Saudi Arabia Leave Salary & Encashment Calculator
Work out the value of your unused annual leave — instantly, per Saudi Labor Law (Royal Decree M/51), Article 109 & 111
Leave salary calculator
Based on Saudi Labor Law (Royal Decree M/51), Article 109 & 111
Quick answer
In Saudi Arabia, unused annual leave is paid out on your actual wage (basic salary plus allowances): vacation pay = (monthly wage ÷ 30) × unused leave days. Article 111 of the Labor Law entitles you to it whenever you leave without having used the leave, including the part of the final year you worked, whether you resign or are terminated. While you are still employed you cannot cash leave in; Article 109 requires it to be taken.
At a glance
- Payout base
- Actual wage (basic + allowances)
- Daily wage
- Monthly wage ÷ 30
- When it is paid
- On leaving, for every unused day (Art. 111)
- Cash in lieu during service
- Not allowed (Art. 109(2))
- Law
- Labor Law, Art. 109 & 111
How Saudi leave salary works
Article 111 requires the employer to pay you for the annual leave you earned but did not take when your employment ends, and for the part of the last year in proportion to the time you worked. Unlike the UAE, the payout is calculated on the actual wage, basic salary plus allowances, with the daily wage being the monthly wage divided by 30.
How many days you have earned is a separate question: 21 a year, rising to 30 after five consecutive years (Article 109). The annual leave calculator counts them for you.
Article 111 of the Saudi Labor Law: when vacation pay is due
Saudi law uses two payments that people both call vacation pay. While you are employed, Article 109 gives you your annual leave with its wage paid in advance, and forbids giving up the leave or taking cash instead of it during your service. When you leave, Article 111 converts whatever leave is left into money: every earned day you did not use, plus the fraction of the final year.
The payout does not depend on why the job ended. A resignation, a termination and the end of a fixed-term contract all trigger it, and it sits alongside your end-of-service award rather than replacing it.
| Situation | What you receive | Article |
|---|---|---|
| Taking annual leave while employed | Leave wage paid in advance | Art. 109(1) |
| Asking to cash in leave during service | Not allowed; the leave must be taken | Art. 109(2) |
| Leaving with unused leave | Wage for every unused day + the part-year | Art. 111 |
Saudi Labor Law (Royal Decree M/51), Articles 109 and 111, from the official Arabic text as amended to 1446 AH. Daily wage = monthly wage ÷ 30 (Art. 2 defines a month as 30 days).
How leave salary (vacation pay) is calculated under Article 111
- 1
Find your accrued leave
1.75 days per month in the first 5 years (21/year), then 2.5 days per month (30/year).
- 2
Subtract leave taken
Deduct annual-leave days already used to get your unused balance.
- 3
Find the daily wage
Divide your monthly wage (basic + allowances) by 30.
- 4
Multiply
Unused days × daily wage = your vacation pay.
Worked examples
SAR 10,000 wage, 3 years, 0 taken
- Accrued: 1.75 × 36 = 63 days
- Daily wage: 10,000 ÷ 30 = SAR 333.33
- 63 × 333.33 = SAR 21,000
SAR 12,000 wage, 7 years
- Accrued: 1.75 × 60 + 2.5 × 24 = 165 days
- Daily wage: 12,000 ÷ 30 = SAR 400
- 165 × 400 = SAR 66,000
Frequently asked questions
How is vacation pay calculated in Saudi Arabia?
Divide your monthly wage, including fixed allowances, by 30 to get the daily wage, then multiply by the earned leave days you have not used. On SAR 10,000 a month, 63 unused days are worth SAR 21,000 (Article 111).
Is leave salary calculated on basic or full wage in Saudi Arabia?
On the actual wage, basic salary plus allowances, under Article 111 of the Saudi Labor Law. The daily wage is the monthly wage divided by 30.
Do I get paid for unused leave when I resign?
Yes. Article 111 entitles you to payment for all accrued but untaken annual leave when your employment ends, whether you resign or are terminated.
Can I cash in my annual leave while I am still employed?
No. Article 109(2) says you must take your leave in the year it falls due and may not give it up or receive cash in place of it during your service. Leave becomes money only when you leave, under Article 111.
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