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Leave Pay Calculation Formula:
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Leave pay calculation determines the amount an employee should receive for their leave days based on their monthly salary. In Saudi Arabia, the standard calculation divides the monthly salary by 30 to get the daily rate, then multiplies by the number of leave days.
The calculator uses the standard KSA leave pay formula:
Where:
Explanation: This formula calculates the daily rate by dividing the monthly salary by 30, then multiplies by the number of leave days to determine the total leave pay amount.
Details: Accurate leave pay calculation ensures employees receive their entitled compensation and helps employers maintain compliance with Saudi labor laws and regulations.
Tips: Enter your monthly salary in SAR and the number of leave days. The calculator will automatically compute your leave pay amount based on the standard KSA calculation method.
Q1: Why divide by 30 instead of actual calendar days?
A: Saudi labor regulations typically use 30 days as the standard month for salary calculations, regardless of the actual number of days in a month.
Q2: Does this calculation apply to all types of leave?
A: This calculation is generally used for annual leave and other paid leave types. Specific leave types may have different calculation methods.
Q3: Are allowances included in the salary for this calculation?
A: Typically, the basic salary is used for leave pay calculations, but some allowances may be included depending on company policy and labor regulations.
Q4: What if an employee works part-time?
A: For part-time employees, the calculation should be based on their proportional salary relative to full-time employment.
Q5: How are fractions of days handled?
A: Most companies calculate leave pay to the nearest halal (permissible) fraction, typically rounding to two decimal places.