Calculating Vacation Balance in the Saudi Private Sector + Practical Tips

In the competitive work environment in المملكة العربية السعودية, is considered Managing the annual leave balance crucial for both parties — the employee and the employer — to ensure regulatory compliance, achieve a healthy work-life balance, and reduce labor disputes.

But what if I told you there is a simple tool that helps you automate accounting and save 90% of your time؟
قارئ الفواتير (Invoices Reader) is the perfect solution for such routine tasks:
✔️ Extracts data from invoices (PDF/images) automatically
✔️ Saves it to Excel or accounting systems like Odoo
✔️ Supports the requirements of the Zakat, Tax and Customs Authority (ZATCA)
🆓 Try it for free today!

What is the annual leave balance?

Annual leave balance It is the total number of days the employee is entitled to during their employment period, which must be paid in full as determined by نظام العمل السعودي.

Basic legal provisions

📌 Article 109 – Annual Leave

• The employee is entitled to receive 21 paid days annually.
• If they complete 5 consecutive years with the same employer, the balance increases to 30 days annually.
• The employee must enjoy the leave in the year it is due and it cannot be substituted for money during service.
• The employer has the right to determine the dates of the leave according to the work requirements, provided the employee is notified 30 days in advance.

Types of Leave in the Saudi Labor System

📌 1. Annual Leave

• Minimum 21 days annually.
• Becomes 30 days after 5 years with the same employer.
• Fully paid.

📌 2. Official Holidays

Includes official holidays and occasions approved every year:

• Eid al-Fitr
• Eid al-Adha
• Saudi National Day
  If it overlaps with a weekend, the employee is compensated according to the regulations.

📌 3. Special Leaves

Includes cases such as:

• Employee marriage
• Childbirth
• Death of a first-degree relative
  With paid days according to the regulation.

📌 4. Sick Leave

The employee is entitled to fully paid sick leave according to the duration of the leave and the medical reports approved in the system.

How to practically calculate the leave balance

🧮 Calculation Rule

• A new employee gets 21 days every year.
• After 5 years, the balance becomes 30 days for every year of service.

📊 Practical examples

1. Employee who served two years:
   Balance = 21 × 2 = 42 days.
2. Employee who served 8 years:
   First 5 years: 21 × 5 = 105 days
   The following three years: 30 × 3 = 90 يومًا
   Total = 195 days.

Financial compensation for unused leave

In the event of leaving work without using the full leave balance, the employee is entitled Financial compensation For every day not utilized.
Compensation is calculated based on:
الأجر اليومي = الأجر الشهري ÷ 30.
Then multiplied by the number of unused days.

Practical example:
Employee salary: 6000 Riyals
Has 10 unused days
→ Daily wage = 6000 ÷ 30 = 200 Riyals
→ Compensation = 200 × 10 = 2000 Riyals

Employer obligations

✔️ Recording and tracking the leave balance for each employee.
✔️ Organizing employee leave and notifying them sufficiently in advance of the date.
✔️ Paying the leave wage or compensation upon termination of service.

Accounting automation = saving 90% of your time

In light of these accounting and organizational requirements, it becomes Automation Tools A necessity, not a luxury — especially if you manage a team or an accounting office.
قارئ الفواتير (Invoices Reader) It offers you:

🔹 Extracting invoice data directly from PDF or images
🔹 Preparing them for reports
🔹 Saving them in Excel or exporting them to systems such as Odoo
🔹 Compliance with requirements ZATCA Without manual effort

💡 Save your team long working hours and reduce human errors using the invoice reader.
📲 Try it now for free!

Conclusion — Why is this important?

Understanding leave balance and managing it correctly is not just compliance with the system, but reflects a fair contract between the employee and the employer, and directly affects employee satisfaction and the quality of the work environment.

And with the right tools such as قارئ الفواتير (Invoices Reader), you can take your accounting activity to a higher level of efficiency and accuracy.