How to Calculate Vacation Entitlements in Saudi Arabia (2025 Guide)

Paid time off isn’t just a perk; it’s a legal right in Saudi Arabia. Whether you're an HR manager or an employee, understanding how vacation entitlements are calculated under Saudi Labor Law is essential for staying compliant and avoiding disputes.

In this 2025 guide, you’ll find everything you need to know about annual leave in Saudi Arabia: how it’s calculated, how it affects payroll, who qualifies, and how different types of leave (such as Hajj, sick, or maternity leave) are handled.

Table of Contents

1. Vacation Entitlements Under Saudi Labor Law (2025 Overview)
2. Who is Eligible for Paid Leave?
3. How to Calculate Vacation Days in Saudi Arabia
4. Public Holidays vs. Annual Leave
5. Special Leave Types in Saudi Arabia
6. Vacation Salary Calculation
7. Common Mistakes HR Should Avoid
8. FAQs: What People Also Ask
9. Final Thoughts
   
   
   

Vacation Entitlements Under Saudi Labor Law (2025 Overview)

According to Article 109 of the Saudi Labor Law, all employees are entitled to paid annual leave. This applies to both Saudi nationals and expat workers under official employment contracts.

Key Leave Entitlements:

Employees must take their leave during the year it is earned unless postponed by mutual agreement.

📝Note: The law mandates a minimum, but some companies offer more generous policies based on contracts or internal regulations.

Who is Eligible for Paid Leave?

To qualify for full annual leave, an employee must:

• Be under a valid employment contract (fixed or indefinite)
• Complete 12 months of continuous service
• Not be on probation during the leave accrual period
  
  

However, pro-rated leave can still be calculated for employees who have not yet completed a full year.

How to Calculate Vacation Days in Saudi Arabia 🧮 

Step-by-Step Calculation for 2025

Let’s assume an employee joined on March 1, 2024, and is still employed in 2025.

1. Determine the Accrual Rate

• 21 days per year = 1.75 days/month
  
• 30 days per year = 2.5 days/month (after 5 years of service)
  
  

2. Pro-Rated Example

If the employee worked 9 months by December 2024:
1.75 × 9 = 15.75 days of paid leave earned

3. Full-Year Calculation

For a full year:

• Standard entitlement: 21 days
• Long-term service: 30 days
  
  

Round up fractions when issuing leave days—Saudi labor courts often favor employees in such cases.

Public Holidays vs. Annual Leave

Public Holidays (Do NOT count as annual leave):

Employees in Saudi Arabia are entitled to paid public holidays, including:

• Eid Al-Fitr
• Eid Al-Adha
• Saudi National Day (Sep 23)
• Founding Day (Feb 22)

If a public holiday overlaps with scheduled annual leave, it should not be deducted from the employee's vacation balance.

Special Leave Types in Saudi Arabia (2025)

Besides annual vacation, the law also provides for other types of paid and unpaid leave:

Note: These special leaves cannot be deducted from the employee’s annual vacation balance.

How to Calculate Vacation Salary in Saudi Arabia 

Employees must receive full salary during vacation days, based on their actual earnings (not just base salary).

What to Include:

• Base Salary
• Housing Allowance
• Transportation Allowance
• Other fixed monthly allowances
  
  

Formula:

(Monthly salary ÷ 30) × number of leave days = vacation pay

For example:
SAR 9,000/month ÷ 30 = SAR 300/day
→ 21 days × SAR 300 = SAR 6,300

Vacation salary should be paid in advance before the employee starts their leave, as per Article 109.

Common Mistakes HR Should Avoid

❌ Deducting public holidays from vacation balance

❌ Not paying vacation salary in advance

❌ Excluding allowances from salary calculation

❌ Failing to update leave balances in real-time

❌ Ignoring pro-rated leave for partial-year employees

❌ Assuming resignation cancels unused leave rights

FAQs: What People Also Ask

1.How many vacation days are employees entitled to in Saudi Arabia?

Employees are entitled to at least 21 paid vacation days per year, increasing to 30 days after five years of continuous service.

2.How is vacation pay calculated in Saudi Arabia?

Vacation pay is based on the employee’s full monthly salary, including fixed allowances. The formula is: (Monthly salary ÷ 30) × number of vacation days

3.Do public holidays count against annual leave?

No. Public holidays such as Eid, National Day, or Founding Day do not count toward annual vacation days and should not be deducted.

4.Can employees carry over unused vacation?

Yes, but only with employer approval. Unused leave should typically be used within the next calendar year unless otherwise agreed upon.

5.Is it mandatory to pay vacation salary in advance?

Yes. As per Article 109 of the Saudi Labor Law, vacation salary must be paid before the employee takes their leave.

It’s More Than Just Vacation

Understanding and calculating vacation entitlements in Saudi Arabia isn’t just about doing right by your employees; it’s about staying legally compliant and building a healthier work culture.

By mastering the rules outlined in this 2025 guide, you’ll avoid payroll errors, reduce disputes, and ensure your employees get the rest they deserve. Whether you're processing leave in ZenHR or managing it manually, consistency and accuracy are key.