How it works
Paid annual leave is a non-waivable statutory right under every Arab labor code. When an employee takes scheduled vacation or leaves a company with an unused vacation balance, HR and payroll departments must calculate two figures accurately: the exact pro-rated leave balance accrued over the months worked, and the cash encashment value of those remaining days based on the employee’s actual daily wage.
Statutory Annual Leave Entitlements Across Arab Labor Laws (2026)
The table below compares the minimum paid annual vacation days before and after the seniority threshold in all eight supported countries:
| Country & Labor Statute | Initial Annual Entitlement | Seniority Upgrade | Monthly Accrual Rate |
|---|---|---|---|
| Saudi Arabia (Labor Law Art. 109) | 21 days / year (Years 1–4) | 30 days / year (from Year 5 onward) | 1.75 days/mo → 2.50 days/mo |
| Egypt (Labor Law No. 12 of 2003, Art. 47) | 21 days / year | 30 days / year (after 10 yrs service or age 50) | 1.75 days/mo → 2.50 days/mo |
| UAE (Federal Decree-Law 33/2021, Art. 29) | 30 calendar days / year (2 days/mo in Year 1) | 30 days / year from Year 1 completion | 2.50 days/month |
| Kuwait (Private Sector Law No. 6 of 2010) | 30 paid days / year | 30 days / year throughout tenure | 2.50 days/month |
| Qatar (Labor Law No. 14 of 2004, Art. 79) | 21 days / year (Years 1–4) | 28 days / year (from Year 5 onward) | 1.75 days/mo → 2.33 days/mo |
| Bahrain (Labor Law No. 36 of 2012, Art. 58) | 30 days / year | 30 days / year throughout tenure | 2.50 days/month |
| Oman (Royal Decree 53/2023, Art. 78) | 30 days / year | 30 days / year throughout tenure | 2.50 days/month |
| Jordan (Labor Law No. 8 of 1996, Art. 61) | 14 days / year (Years 1–4) | 21 days / year (from Year 5 onward) | 1.17 days/mo → 1.75 days/mo |
Formulas for Leave Accrual and Cash Encashment
- Accrued Leave Days:
Accrued Days = (Annual Entitlement ÷ 12) × Months Worked in Period. - Net Remaining Leave Balance:
Net Days = Accrued Days − Days Already Taken. - Daily Wage Rate:
Daily Wage = Monthly Actual Wage ÷ 30. - Unused Leave Cash Payout:
Cash Encashment = Daily Wage × Net Remaining Days.
An employee in Riyadh with 6 years of total seniority earns a monthly salary of 9,000 SAR. Over the past 12 months, the employee took 10 days of vacation and wants to know their remaining balance and cash value:
- Annual Statutory Entitlement (≥ 5 years in KSA): 30 days/year (2.5 days per month).
- Total Accrued Over 12 Months: 30.00 days.
- Net Unused Balance: 30 − 10 = 20.00 days.
- Daily Wage: 9,000 ÷ 30 = 300.00 SAR/day.
- Cash Value of Unused Leave Balance: 20 × 300 = 6,000.00 SAR.
Combine your unused vacation payout with your full severance award in the /en/end-of-service-calculator, verify your gross-to-net salary structure in the /en/salary-calculator, count calendar days between your vacation start and return dates with /en/days-between-dates, and check extra hours pay with the /en/overtime-calculator.