completed on a pro-rata basis — but this is a company policy, not a legal requirement. The law requires the full entitlement only after one complete year.
How Is Leave Salary Calculated?
Unlike EOSB which is based on basic salary only, annual leave salary is calculated on your total salary. This is an important distinction that benefits workers significantly.
Total salary includes basic salary plus all fixed allowances — housing, transport, food, mobile and any other regular monthly allowances that are part of your normal package.
Calculate Your Leave Salary
Use our free Leave Salary Calculator to find out exactly how much you should receive for your annual leave — or for unused leave encashment.
Calculate Leave Salary — FreeWho Decides When Leave Is Taken?
Under Saudi Labour Law, the employer has the right to schedule annual leave based on business needs. However, the employer must consider the employee's interests and cannot deny leave indefinitely.
- The employer can require leave to be taken at specific times — for example, during Eid holidays or factory shutdown periods
- The employer can split leave into two parts maximum — but only with the employee's agreement
- The employer cannot force the employee to take all leave in one block if the employee prefers otherwise
- If the employer keeps delaying leave, the employee can file a complaint at HRSD requesting leave approval
Can Unused Leave Be Carried Forward?
Saudi Labour Law does not specify a strict carry-forward limit for unused leave — this is largely governed by company policy. However, two things are absolute:
- Unused leave cannot be forfeited — if the employer prevented you from taking leave, or if leave accumulated due to business needs, it must be paid out
- All unused leave must be paid on termination — regardless of how many years it accumulated
Leave Encashment — Getting Paid for Unused Leave
When your employment ends, all unused annual leave days must be paid out in cash as part of your final settlement. This is called leave encashment and it is a legal right — your employer cannot refuse to pay it.
Public Holidays and Annual Leave
If a public holiday falls during your annual leave period, that holiday day does not count as a leave day. Your leave period is extended by the number of public holidays that fall within it.
For example — if you take 10 days leave and Saudi National Day falls within that period, you actually get 11 calendar days off. The public holiday is added on top of your leave.
Leave During Probation
Leave accrues during probation but you cannot usually take leave during the probation period unless the employer agrees. If your employment ends during probation, you are entitled to the pro-rated leave salary for the days accrued during probation — but only if the employer terminated you. If you leave during probation voluntarily, leave encashment may not apply — check your contract.
Sick Leave vs Annual Leave
Sick leave and annual leave are completely separate entitlements. An employer cannot count sick leave days against your annual leave balance. If you are sick during your annual leave, you can request that those sick days be treated as sick leave instead — but this requires medical documentation and employer agreement.
Common Annual Leave Issues Expats Face
- Employer calculates leave on basic salary only — This is wrong. Leave salary is based on total salary. If your employer does this, the difference can be claimed.
- Employer says unused leave expires — Untrue. Unused leave accumulated due to business requirements cannot be forfeited. It must be paid.
- Leave not approved year after year — This is an HRSD complaint matter. The employer cannot indefinitely deny your right to take leave.
- Leave balance not disclosed — You have the right to know your leave balance at any time. Request it in writing from HR.
- Deducting leave days for partial days absent — Leave is counted in full days. Taking an hour or two off does not count as a leave day unless your contract specifically states this.
Frequently Asked Questions
Do weekends count as leave days?
No. Weekends (Friday and usually Saturday) are not counted as leave days. If your leave period includes weekends they do not reduce your leave balance. Only working days count against your annual leave.
Can my employer cancel my approved leave?
Yes — but only for genuine business emergencies and only with reasonable notice. If your employer cancels already approved leave and you incur costs such as non-refundable flights, you may be able to claim those costs. Get the cancellation in writing.
I resigned — can I use my remaining leave instead of serving notice?
Only with employer agreement. Some employers allow employees to take remaining leave during the notice period to offset part of it. Others require the notice to be served and pay out leave separately. Your employer's choice — but unused leave must be paid either way.
My employer is in Saudi Arabia but I work remotely from my home country. Do Saudi leave rules apply?
If your employment contract is governed by Saudi Labour Law and your iqama is Saudi, then yes — Saudi leave rules apply regardless of where you physically work.
Can I be required to take leave I did not request?
Yes. Employers can schedule mandatory leave during company shutdown periods such as Eid or factory maintenance. This is legal as long as you receive your full leave salary during that period.
Leave Dispute With Your Employer?
Whether your employer is refusing leave, calculating it incorrectly or not paying unused leave on exit — book a consultation for clear guidance on your exact entitlement.