Home › Annual Leave Encashment Calculator
Annual Leave Encashment Calculator — Saudi Arabia
What is annual leave encashment in Saudi Arabia? It is the payout of earned-but-unused annual leave when employment ends, at your wage (monthly wage ÷ 30) per unused day. Under Article 109 of the Saudi Labor Law (Royal Decree M/51), workers get 21 days of annual leave per year, rising to 30 days after five consecutive years with the employer.
Calculate your leave encashment ESTIMATE ONLY
How it works: daily wage = monthly wage ÷ 30. Leave encashment = unused days × daily wage. Payout of unused balance normally happens at final settlement.
The rules (Article 109)
Annual leave in Saudi Arabia is governed by Article 109 of the Saudi Labor Law (Royal Decree M/51). The key points, as of October 2026:
- Minimum entitlement: 21 days of paid annual leave per year.
- After 5 consecutive years with the same employer: the entitlement rises to 30 days per year.
- Leave wages are paid in advance — you receive your leave pay before you go.
- The employer sets the dates, notifying you at least 30 days ahead.
- Unused leave days are normally paid out when employment ends, at your wage rate per unused day — this is the encashment line in your final settlement.
21 vs 30 days: the two tiers
| Service with the same employer | Annual leave entitlement | Notes |
|---|---|---|
| Under 5 consecutive years | 21 days/year | The statutory minimum for every worker. |
| 5 consecutive years or more | 30 days/year | The “consecutive” and “same employer” parts matter — changing jobs restarts the count. |
Your contract or company policy may grant more than the statutory minimum — the figures above are the legal floor, not a ceiling.
Encashment vs taking the leave
Two situations, two treatments:
- While employed: the employer decides when you take leave (with at least 30 days’ notice), and some employers require leave to be taken rather than carried over or cashed out. Check your contract and company policy.
- When employment ends: the unused balance is normally paid out in cash as part of your final settlement — unused days × daily wage. This is the line employers most often “forget”.
Practical hedge: keep your own record of leave taken versus leave earned. Employer counts and employee counts frequently disagree, and you cannot reconstruct the balance after you have signed the settlement.
2 worked examples
Example 1 — standard case
Last monthly wage SAR 6,000. 20 unused leave days at separation.
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 6,000 ÷ 30 | SAR 200.00 |
| Encashment | 20 × 200.00 | SAR 4,000.00 |
Example 2 — long-service worker, 30-day tier
Last monthly wage SAR 10,000. 30 unused leave days at separation (5+ consecutive years, so the 30-day tier applied).
| Step | Calculation | Result |
|---|---|---|
| Daily wage | 10,000 ÷ 30 | SAR 333.33 |
| Encashment | 30 × 333.33 | SAR 10,000.00 |
A full month of unused leave pays exactly one month’s wage — a useful sanity check.
Edge cases
- Partial years: leave earned for a partial year is normally prorated, but accrual and carry-over rules vary by employer — confirm with your contract or HRSD rather than assuming a method.
- Disputed balances: if HR says you took days you didn’t, written approvals and your own dated records win arguments that memory loses.
- Leave scheduled during notice: check whether your contract counts leave taken during the notice period against your balance — this affects both your payout and your last working day.
- EOSB is separate: leave encashment uses your daily wage; your EOSB gratuity (Articles 84–85) is a different calculation on a different base — both appear in the settlement.
Frequently asked questions
How many annual leave days do I get in Saudi Arabia?
Under Article 109 of the Saudi Labor Law (Royal Decree M/51), every worker is entitled to at least 21 days of paid annual leave per year. Once you complete five consecutive years with the same employer, the entitlement rises to 30 days per year.
How is unused annual leave paid out in Saudi Arabia?
Unused annual leave days are normally paid out when employment ends, at your wage rate for each unused day. The formula is: unused days × (monthly wage ÷ 30). This payout is one line of your final settlement.
Does the 30-day tier need 5 consecutive years with the same employer?
Yes. The higher 30-day entitlement under Article 109 applies after five consecutive years of service with the same employer — changing employers restarts the count for this purpose.
Can my employer force me to take leave instead of paying it out?
The employer sets leave dates (notifying you at least 30 days ahead) and leave wages are paid in advance, and some employers require leave to be taken rather than carried or cashed. Payout of unused balance normally happens at final settlement. If your employer refuses to recognize your balance, keep your own records and raise it through HRSD or Qiwa.
How does this calculator work?
Enter your last monthly wage and the number of unused annual leave days. The calculator divides the monthly wage by 30 to get your daily wage and multiplies by the unused days. The result is an estimate of your leave encashment at final settlement.
What counts toward my unused leave balance?
Leave days you earned minus leave days you actually took. Employers’ counts and employees’ counts frequently disagree, so keep your own record of every leave day taken — dates and approvals — and reconcile it before you sign any settlement.
Is leave encashment part of my final settlement?
Yes. Unused annual leave payout is one of the standard components of a Saudi final settlement, alongside EOSB gratuity, unpaid salary and any notice pay in lieu. It is one of the lines most often ‘forgotten’ in settlements, so check it yourself.
Related: final settlement calculator · EOSB calculator · overtime pay calculator · resignation & Article 79 Bis
AFFILIATE PLACEHOLDER: "Recommended services" section goes here once affiliate relationships exist. No affiliate links yet — do not invent any.