Leave pay
In one sentenceThe amount paid to the employee for annual leave days, either before going on leave or in cash for the unused balance when the contract ends.
Simply put
Leave pay is calculated by multiplying the number of days by the daily wage, and the daily wage is usually the monthly wage divided by 30.
When the contract ends, pay is due for the days remaining in the balance, so it is a key part of the final settlement.
Worked example
An employee at a beauty center had 12 days left in her balance when her contract ended, and her total wage is 6,000 SAR.
Daily wage: 6,000 ÷ 30200
Remaining balance12 days
12 × 2002,400
Leave pay due2,400 SAR
Formula: Leave pay = number of days × (monthly wage ÷ 30)