Unused Leave Pay in Saudi Arabia: Complete Guide for OFWs (Article 111 Explained)
Learn how unused leave pay works in Saudi Arabia under Article 111. Step-by-step guide for OFWs, sample computation, and legal basis.
Unused leave pay Saudi Arabia Article 111
Introduction
Kabayan, isa sa pinaka common na tanong ng OFWs sa Saudi ay: “Mababayaran ba ang leave ko kung hindi ko nagamit?” Good news—yes, may karapatan ka dito under Saudi Labor Law.
In this guide, we’ll break down Article 111, explain how unused leave pay works, how to compute it, and what to do if your employer refuses to pay.
What is Unused Leave Pay in Saudi Arabia?
Unused leave pay refers to the salary equivalent of annual leave days that a worker did not use before leaving the job.
Under Saudi Labor Law, employees are entitled to annual leave (usually 21–30 days per year). If these leaves are not used, they are converted into cash upon exit.
Legal Basis: Article 111 Saudi Labor Law
⚖️According to Saudi Labor Law Article 111:
“A worker shall be entitled to a wage for the accrued days of the leave if he leaves the work without using such leave… He is also entitled to a leave pay for the parts of the year in proportion to the part he spent at work.”
Key Interpretation:
- ✔ You must be paid for unused leave days
- ✔ Applies when leaving the job (resignation, termination, contract end)
- ✔ Includes partial year (pro-rated leave pay)
Who is Eligible for Leave Pay?
You are entitled to unused leave pay if:
- You did not use all your annual leave
- You are resigning, terminated, or contract ended
- You worked for at least part of the year
Applies to:
How to Compute Unused Leave Pay
Basic Formula:
Daily Salary × Unused Leave Days = Leave Pay
Step-by-Step Example:
Monthly Salary: 3,000 SAR
Daily Rate: 3,000 ÷ 30 = 100 SAR
Unused Leave: 20 days
Leave Pay = 100 × 20 = 2,000 SAR
Pro-Rated Leave (Partial Year)
If you worked only part of the year:
Example:
- Annual leave entitlement: 21 days
- Months worked: 6 months
Computation:
21 ÷ 12 × 6 = 10.5 days leave
Multiply by daily wage to get pay.
Difference Between Leave Pay and EOSB
Many OFWs confuse these two. They are separate entitlements:
| Benefit | Description |
| ----------------------------- | -------------------------------------- |
| Leave Pay | Payment for unused annual leave |
| EOSB (End of Service Benefit) | Compensation based on years of service |
👉 You can receive both if qualified.
When Should Leave Pay Be Given?
Based on Saudi Labor Law Article 88:
- Employer must pay all dues (including leave pay) within 1 week after contract ends
- If employee resigns: within 2 weeks
Common Problems OFWs Face
❌ 1. “Wala kang leave pay kasi hindi ka nag-leave”
➡ Wrong. If unused, it must be converted to cash
❌ 2. Employer refuses to pay
➡ This is a labor violation
❌ 3. Leave not recorded in system
➡ Check your contract in Qiwa or documents
❌ 4. “Included na sa salary”
➡ Not valid unless clearly stated and lawful
What to Do If Employer Refuses to Pay
Step-by-step:
- ✔ Check your contract via Qiwa
- ✔ Gather proof (salary slips, attendance, messages)
- ✔ File complaint via Ministry of Human Resources and Social Development
- ✔ Use labor dispute services (friendly settlement or court)
Special Case: Domestic Workers
For domestic workers under Musaned:
- Leave entitlement exists but may vary
- Some employers provide cash instead of leave
- Still, unused leave may be claimed depending on contract terms
Important Tips for OFWs
- ✔ Always track your leave balance
- ✔ Request leave formally (message/email)
- ✔ Save proof of unused leave
- ✔ Check contract terms carefully
- ✔ Do not rely on verbal agreements
Frequently Asked Questions (FAQs)
1. Am I entitled to unused leave pay if I resign?
Yes. If you have unused annual leave, you are entitled to receive payment for those days, even if you resign.
2. What if I did not complete one full year of work?
You are still entitled to pro-rated leave pay based on the number of months you worked.
3. Are allowances included in the leave pay calculation?
In most cases, leave pay is calculated based on the basic salary only, unless your contract states that allowances are included.
4. Can an employer legally refuse to pay unused leave?
No. Under Saudi Labor Law Article 111, payment for unused leave is a legal obligation.
5. When should I receive my leave pay?
According to Saudi Labor Law Article 88, it should be paid within:
- 1 week after contract termination
- 2 weeks if the employee resigns
6. Can I claim unused leave from previous years?
Yes. As long as the leave was not used or already compensated, it should be included in your final settlement.
7. Is unused leave pay separate from End of Service Benefits (EOSB)?
Yes. Unused leave pay is separate from EOSB, and you may receive both if you are eligible.
8. What should I do if my employer does not pay my leave?
You can:
- Check your contract via Qiwa
- Gather supporting documents
- File a complaint through Ministry of Human Resources and Social Development
Real Scenario (OFW Question of the Day)
“Sir, hindi ko nagamit leave ko for 2 years. Pwede ko pa ba makuha?”
✔ Yes. All accrued unused leave must be paid, even from previous years, unless already used or settled.
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Conclusion
Kabayan, huwag mong sayangin ang karapatan mo—ang unused leave pay ay hindi pabor, kundi obligasyon ng employer sa Saudi Labor Law.
Kung may hindi ka pa nagamit na leave, siguraduhin mong ma-claim ito bago ka umalis o mag exit sa trabaho.
Want To Know More Kabayan?!
👉 May tanong ka pa tungkol sa leave pay, EOSB, o resignation?
Visit pinoytalks.com or join the discussion in PinoyTalksKSA — tulungan tayo dito kabayan.
Disclaimer
This content is for general informational purposes only and does not constitute legal advice. Labor cases may vary depending on contract terms and circumstances. For accurate guidance, verify through official Saudi platforms such as Qiwa, MHRSD, or authorized legal channels.
