🇸🇦 Saudi Labor Law • Articles 109 & 111 Compliance

Saudi Annual Leave Encashment Calculator

حاسبة مقابل رصيد الإجازات السنوية المستحقة (المادتان 109 و111)

Calculate statutory annual leave entitlement and financial cash encashment for accumulated unused leave days under Articles 109 and 111 of the Saudi Labor Law. Whether performing routine annual leave reconciliation or computing final dues upon contract termination, this calculator delivers an exact, Qiwa-compliant valuation of your leave balance in microseconds.

Under Article 109, employees are legally entitled to 21 calendar days of paid leave annually for the first five years of service, escalating to 30 calendar days upon completing five continuous years. Leave encashment under Article 111 is evaluated on the worker's full actual wage (basic salary plus housing allowance and guaranteed fixed allowances) using the statutory 30-day monthly divisor.

Salary & Leave Parameters

Service ≥ 5 years triggers the mandatory 30-day statutory tier under Article 109.
SAR
SAR
Mandatory inclusion under Article 2 definition of 'Actual Wage'.
SAR
Unused accrued leave days carried forward with employer consent under Article 110.
Used to calculate prorated annual leave earned in the current service year.

Leave Encashment Settlement Summary

Net Payable Leave Encashment (صافي التعويض النقدي لرصيد الإجازات)
SAR 0.00
Accrual Rate: 2.50 Days / Month (30 Days / Year)
Total Actual Monthly Wage SAR 0.00
Statutory Daily Wage Rate SAR 0.00 / day
Annual Statutory Entitlement 30 Days / Year
Current Cycle Accrued Days 0.00 Days
Total Net Unused Leave Days 0.00 Days
Divisor Standard (Qiwa) 30 Calendar Days

Saudi Labor Law Annual Leave Encashment Benchmark Matrix

Comparative reference illustrating daily wage rates and the cash value of 10, 21, and 30 unused leave days across monthly actual salary brackets (using the statutory 30-day calendar divisor).

Actual Monthly Wage Daily Rate (Wage ÷ 30) Monthly Accrual (<5 Yrs: 21d) Monthly Accrual (≥5 Yrs: 30d) Encashment: 10 Days Encashment: 21 Days Encashment: 30 Days
SAR 4,000 SAR 133.33 1.75 days 2.50 days SAR 1,333.33 SAR 2,800.00 SAR 4,000.00
SAR 6,000 SAR 200.00 1.75 days 2.50 days SAR 2,000.00 SAR 4,200.00 SAR 6,000.00
SAR 9,000 SAR 300.00 1.75 days 2.50 days SAR 3,000.00 SAR 6,300.00 SAR 9,000.00
SAR 12,000 SAR 400.00 1.75 days 2.50 days SAR 4,000.00 SAR 8,400.00 SAR 12,000.00
SAR 15,000 SAR 500.00 1.75 days 2.50 days SAR 5,000.00 SAR 10,500.00 SAR 15,000.00
SAR 20,000 SAR 666.67 1.75 days 2.50 days SAR 6,666.67 SAR 14,000.00 SAR 20,000.00
SAR 30,000 SAR 1,000.00 1.75 days 2.50 days SAR 10,000.00 SAR 21,000.00 SAR 30,000.00

Frequently Asked Questions — Saudi Annual Leave Encashment (أسئلة شائعة)

What is the statutory annual leave entitlement under Saudi Labor Law?

Under Article 109 of the Saudi Labor Law, an employee is entitled to a minimum of 21 calendar days of paid annual leave for each of the first five years of service. After completing five consecutive years of service with the same employer, the annual entitlement increases to not less than 30 calendar days.

How is the daily wage calculated for annual leave encashment?

Under MHRSD guidelines and Article 2 of the Saudi Labor Law, leave encashment is calculated based on the employee's last drawn 'Actual Wage' (basic salary plus housing allowance and guaranteed fixed allowances) divided by 30 days.

Can an employee cash out unused annual leave while still working?

Under Article 110, annual leave is designed for worker recuperation. An employee cannot waive their right to leave during active employment. However, if mutually agreed in writing, companies can encash days beyond the statutory minimum, and upon contract termination, all accumulated unused days must be encashed under Article 111.

What is the monthly leave accrual rate under Saudi Labor Law?

For employees entitled to 21 days annually, leave accrues at 1.75 days per completed calendar month (21 / 12). For employees entitled to 30 days annually, leave accrues at 2.50 days per completed calendar month (30 / 12).

Can an employer force an employee to forfeit unused annual leave?

No. Under Article 111, upon termination of the employment relationship, the worker is legally entitled to cash compensation for all earned, unused leave days up to the date of departure, regardless of whether the termination was by employer dismissal or employee resignation.

📊 Saudi Statutory Comparative Breakdown Matrix (جدول المستحقات النظامية)

Statutory Article / Obligation Calculated Value
Primary Settlement / Net Amount 0.00 SAR
Audited & Maintained By
Principal Hardware & Web Systems Engineer

Specializing in GCC statutory computation engines, cross-border labor compliance algorithms, and high-frequency client-side web architectures. All formulas audited against the official Saudi Ministry of Human Resources and Social Development (MHRSD) Labor Law and Qiwa platform standards.