Saudi Leave Encashment 2026: The 21/30-Day Rule and the End-of-Service-Only Rule
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Saudi Arabia treats annual leave differently from many countries: you generally cannot cash it out while still employed.
The entitlement
You earn 21 days of annual leave per year with under 5 years of service, rising to 30 days per year once you complete 5 consecutive years with the same employer.
Why encashment is end-of-service-only
Article 109 specifically prohibits waiving leave or swapping it for cash while you are still working. It is Article 111 — a separate provision — that makes encashment of your full accrued, unused balance mandatory once your employment ends.
The wage basis
Encashment uses your actual wage — basic wage plus regular cash allowances, the same broad definition used for end-of-service benefits — divided by 30 for a daily rate.
Worked example
SAR 8,000 actual monthly wage, 25 unused leave days at end of service: (8,000 ÷ 30) × 25 = SAR 6,667.
Frequently asked questions
How much annual leave do Saudi employees earn?
21 days per year with under 5 years of service, rising to 30 days per year once you complete 5 consecutive years with the same employer.
Can I cash out my leave while still working in Saudi Arabia?
No — Article 109 prohibits waiving or exchanging leave for money during employment. It can only be encashed when your employment ends (Article 111).
What salary is used for Saudi leave encashment?
Your actual wage — basic wage plus regular cash allowances — the same broad definition used for end-of-service benefits.
Can I postpone my leave instead?
Yes, by mutual agreement with your employer, for up to 3 years.