All of us know that every employee is entitled to get paid annual leave for a minimum period ranging from 21 to 30 days based upon the time period of his service with the employer. We have covered this topic in detail earlier. All the employers in Saudi Arabia agree to the fact that the annual leave should be paid in advance. However, few employers take advantage of the ignorance of the expatriates and other workers and do not pay them properly during the annual leave period. Most of the employers do not pay the transportation allowance to the employees going on vacation. One of the readers of this blog raised this question a few days ago, Am I entitled to get Transportation Allowance during annual leave? We have tried to answer it with references to the Saudi Labor Law. Recommended: Rules related to Annual Leave under Saudi Labor Law[irp]
As per Article 109 (1) of Saudi Labor Law, every employee is entitled to get prepaid annual leave. So, it is established that every employee needs to be paid for his annual leave, but how much should he be paid? Saudi Labor Law does not specify any particular wages to be paid or not to be paid during the annual leave.
Article 2 of Saudi Labor Law defines workman or worker as “Any natural person who works in favor of the employer and under his management or supervision for a wage, though not directly.” It is established from this definition that a worker is only working for someone “for a wage”.
It can be easily implied that every employee is entitled to get his “Wage” during the period of his annual leave as per Article 109 (1) of Saudi Labor Law. But a new question arises, what is wage?
Article 2 of Saudi Labor Law defines “Basic Wage” as “All amounts paid to the workman in consideration of his work under an employment contract, written or not written, irrespective of the type of pay or method of work performance, plus the periodic allowances.”
Article 2 of Saudi Labor Law defines “Actual Wage” as “The basic wage plus all other accrued increases….” We can see that the basic wage is part of the actual wage.
Article 2 of Saudi Labor Law defines “Wage” as “Actual Wage”. It is very simple to conclude here that the word “wage” in Saudi Labor Law covers all the benefits mentioned in the definition of “Basic Wage”.[irp]
Basic Wage covers all the periodic allowances which include housing allowance, telephone allowance, food allowance and any other allowance paid with salary to the employee as well as Transportation Allowance.
Hence it can be concluded here that each and every employee working in Saudi Arabia is entitled to get transportation allowance during his annual leave.