The rules
| Service | Entitlement |
|---|---|
| Under 6 months | None yet |
| 6–12 months | 2 days per month |
| 1 year or more | 30 days per year |
- Leave salary, paid in advance of the leave = (basic + allowances paid during leave) ÷ 30 × leave days. Enter only the housing allowance if your contract follows the common basic + housing practice, or all fixed allowances if you pay the full wage.
- Encashment of unused leave on exit = basic salary ÷ 30 × unused days.
Worked example
AED 8,000 basic + AED 3,000 housing, 12 months’ service, 10 days taken
- Leave pay per day: 11,000 ÷ 30 = AED 366.67
- Leave salary for 30 days: AED 11,000
- Encashment of the 20 unused days: 8,000 ÷ 30 × 20 = AED 5,333.33
See also the gratuity calculator for the rest of a final settlement.
Frequently asked questions
How many days of annual leave do employees get in the UAE?
30 calendar days a year after one year of service, and 2 days for each month of service between six months and one year (Federal Decree-Law 33/2021, Art. 29).
Is leave salary basic or gross?
Practice differs. Federal Decree-Law 33/2021 says leave is paid at the employee's wage, which some legal commentators read as the full wage. Many employers still use basic plus housing, the rule under the old 1980 law. Encashment of unused leave on exit is calculated on the basic wage only.
Can I carry forward annual leave in the UAE?
Yes, by agreement, but employers may not prevent an employee from using accrued leave for more than two years. Unused leave is paid out when employment ends.