Saudi Gazette report

RIYADH — The Ministry of Human Resources and Social Development (MHRSD) has clarified how the entitled annual leave for employees is calculated in accordance with the Labor Law in which it operates within Saudi Arabia.

The ministry’s clarification came due to the fact that several of the beneficiaries have inquired about whether their entitled annual leave is calculated on their actual salary only, or based on their salary including housing and transportation value.

The MHRSD replied that according to the definition of wages in Article 2 of the Labor Law, the annual leave wage for the employee is calculated on the actual salary, including all allowances.