How should an employer manage leave for employees in Saudi Arabia? One of our Praxima clients recently reached out with a compliance query regarding how statutory leave entitlements are applied in practice under Saudi labour law, particularly where national holidays, religious observances and family-related leave intersect.
Saudi Arabia’s leave framework is comprehensive and highly prescriptive, with entitlements governed by the Labour Law, Royal Decrees and implementing regulations.
Employees in Saudi Arabia are entitled to paid leave on national and religious holidays.
Employees are entitled to full pay during:
If a public holiday coincides with an employee’s weekly rest day, the employee must be compensated with an alternative rest day. Where a public holiday falls during an employee’s annual leave, it may not be counted as part of their annual leave entitlement.
An exception applies when Saudi National Day overlaps with Eid al-Fitr or Eid al-Adha. In these cases, no additional compensation day is granted.
Reference: Labour Law, Article 24(4)
Saudi labour law provides a structured approach to sick leave entitlements within a single calendar year, whether leave is taken continuously or intermittently.
An employee is entitled to:
Sick leave must be supported by a medical report approved by the competent authority.
Importantly, sick leave pay is calculated using the employee’s actual wage at the time leave is taken, including:
This ensures that sick leave compensation reflects an employee’s true earnings rather than base salary alone.
If a public holiday coincides with an employee’s weekly rest day, the employee must be compensated with an alternative rest day. Where a public holiday falls during an employee’s annual leave, it may not be counted as part of their annual leave entitlement.Speak to a Specialist
Article 27 of the Labour Law introduces reduced working hours during Ramadan. For Muslim employees, working time must not exceed six hours per day, unless the nature of the role requires fewer hours.
Annual leave entitlements are distributed according to an employee’s length of service.
Employees are entitled to:
Employees may not waive their right to annual leave or receive cash in lieu of leave while still employed. Employees must also notify their employer of their intended leave at least 30 days in advance, unless otherwise agreed.
If an employee leaves employment without using their accrued annual leave, they are entitled to payment for unused leave, calculated proportionally based on the time worked during the year.
Reference: Labour Law, Article 109, Article 111
Saudi Arabia provides a generous maternity leave framework under Article 151 of the Labour Law.
Female employees are entitled to:
Where a child is ill or has special needs requiring constant care, the employee is entitled to:
Special bereavement provisions apply to female employees following the death of a spouse.
These provisions operate independently of maternity leave entitlements.
Fathers in Saudi Arabia are entitled to:
This entitlement applies regardless of the employee’s length of service.
Reference: Labour Law, Article 113
Employees are entitled to five days of fully paid compassionate leave in the event of:
Special provisions relating to women’s leave entitlements continue to apply where relevant.
With employer approval, employees may take unpaid leave for a duration agreed between both parties.
Where unpaid leave exceeds 20 days, the employment contract is deemed suspended for the duration of the leave, unless both employer and employee agree otherwise.
If this article raised questions or highlighted areas you’d like to understand better, let’s talk.Our team can walk through the details, implications, and practical considerations for your business.
