Human Resources clarifies on how to calculate Annual entitlements in Saudi Arabia


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Saudi Airlines has also stated that all visit visa holders should return from the same airport where they arrived.

In other words, a visitor visa holder who arrived at Riyadh airport will be unable to return to Jeddah airport. However, if he arrived at Jeddah airport, he can return from the same location. Entry ban on visit visa holders to 4 Saudi airports

According to the Saudi Labor Law, the yearly leave wage is computed based on the actual wage, including all allowances, as defined in Article 2 of the Saudi Labor Law.

Basic Wage definition in Article 2 of Saudi Labor Law :

In addition to periodic increments, everything supplied to the worker for his job under the terms of a written or unwritten work contract, regardless of the type of compensation or payment method. Youngest Married couple in KSA gets their first Child

Actual Wage definition in Article 2 of Saudi Labor Law :

The basic wage plus all other due increments are determined for the worker based on the amount of effort he puts in at work, the dangers he faces while performing his job, or those determined for the worker based on the work contract or work organization legislation.

  • A commission or proportion of sales or profits provided in exchange for what the worker markets, produces, collects, or realizes as a result of increased or expanded production.
  • Allowance that a worker is entitled to as a result of his or her exerted effort or the hazards he or she faces while executing his or her job.
  • Increments that may be awarded to satisfy family expenses or in accordance with the standard of living.
  • If such a grant or reward is mentioned in the work contract or the firm’s work organization regulation, or if it is usually granted to the extent that the workers consider it part of the wage rather than a donation, it is considered a grant to reward.
  • In rem privileges: What the employer agrees to provide for the worker’s work by stating in the work contract or the work organization regulation, and which is estimated to be no more than two months’ basic wage per year, unless the work contract or the work organization regulation specifies otherwise.

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