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Annual leave pay

Earned leave balance and pay for unused days on leaving employment.

Preparing the tool…

Official sources

The final reference is the official text and your business's account with the competent authority.

What does this tool calculate?

When employment ends, the employee is entitled to pay for the leave days they did not take. The tool calculates the days earned from the start date until leaving, subtracts the days taken, then calculates the leave pay at the daily wage, with a table showing the entitlement for each year.

The statutory rule

  • Article 109 of the Labor Law: a worker is entitled to paid annual leave of no less than 21 days, rising to 30 days after five continuous years with the employer.
  • Article 111: a worker is entitled to pay for earned leave days if they leave work before using them, and for parts of a year in proportion to the time served.

The formulas

  • Days earned = for each year of service: its days ÷ the days in that year (365 or 366) × (21 days in the first five years, and 30 days after that).
  • Leave balance = days earned − days taken.
  • Daily wage = total wage ÷ 30.
  • Leave pay = leave balance × daily wage.

Worked example

An employee started on 1 January 2021 and left on 1 January 2023, with a total wage of 9,000 SAR, and took 30 days of leave:

  • Length of service is 730 days, that is two years, so days earned = 2 × 21 = 42.00 days.
  • Balance = 42 − 30 = 12.00 days, and daily wage = 9,000 ÷ 30 = 300.00 SAR.
  • Leave pay = 12 × 300 = 3,600.00 SAR.

If they had started on 1 January 2018 and left on 1 July 2024 (2,373 days) and taken 60 days: they earn 21 days for each of the first five years and 30 days for the following year, prorated, so days earned are 149.92, the balance is 89.92 days, and the leave pay is 26,975.41 SAR.

Limits of the tool

A year of service runs from the joining date to its next anniversary (365 or 366 days) for proration, so the 30 days start exactly on the fifth anniversary, and the daily wage is based on 30 days. Leave carried over by written agreement between the two parties, or paid during service, is subtracted as part of “Leave days taken”. The final reference is the official text and your business's account with the competent authority.

Frequently asked questions

When does annual leave become 30 days?
After five continuous years with the employer; the tool counts the first five years at 21 days and the years after that at 30.
Is leave pay calculated on the basic salary or the total wage?
The tool calculates it on the wage you enter; the usual practice is the actual wage the employee receives.
What if the employee took more than they earned?
The balance shows as negative and no leave pay is due; the difference is settled according to the contract.

Content last reviewed: 2026-10-28

in FullScreen ERPHR and payrollA complete file for each employee and monthly payroll approval, with payroll entries posted to the accounts automatically. Explore the module

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