Annual Leave Calculation

حساب الإجازة السنوية

📖 Definition

Saudi Labor Law grants employees 21 days of paid annual leave, increasing to 30 days after 5 years of service. Unused leave must be compensated at the daily wage rate upon termination.

In everyday Saudi accounting work, annual leave calculation matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.

📖 التعريف بالعربية

يمنح نظام العمل السعودي الموظفين 21 يوم إجازة سنوية مدفوعة، تزداد إلى 30 يوماً بعد 5 سنوات خدمة. يجب تعويض الإجازات غير المستخدمة بمعدل الأجر اليومي عند انتهاء الخدمة.

💡 Example

Employee with SAR 9,000 salary and 6 years: 30 days leave, daily rate = 9,000/30 = SAR 300/day.

موظف براتب 9,000 ريال و6 سنوات خدمة: 30 يوم إجازة، المعدل اليومي = 9,000/30 = 300 ريال/يوم.

When this term matters

Invoices

Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.

Reports

Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.

Compliance

Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.

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