Hi, Share how your company calculates your annual leave salary

Paying leave salary based only on basic is not a good policy, however a lot of companies follow that.  The best practice is to pay based on all pay elements (basic + housing + transportation +other allowances) and this is what we follow. Some companies argue as to why to pay for transportation or other allowances since employee is not showing up for work, and pay only basic + housing.   I see this as a benefit from the company and as per contract when you say "a month paid leave" should encompass all the elements of monthly / fixed pay elements.

True that. I haven't heard of any company who pays just the basic salary for the vacation days.

In response to the Ministry of Labor directive, majority of companies have changed there policies from one month calendar vacation to 22-days work-days off.

in a year 21+official holidays would be there..right?

As TLL said it is 22 working days , public holidays should not be counted, they are to be paid in full or to be treated as not part of the annual leave.

if leave salary is paid for 21/22 days (working days) One month salary to be taken as for 26 days (if Friday is only considered as official holiday) and not 30 Days ..is that correct?

If Gross salary for an Employee is SR.2000 /month

his leave salary in year (365 Days) is  2000/30*21 = 1400   or 2000/26*21 = 1615

Please show the calculation if same employee works for 450 Days if he had worked less than 5 year in the company

If gross salary is 2000 and if he has worked for 450 days the leave salary calculation should be:

for 365 days ( 1 yr) = based on 22 working days or 30 calendar days which comes to 2.5 days leave per month = 2000 or full gross salary
for 85 remaining days - eligible for 7 days leave (85/30*2.5 = 7) @ 2000 *12/365 *7 =460

Leave salary total should be 2460 for 450 days . The 5 yr cap has got nothing to do with leave salary, that will be for the end of service calculation.

Hi, HR Guru...

Please go through below article from Saudi Labour Law , how it is to be understood...Actually leave salary to be paid only for 21 days (not 30 days) know in a year..?

Please clarify.......

Chapter Four
Leaves

Article (109):
(1) A worker shall be entitled to a prepaid annual leave of not less than twenty one days, to be increased to a period of not less than thirty days if the worker spends five consecutive years in the service of the employer.

amkmongam wrote:

Hi, HR Guru...

Please go through below article from Saudi Labour Law , how it is to be understood...Actually leave salary to be paid only for 21 days (not 30 days) know in a year..?

Please clarify.......

Chapter Four
Leaves

Article (109):
(1) A worker shall be entitled to a prepaid annual leave of not less than twenty one days, to be increased to a period of not less than thirty days if the worker spends five consecutive years in the service of the employer.

The article needs to be understood under the operational policy of the company, the article itself is talking about annual leave as 21 calendar days minimum and not less than this . But as part of the internal policy of the company they can say 21 working days , or 30 calendar days or just 21 days.  Most companies in KSA have a min of 30 days leave either for 1 yr of service or for 2 yrs. Any service period lasting more than 5 yrs should have a min or not less than 30 days as per law. if a company under its policy says less than 21 days annual leave then they are in violation of the law. hope this is clear.

Thanks......

or 365 days ( 1 yr) = based on 22 working days or 30 calendar days which comes to 2.5 days leave per month ( could you please explain this, bcz i didn't understand)

Hi,
My company is calculating leave accrual as per below formula, please advise if this is correct.

Annual leave: 22 working days
Monthly package, all in : 5000 ex
Leave accrual : (5000*12)/365*22

Although I believe it should be 5000/22. As we must not miss out on weekends.

Appreciate any references/feedback.

Thanks