In Saudi Arabia, employees are entitled to paid annual leave under the Labour Law. The minimum entitlement is 21 calendar days per year for the first five years of service, increasing to 30 calendar days after five years. The law applies to all employees in the private sector.

Statutory entitlement

21 calendar days of annual leave for the first five years of service. 30 calendar days after five years of service.

Eligibility

All employees in the private sector are entitled to annual leave. Leave is pro-rated for employees with less than one year of service.

Employer obligations

  • Grant annual leave as per the statutory minimum (21–30 days based on service).
  • Pay the employee's full wage during annual leave.
  • Pro-rate annual leave for employees with less than one year of service.
  • Pay for unused annual leave on termination of employment.
  • Maintain records of annual leave taken by each employee.

Employee rights

  • Right to 21–30 days of annual leave based on service.
  • Right to be paid at the full wage during annual leave.
  • Right to paid leave payout on termination.

Common pitfalls

  • Not increasing leave after five years — the entitlement increases from 21 to 30 days.
  • Not paying for unused leave on termination — this is a statutory requirement.

How annual leave accrues

After one year of service, the employee is entitled to 21 calendar days of paid annual leave. After five years, this increases to 30 calendar days.

Annual leave pay

Annual leave pay is based on the employee's full wage, including all allowances and supplements.

Frequently asked questions

Can annual leave be carried forward?

Unused annual leave can be carried forward by mutual agreement between the employer and employee.

Are Hajj and Umrah leave separate from annual leave?

Yes. Hajj leave (10–15 days) is a separate entitlement for Muslim employees who have not performed Hajj.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.