UAE Leave Salary Calculator
Updated August 2026 · Based on UAE Labour Law (Federal Decree-Law No. 33 of 2021)
Work out paid annual-leave salary or unused-leave encashment under UAE Labour Law.
Quick answer
UAE leave salary is the pay you receive while on annual leave, or the cash value of unused leave days when you leave a job. Employees earn 2 days of paid leave per month between six months and one year of service, and 30 calendar days per year after one year. The daily wage is the applicable monthly salary divided by 30, and leave salary is that daily wage multiplied by the number of days.
Want the reasoning rather than the number? Read the complete UAE annual leave salary guide — entitlement, accrual, which salary applies to leave taken versus encashed, and carry-forward.
| Length of service | Annual-leave entitlement |
|---|---|
| Less than 6 months | No statutory entitlement |
| 6 months to 1 year | 2 days for each month of service |
| After 1 year | 30 calendar days per year, equivalent to 2.5 days per month |
| Daily wage basis | Applicable monthly salary ÷ 30 |
How is UAE leave salary calculated?
Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), the calculation itself is short. The judgement is in which salary figure goes into it, and how many days have actually accrued.
- Daily wage = applicable monthly salary ÷ 30.
- Leave salary = daily wage × number of leave days.
- Full-time employees are entitled to 30 calendar days a year after one year of service, and 2 days for each month of service between six and twelve months.
On the daily wage. The official guidance sets the entitlement in days — 30 calendar days a year, or 2 days for each month of service between six and twelve months — and states that payment for leave accrued on termination is calculated on basic salary. The guidance pages reviewed do not prescribe the divisor for turning a monthly salary into a daily one. This calculator uses salary ÷ 30, matching the 30-day basis the entitlement is expressed in.
Worked example 1 — a full year of leave taken
Salary of AED 9,000 and 30 days of leave
Daily wage = 9,000 ÷ 30 = AED 300
Leave salary = 300 × 30 = AED 9,000
A full 30-day entitlement is worth one month of the applicable salary, which is a useful sanity check on any figure you are given.
Worked example 2 — accrual for part of a year
Salary of AED 12,000, leaving after 7 completed months of the leave year
Accrued days = 7 × 2.5 = 17.5 days
Daily wage = 12,000 ÷ 30 = AED 400
Value of accrued leave = 17.5 × 400 = AED 7,000
If 5 days had already been taken, the balance to encash would be 12.5 days, or AED 5,000.
Worked example 3 — service between six and twelve months
Salary of AED 6,000, leaving after 9 months of service
Accrued days = 9 months × 2 = 18 days
Daily wage = 6,000 ÷ 30 = AED 200
Value of accrued leave = 18 × 200 = AED 3,600
The UAE Government states that where service exceeds six months but is less than one year, the employee is entitled to 2 days of leave for each month of service. Six months is the eligibility threshold, not a deduction — the first six months still count.
How annual leave accrues
Leave is earned across the year rather than granted in a lump at the start of it. After the first year, 30 days a year is equivalent to 2.5 days per month for estimation. Between six and twelve months of service the entitlement is 2 days for each month of service. On termination, entitlement for the final year is calculated proportionately to the period worked, which is what makes the encashment figure at exit meaningful.
Public holidays inside a leave period
The UAE Government states that public holidays, or agreed leave days, falling within an annual-leave period are considered part of the annual leave, unless the employment contract or company policy provides more favourable terms. A public holiday taken independently of annual leave is a separate paid entitlement.
Leave encashment when employment ends
Unused annual leave is paid out when employment ends, however it ends, including resignation. This is the figure usually called leave encashment, and it sits alongside gratuity and any other outstanding dues in the final settlement.
The mechanics are the same as above: accrued days, less days already taken, multiplied by the daily wage. Where an employer has required leave to be taken during the notice period, those days come out of the balance before the encashment is worked out.
Which salary applies depends on which of the two situations you are in. Article 29 of Federal Decree-Law No. 33 of 2021 is generally read as drawing a distinction: leave taken during employment is paid on the full monthly salary including the allowances normally received, while leave accrued but not taken when employment ends is paid on basic salary.
The UAE Government confirms the second of these directly — payment for leave accrued on termination is "calculated on the basis of his/her basic salary". Use the basic figure for an exit calculation, and your normal full monthly salary for leave you are actually taking.
The calculator applies whichever monthly figure you enter, so it follows your contract. Where the amount is material, check the contract wording and take advice.
Public holidays inside a leave period
The UAE Government states that public holidays, or agreed leave days, falling within an annual-leave period are considered part of the annual leave, unless the employment contract or company policy provides more favourable terms. A public holiday taken independently of annual leave is a separate paid entitlement.
Leave encashment when employment ends
Unused annual leave is paid out when employment ends, however it ends, including resignation. This is the figure usually called leave encashment, and it sits alongside gratuity and any other outstanding dues in the final settlement.
The mechanics are the same as above: accrued days, less days already taken, multiplied by the daily wage. Where an employer has required leave to be taken during the notice period, those days come out of the balance before the encashment is worked out.
Which salary applies depends on which of the two situations you are in. For leave accrued but not taken when employment ends, the UAE Government states that payment is calculated on the basis of the basic salary. Use the basic figure for an exit calculation.
For leave taken during employment the position is less clearly stated, and practice varies between employers on whether housing allowance is included. The calculator applies whichever monthly figure you enter, so it follows your contract rather than assuming a rule. Where the amount is material, check the contract wording and take advice.
Carrying leave forward
An employee may carry unused annual leave, or part of it, into the following year with the employer's consent, or take cash compensation for it instead. Working the other way, an employer cannot prevent an employee from taking accrued leave for more than two consecutive years unless the employee has chosen to carry it over or to be paid for it.
What this does not create is an unlimited right to bank leave year after year, so an employee sitting on a large accumulated balance should confirm how much of it the employer recognises before relying on it.
Estimate for guidance only — this is not legal advice. Entitlements vary by contract and by work model, and the law is amended from time to time. Confirm your position with MOHRE or a qualified adviser before relying on a figure.
Primary source: Federal Decree-Law No. 33 of 2021 and Cabinet Resolution No. 1 of 2022, summarised on u.ae — Annual leave. Reviewed August 2026.
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