Saturday, May 31, 2014

Vacation Allowance Policy in Saudi Arabia

  1. Every employee is entitled to Vacation Allowance as per the annual leaves he is entitled to according to Saudi Labor Law.
  2. Vacation Allowance will be paid to the employees a day before he is leaving for vacation.
  3. For the calculation of Vacation Allowance, only basic salary and housing allowance will be taken into account. Transportation allowance and any other benefit will not be taken into account for the purpose of calculating the vacation allowance.
  4. Leave Encashment is not allowed in any circumstances.
  5. Date of Joining of the employee will be taken into account for the purpose of calculation of vacation allowance.

Standard Procedures
  1. Employee will have to submit a leave form (Form A) to the HR department if he wants to avail annual leaves. If this leave form is approved by department head and HR department, he will be eligible for the vacation allowance.
  2. Finance department will calculate the vacation allowance of the employee and pay him in cash or transfer to his bank account at least one day before his departure.


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