Income Improvement Leave Request Form: Template, Rules, GOSI Impact

Picture a government employee who lands a six month consulting offer that pays double their current salary, but they don’t want to lose their primary job. Do they resign? Decline the opportunity? Secretly hold both? Every option carries a real loss. The fourth choice, and the most important, is what most guides ignore: income improvement leave.

This leave is not a marketing perk or a workaround. It is a formal mechanism that government bodies and private sector companies use to give an employee a defined window to work elsewhere without forfeiting their employment status. The problem is that most employees submit a weakly worded request that gets rejected, or a personal sounding one that gets misread. In this guide we break down everything you need: what income improvement leave actually is, where the regulations sit, how it differs from unpaid leave, how to write a request that will not be rejected, your rights and duties during the leave, and the impact on your salary, end of service benefits, and GOSI contributions. At the end, a ready to edit template you can use immediately.

What is income improvement leave?

Income improvement leave is a long term leave granted to an employee with the employer’s approval. During the leave, salary and allowances from the primary employer are paused, while the employee is permitted to take on other work, a job, consulting, or a personal project, for a defined period, with the explicit goal of improving their income. The key point is that working outside the primary employer is not just allowed; it is the very reason the leave is granted.

This type of leave is most common in the government sector, where some entities list it in their internal HR regulations as a tool to motivate employees to gain private sector experience without losing their employment status. In the private sector, it exists under other names like “professional leave,” “self development leave,” or “unpaid leave for professional purposes,” and depends entirely on what the two parties agree to in the contract or a special addendum.

The critical distinction: income improvement is not a temporary resignation nor a secondment. The employee remains on the books administratively, but exits the payroll for the duration of the leave. This fine distinction is what protects the employee from losing seniority, and protects the employer from the complications of rehiring.

The regulatory framework in Saudi Arabia

In Saudi Arabia, there is no explicit article in the Saudi Labor Law that names “income improvement leave” by that title. What exists is a general legal framework built on three components:

• Article 116 of the Saudi Labor Law: governs unpaid leave based on mutual agreement between the two parties, and stipulates that the employment contract is suspended rather than terminated. This article is the general umbrella under which all long term unpaid leave types sit.
• HR regulations in the government sector: every government entity issues an HR policy approved by the Ministry of Human Resources and Social Development (MHRSD), listing the available leave types. Many entities have explicitly added “income improvement leave” or its equivalents (such as spouse accompaniment leave for private sector workers, or temporary suspension leave). See the Saudi Labor Law as published by the Bureau of Experts at the Council of Ministers for general context.
• Individual agreement in the private sector: in the absence of a specific clause, the employee and the employer can sign a contract addendum that specifies the leave duration, return terms, and rights of both parties. Without a written agreement, the practice is not binding on the employer.

The practical takeaway: if you work in the government, start by checking your entity’s HR policy. If you are in the private sector, review your contract or open a written conversation with management before submitting any formal request.

The gap between the government and private sectors

The gap between the two sectors is significant in practice. Government entities have written policies, ready forms, and review committees for requests; the process is transparent. The private sector depends on company culture: some companies are flexible, others reject the idea outright, fearing they will lose the employee. A clear accounting platform for business owners helps HR teams see the financial impact before they respond, especially when comparing pay scales across the government and private sectors.

And the issue is not only about approval, but how entitlements are calculated. The government sector handles salary suspension mechanically through its HR system, while the private sector may need a manual adjustment in the monthly payroll, plus a notification to the GOSI office.

Income improvement leave vs. unpaid leave: why the distinction matters

This is the most misunderstood question. On the surface, the two look identical: salary paused, service suspended, return expected. But they differ in intent and effect:

• Intent: unpaid leave handles a private circumstance (illness, travel, family care). Income improvement leave handles a work opportunity, and a legitimate one in most cases.
• Working during the leave: with unpaid leave, many policies prohibit working for another party or require special permission. With income improvement leave, working is the reason itself and does not require a second approval.
• Documentation: income improvement requires proof of an actual opportunity (a contract, a letter, a commercial registration). Unpaid leave does not require that, and a reasonable personal reason is enough.
• Impact on the career path: many government policies allow part of the income improvement leave duration to count as service, especially when the opportunity is in the same field. Unpaid leave is rarely counted.

In practice, picking the right category determines how the HR system responds to your request and how your entitlements are calculated upon return. Do not file an “unpaid leave” request while intending to work in an external opportunity. File the request under its correct name and attach the proofs.

How to write an income improvement leave request that will not be rejected on form

Formal language is not a luxury; it is a protection mechanism for both parties. A formal request creates a written record to refer back to when there is a dispute, and makes it easier for the direct manager to decide quickly. The ready template shortens this path, but understanding its components matters more than copying it.

1. The mandatory elements in every request

• Header: employer name, department, direct manager’s name, date.
• Standard opening: for example, “I hereby submit this request for income improvement leave in accordance with the approved HR policy at the entity.”
• Personal details: full name, employee ID, job title, department, phone number, email.
• Precise duration: start date, end date, total number of days or months. Avoid vague phrasing like “as needed.”
• Reason for the request: one clear sentence, for example, “Working at company X as Y for Z duration to improve income and develop professional experience.”
• Attachments: a numbered list of supporting documents.
• Formal undertaking: no conflict with the nature of your current work, returning on the scheduled date, and notifying the entity if the opportunity ends early.
• Signature and date.

2. Common mistakes that get the request rejected

The most recurring mistakes, all avoidable, are:

• Emotional phrasing: “I kindly request your honorable mercy in considering…”. The request is not a plea; it is the exercise of a legal right.
• Missing proofs: mentioning the opportunity without a written document delays the decision while it is verified.
• Overlap with your current job: requesting leave to work for a direct competitor of the entity will be rejected in most cases.
• Filing at a sensitive time: peak season, fiscal year end, or the start of a large project. Pick a sensible moment.
• Missing the signature or the date. It sounds silly, but it happens.

3. A standardized text ready to edit

Here is the standardized template text. Copy it to a Word file or Google Docs, replace the values in brackets with your data, and sign:

Kingdom of Saudi Arabia. Employer: [Entity Name]
Department: [Department Name]
Date: [Date]
Subject: Income Improvement Leave Request

Greetings,

I hereby submit this request for income improvement leave for a duration of [number of months / days], starting on [start date] and ending on [end date], for the purpose of working at [new entity name] as [job title] during this period.

I undertake the following:
1. The opportunity does not conflict with the nature of my current work.
2. I will return to my workplace on the scheduled date.
3. I will notify my employer of any change before the leave ends.

Attached:
1. A copy of the national ID.
2. A formal letter from the new opportunity.
3. The signed employment contract (if any).

Thank you for your kind cooperation,

Name: [Full Name]
Employee ID: [ID]
Signature: [Manual Signature]

This wording lives in the downloadable template at the top of the page in a format ready to edit via Google Docs, with formal formatting that matches the standards used by Saudi entities.

The legal conditions for receiving income improvement leave

Conditions differ from entity to entity, but a common baseline applies across nearly every policy:

A. Conditions related to the employee

• Years of service: most entities require at least one or two years before applying.
• No active sanctions: an active warning or an open investigation halts the request until it is resolved.
• Performance rating: some policies require a “good” performance rating or higher for the previous year.
• No outstanding financial obligations to the entity: unpaid advances, or training programs funded by the entity that come with a commitment period.

B. Conditions related to the opportunity

• The opportunity must be legitimate and documented by a contract or a formal letter.
• It must not conflict with the nature of the entity’s work (an employee in a regulatory body should not take income improvement leave at a regulated entity).
• It must not conflict with security or confidentiality obligations if the role sits at a sensitive site.
• It must have a defined duration, not be open ended. An open ended leave is not income improvement; it is a de facto resignation.

C. Conditions related to the duration

The most common maximum is one year, renewable once. Some entities allow up to two consecutive years, provided the employee passes a performance review upon returning from the first leave. Going beyond two years opens regulatory questions about whether the employee is actually planning to return, or using the leave as a cover for a deferred resignation.

Employee rights and duties during the leave

The leave does not mean a full disconnect. The employee remains tied to the employer through a limited legal relationship that revolves around the following rights and duties:

Rights

• Retention of employment status: title, grade, and administrative seniority are all preserved. You should not be stripped of your job simply because you are on leave.
• Return to your job or an equivalent one: government regulations guarantee a return to the same role, or to an equivalent role in grade and title if the original role was filled out of necessity.
• Retention of certain deferred allowances: such as the annual housing allowance or the leave grant, depending on the policy.
• Obtaining an employment status certificate: many new entities require it to confirm the employee has not resigned.
• Protection from arbitrary termination: the employer cannot terminate you during the leave except for specific legal reasons (falsifying the leave application, failing to return on time, breaching the leave conditions).

Duties

• No conflict: do not work for a direct competitor of the entity, and do not use confidential information acquired from your original job.
• Immediate notification of any material change: the opportunity ending early, a change in your responsibilities at the new role, or a change in your address.
• Returning on time: a delay without a valid excuse may be treated as unauthorized absence and may escalate to contract termination.
• Settling financial obligations: advances, deferred deductions, or internal loans do not pause because of the leave.
• Maintaining confidentiality: confidentiality obligations remain in force throughout the leave as if you were on the job.

The financial impact: salary, allowances, GOSI, and end of service benefits

This is where many requests lose their clarity. The employee files thinking only the salary pauses, but the reality runs deeper.

Base salary and allowances

All cash components of the salary pause: the base, housing allowance, transportation allowance, role allowance, scarcity allowance. The pause begins on day one of the approved leave. Any amounts due for days before the leave begins are paid out in the final payroll cycle before the leave. To understand how salary components are actually affected, see our guide on GOSI deductions in Saudi Arabia, which breaks down the contributory wage structure.

Social insurance (GOSI)

This is a sensitive point. The General Organization for Social Insurance (GOSI) contribution pauses at the primary employer the moment the salary pauses, because the contribution is calculated as a percentage of the wage. The standard mandatory pension rate is 9.75% of the wage paid by the employee, matched by the employer, plus additional components for occupational hazards and a few other branches.

The practical options available to the employee during the leave:

• If the new opportunity is at an employer registered with GOSI, the contribution automatically transfers to the new employer based on the new salary.
• If the opportunity is freelance work or with an external party that does not register with GOSI, the employee can voluntarily enroll in GOSI under the “self employed” program to preserve continuity. Many employees overlook this point and lose years of pension accrual.
• If no GOSI contribution is made during the leave, the leave period does not count toward the pension, and the employee may need to purchase the period later under specific conditions.

End of service benefits

End of service benefit (EOSB) calculation in the private sector (per Article 84 of the Saudi Labor Law) is based on the last actual wage. The salary pause during the leave does not erase the benefit, but it freezes its accrual, so the leave period is not added to service duration for benefit purposes in many policies. In practice, an employee who takes 6 months of income improvement leave within 5 total years of service will have their benefit calculated on 4.5 years of actual service in most cases. For a deeper look at the exact formula, see our guide on end of service benefits in Saudi Arabia.

Tax and Zakat

Salary from the new opportunity is subject to tax rules if the employee is a non Saudi who crosses certain thresholds, and is not subject to income tax for Saudi nationals. Income from freelance work is included in the Zakat and tax return of the registered activity in the Fatoora e invoicing system (ZATCA).

A practical example: numbers in SAR

Suppose Ahmed is a government employee with a total monthly salary of SAR 15,000 (10,000 base + 3,000 housing + 2,000 other allowances), 7 years of actual service, who received a 12 month income improvement leave to work at a consulting firm at SAR 22,000.

Over 12 months, Ahmed gains a financial improvement of SAR 84,000 extra compared to his previous setup, but he loses:

• One year of end of service benefit accrual (estimated at roughly SAR 7,500 on a half month per year basis for the first five years and a full month thereafter).
• Continuity of GOSI contributions if he does not transfer to a registered employer or enroll voluntarily, which may cost him much more at retirement.

The realistic conclusion: net gain 84,000 minus 7,500 = SAR 76,500, provided Ahmed maintains GOSI continuity throughout. This calculation changes the decision for many employees once they see it on paper.

When your request gets rejected, and how to respond

A rejection is not the end of the road. Policies usually require the rejection decision to be reasoned, that is, justified in writing. The recurring reasons:

• Operational necessity: the entity is in peak season or running a large project that cannot absorb your absence.
• Failure to meet formal conditions: insufficient service duration, a low performance rating, or an active sanction.
• Conflict of the opportunity: with the nature of your work, or with confidentiality or non compete terms.
• Annual leave quota exceeded: some entities allocate a limited share of long term leaves per year.

If you receive an unreasoned rejection, or one for a reason you believe is incorrect, you have structured options:

1. File a written grievance with senior management directly, within the deadline set by the policy (typically 15 to 30 days).
2. Escalate to the Employee Affairs Committee at the entity if one exists.
3. In the government sector, escalate to the Board of Grievances (Diwan al Mazalim) if administrative options are exhausted.
4. In the private sector, escalate to the competent labor office if the rejection contradicts an explicit clause in your contract or in the law.

Try Qoyod free for 14 days. No credit card required.

How Qoyod helps you manage leave and payroll records

The administrative side of income improvement leave goes beyond writing the request. HR at the entity needs to update at least 5 files for each leave: the main employee record, the payroll register, the GOSI system, the attendance system, and the entitlements system. A delay in updating any of them creates accounting gaps that cost HR hours to reconcile later.

This is where the value of using an integrated accounting system shows up. It links these records in a single interface. HR teams in small and mid sized companies can:

• Pause the salary automatically from the leave start date, without manual edits each payroll cycle.
• Keep the full employee record without deletion, so all data is restored when the leave ends, without re entry.
• Document formal correspondence, the approval decision, the new entity’s letter, the employee’s undertakings, all attached in a single employee file.
• Track GOSI automatically: alert HR when the salary pauses to adjust contribution data at GOSI.
• Set a leave end reminder: 14 days and 30 days before the return date to reactivate the salary and prepare attendance.
• Report the impact of leave on monthly payroll budget within financial performance reports.

For anyone running a small or mid sized company in Saudi Arabia, this integration saves weekly hours and cuts down on costly manual errors, especially when handling employee absence cases or job title changes that require precise documentation. And if payroll and accounting are too complex for an internal team, explore Qoyod managed services, which handle bookkeeping and VAT on behalf of the business.

Frequently asked questions

Can I file an income improvement leave request while on probation?

No. Most policies require completing the probation period (90 days in the private sector under Article 53 of the Saudi Labor Law) before filing a long term leave request. During probation, if you have a better opportunity, the realistic option is a direct move, not a leave.

What happens if the new entity offers a permanent contract during the leave?

In that case, you need to submit a resignation to your primary employer before the leave ends, with enough advance notice as required by the policy (often 30 to 60 days). If you wait until the leave ends, you will have missed a legal notice period, which may cost you part of your end of service benefit.

Does the leave period count toward the contract duration for end of service benefit purposes?

In the private sector, the default answer is no. Under Article 84, the benefit is calculated on actual service, and unpaid leave (which is what income improvement leave maps to) is not treated as actual service in most legal opinions. In the government sector, some policies allow part of the period to count, especially if the opportunity is in the same field.

Can I take income improvement leave more than once?

Yes, provided there is a time gap between the two leaves per the policy (usually two years from return before filing a new request), and provided your performance is reviewed after returning from the first leave. Entities notice repeated requests and may reject the second one if they see the employee using it as a routine rather than an exceptional circumstance.

What do I do if the opportunity ends early?

Inform your employer immediately by formal letter explaining the reason, and request an early return. Most policies allow ending the leave early with a simple notice, and reactivating the salary from the actual return date. Do not delay reporting; a delay may be interpreted as an unauthorized continuation of the leave without work.

Can I combine the primary salary and the new salary?

No. That is exactly what income improvement leave prevents. The salary from the primary employer pauses on day one of the leave and only resumes upon actual return. Any attempt to combine both is a violation and may require returning the amounts received in error, plus disciplinary termination.

Am I entitled to the annual leave allowance during income improvement leave?

No. Annual leave allowances are paid only to an employee who actively draws a salary. During unpaid leave, including income improvement, all allowances pause. Annual leave days accrued before the leave remain preserved and are paid out upon return or at end of service.

Practical conclusion

Income improvement leave is a powerful legal tool, but it requires a clear understanding of its limits and effects. A successful request is not just a signed paper; it is an integrated process that begins with understanding your entity’s HR policy, runs through preparing proofs of the opportunity, and ends with documenting the financial impact in payroll and GOSI records.

Use the template attached at the top of the page as a starting point, edit the data carefully, and review your entity’s policy before submitting. Most importantly: do not forget to arrange your GOSI status during the leave; that is the real difference between a deliberate income improvement and a decision that leaves you without insurance continuity later.