KSA Labour Law amendments series: Part 2 - leave entitlements

As part of the Kingdom of Saudi Arabia’s (KSA) ongoing labour reforms, the 2025 Amendments* have introduced significant enhancements to employee rights. These changes aim to strengthen employer-employee relationships, clarify previously ambiguous provisions, and align Saudi labour practices more closely with international standards. A key focus of these reforms is leave entitlements, which have been revised and, in some cases, expanded to offer greater flexibility and improved employee welfare. In this article, we highlight and explain the most notable changes to the various types of leave employees are entitled to.

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Maternity leave 

One of the most notable and widely welcomed amendments is the extension of maternity leave from 10 weeks to 12 weeks with full pay. The new provisions also introduce greater flexibility in how the leave can be taken:

• A minimum of six weeks must be taken immediately after childbirth.
• The remaining six weeks can be used at the employee’s discretion, with up to four weeks allocated before the expected due date.
• Additionally, the amendments allow for an extended unpaid leave period in cases of delayed childbirth.

Paternity leave 

A significant change in paternity leave is the introduction of a mandatory timeframe for its use. Under the 2025 Amendments:

• Paternity leave must be taken within seven days following the child’s birth.
• Prior to the amendment, the law did not specify when the leave should be utilised, leading to uncertainty.

Bereavement leave 

The 2025 Amendments introduce a new bereavement leave provision, granting:

• Three days of paid leave upon the death of a sibling.

This change builds upon existing bereavement leave entitlements, recognising the need for support during times of loss.

Compensatory leave

The 2025 Amendments introduce compensatory leave as a new option for employees who work overtime. Employers now have the discretion to either provide monetary compensation or grant compensatory leave in lieu of payment. The implementing regulations set out the following key provisions:

• Compensatory leave must be granted at a minimum rate of 1.5 hours for every overtime hour worked.
• Employers must provide the compensatory leave within 60 days of the overtime being worked, unless agreed otherwise.
• Employees can accumulate a maximum of 30 days of compensatory leave per year.
• If an employee leaves their job before using their compensatory leave, they are entitled to monetary compensation for the unused balance.

Annual leave

The core provisions on annual leave remain unchanged. While the KSA Labour Law refers to leave in calendar days, the Ministry of Human Resources and Social Development (MHRSD) has traditionally interpreted annual leave in working days.

The 2025 Amendments introduce a new standard employment contract template on the Qiwa platform, which defines a "day" as a calendar day. However, for annual leave, the template specifically refers to working days, providing further clarity on how leave entitlements should be calculated in practice.

This is the second article in our series on the key amendments shaping employment in Saudi Arabia, the first was KSA Labour Law amendments series: Part 1 - resignations. If you require any assistance, or clarifications on the KSA Labour Law please contact Sara Khoja or Faisal Alassiri.

^{* Royal Decree M/44 amending the KSA Labour Law and Ministerial Decision No. 115921/1446 issuing the new Implementing Regulations to the KSA Labour Law.}

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