Workdays equation for annual leave balance in the final settlement

This article explains the calculation method that Jisr uses to settle the unused annual leave balance (workdays) if the company policy allows it.

This is specific to companies that calculate annual leave days as workdays, not calendar days.

Employees are granted annual leave days based on this calculation, where off days and official holidays are not deducted. However, in the employee’s final settlement, the method of calculating the annual leave balance settlement in the Jisr system differs.

The system converts annual leave days from workdays to calendar days to enable the settlement of the employee’s leave balance.

For further clarification:

If an employee takes one month of annual leave in a year, the leave is calculated as 30 calendar days. However, if workdays are used, it is calculated as 21 workdays.

The final outcome, depending on the policy, is that the employee takes a full month off in the year, regardless of whether it is calculated based on 21 workdays or 30 calendar days.

If we consider that the employee's salary is 3000 SAR, the compensation for taking this month as leave would be 3000 SAR in both the calendar day and workday scenarios.

Therefore, in the employee's final settlement, the same rule applies: the employee's balance is converted from workdays to calendar days, and then the value of the balance in calendar days is determined for the settlement.

Example:

If an employee has a balance of 15 workdays, the balance is converted to calendar days according to the following formula:

(15 * 30) / 21 = 21.43 days

So the result is: 15 workdays = 21.43 calendar days.

The employee's leave balance settlement is calculated based on the following:

Employee's salary / 30 days * annual leave balance in calendar days

3000 / 30 * 21.43 = 2143 SAR