What is leave salary in the UAE?
"Leave salary" is the money you receive for the days you are on paid annual leave. In the UAE, private sector workers do not lose income when they go on their yearly vacation. The employer keeps paying you for every day of approved annual leave. Many companies pay this amount before you travel, together with or ahead of your normal salary. Others simply continue the monthly salary as usual through the payroll.
The term is also used for the cash value of leave you earned but never used. When your job ends, the employer must pay for these days. This is called "leave encashment" and appears in your final settlement. The two payments follow different rules, so the calculator shows them separately.
For most expat workers, annual leave is the yearly trip home. Knowing your days and pay helps you plan and avoid surprises when you resign.
How many leave days you get under UAE law
The UAE Labour Law sets a minimum. Your employment contract or company policy can give you more, but it cannot give you less. The minimum depends on how long you have worked for the same employer.
| Length of service | Minimum paid annual leave |
|---|---|
| Less than 6 months | No legal entitlement yet (employer may still allow leave) |
| 6 months to less than 1 year | 2 days for each month of service |
| 1 year or more | 30 days for each year of service |
| Final partial year when the job ends | Pro-rata share of 30 days for the months/days worked |
So someone who has worked eight months has earned 16 days. Someone who has finished one full year has earned 30 days. After that, every extra year adds another 30 days. When employment ends in the middle of a year, you also earn leave for that last part-year, in proportion to the time worked. The calculator above works this out automatically using the exact number of days.
Calendar days or working days?
The 30 days are generally understood as calendar days, so weekends inside your leave are counted. Some employers give 22 working days instead, which is about the same for a five-day week. Check your offer letter.
Do public holidays inside your leave count?
Yes, by default. The law says official holidays that fall during your annual leave are counted as part of the leave period. If your contract or company rules are more generous (for example, adding the holiday back to your balance), the better rule applies. This is a common question during Eid, when people plan their annual leave around the long weekend.
The legal basis: Article 29 and the Executive Regulations
Annual leave in the UAE private sector is governed by Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, which came into force on 2 February 2022 and replaced the old Federal Law No. 8 of 1980. The detailed rules are in its implementing rules, Cabinet Resolution No. 1 of 2022 (the Executive Regulations).
The key provisions are:
- Article 29(1) – the right to paid annual leave of at least 30 days for each year of service, 2 days per month for service between six months and one year, and leave for the fraction of the final year if the job ends before the leave is used.
- Article 29(2) – part-time workers get leave in proportion to the hours they actually work.
- Article 29(3) – the employer may allow leave during probation.
- Article 29(4) – leave should be used in the year it is earned; the employer sets the dates based on work needs and must give at least one month's notice.
- Article 29(5) and (8) – carrying leave forward needs employer approval, and the employer may not stop you from using accrued leave for more than two years.
- Article 29(6) – you are entitled to your wage for the leave period.
- Article 29(7) – official holidays during leave count as part of the leave unless your contract is better.
- Article 29(9) – when you leave work, you are paid for unused accrued days and for the part of the final year, calculated on the basic wage.
- Article 19 of Cabinet Resolution No. 1 of 2022 – up to half of the annual leave may be carried forward to the next year, or paid in cash by agreement; at the end of service, the balance is paid in cash according to basic salary.
These rules apply to private sector employers on the mainland and in most free zones. Workers in the DIFC and ADGM have their own employment laws, and domestic workers have a separate law. See the special cases section below.
Which salary is used: basic, housing or full wage?
This is the most confusing part of UAE leave salary, so it is worth reading slowly. There are two different payments and two different salary bases.
1. When you take your leave: full wage
Article 29 says you take annual leave "with full wage". The Decree-Law defines "wage" as the basic wage plus the cash allowances and in-kind benefits you receive under your contract. "Basic wage" is defined separately and excludes allowances. Reading these together, lawyers writing in the major UAE newspapers have explained that when you actually go on leave, you should keep receiving your normal monthly package: basic salary plus regular allowances such as housing and transport.
You may have heard that leave pay is "basic plus housing". That was the rule under Article 78 of the old 1980 law. Many contracts and HR systems still use it out of habit. Under the current law, the wording points to the full wage, but some employers still pay only basic plus housing. If your contract says something more favourable, that applies. If you are paid less than your full wage while on leave, ask HR which clause they rely on. The calculator lets you switch between both methods so you can see the difference.
2. When unused leave is paid out: basic salary only
When your employment ends and you still have leave days left, Article 29(9) and Article 19 of the Executive Regulations say the cash for those days is calculated on the basic salary. Housing and other allowances are not included, unless your contract promises more. This is why the encashment value in the calculator is usually lower than the leave salary for the same number of days.
Because basic salary drives encashment, gratuity and overtime, the split between basic and allowances in your package matters a lot. Our UAE Salary Calculator shows how each part of your salary affects these benefits.
How to calculate leave salary in the UAE: step by step
The law gives the entitlement and the salary base, but it does not spell out a daily-rate formula. The most widely used practice in the UAE is to treat a month as 30 days. Some employers instead use the annual salary divided by 365. The 30-day method is simpler and is what our calculator uses. The difference is small, but if your employer uses another method, your figure may differ slightly.
Step 1: Work out your leave entitlement
If 6 months ≤ service < 1 year: Leave earned = 2 × completed months
If service < 6 months: Leave earned = 0 (no legal right yet)
Step 2: Subtract leave already taken
Step 3: Leave salary for the days you take
Leave salary = Daily leave rate × Number of leave days taken
Step 4: Encashment of unused leave at the end of service
Leave encashment = Daily basic rate × Unused leave days
Quick check: 30 days of leave should equal one full month of your package.
Worked examples
Each example below uses the same method as the calculator, so you can type the numbers in and see the same result.
Example 1: Completed one year, taking 30 days
Ahmed joined on 1 January 2025. On 31 December 2025 he has completed exactly one year. His basic salary is AED 5,000, housing allowance AED 2,000 and transport allowance AED 500. He has not taken any leave yet and plans to take all 30 days.
- Leave earned: 30 days (one full year)
- Daily leave rate (full wage): (5,000 + 2,000 + 500) ÷ 30 = AED 250.00
- Leave salary for 30 days: 250 × 30 = AED 7,500.00
- If his employer uses basic + housing only: 7,000 ÷ 30 × 30 = AED 7,000.00
- If he resigned instead and was paid the 30 days in cash: 5,000 ÷ 30 × 30 = AED 5,000.00
Example 2: Eight months of service
Maria joined on 1 January 2026. On 31 August 2026 she has eight completed months. Her basic salary is AED 4,000 and housing AED 1,500. She has not taken leave.
- Service is more than six months but less than a year, so she earns 2 days per month.
- Leave earned: 2 × 8 = 16 days
- Daily leave rate: (4,000 + 1,500) ÷ 30 = AED 183.33
- If her job ended on that date, encashment: 4,000 ÷ 30 × 16 = AED 2,133.33
Example 3: End of service with part-year leave
Rajesh joined on 1 March 2023 and his last working day is 30 June 2026. That is three full years plus 122 days. His basic salary is AED 9,000, housing AED 3,500 and other allowances AED 1,000. Over the three years he took 70 days of leave.
- Leave for full years: 30 × 3 = 90 days
- Leave for the final part-year: 30 × 122 ÷ 365 = 10.03 days
- Total earned: 100.03 days
- Balance: 100.03 − 70 = 30.03 days
- Encashment on basic: 9,000 ÷ 30 × 30.03 = AED 9,008.22
This amount would appear in his final settlement next to his end of service gratuity. You can estimate the gratuity with our UAE Gratuity Calculator and the full package with the UAE Final Settlement Calculator.
Example 4: Less than six months
Joy joined on 1 May 2026 and wants leave on 15 September 2026. After four months she has no legal leave days yet. Her employer can still approve paid or unpaid leave. The calculator shows 0 days.
Carry forward and encashment rules
Leave is meant to be used in the year it is earned. Here is how unused leave is handled while you are still employed.
- Carrying forward: With employer approval and in line with company rules, you can move leave to the next year. Article 19 of the Executive Regulations allows up to half of the annual leave to be carried forward. For a 30-day entitlement that is 15 days.
- Cash instead of leave during employment: The same article allows you and your employer to agree on a cash allowance for leave you do not take. This is by agreement only; neither side can force it. The allowance is based on the salary you were receiving when the leave was earned.
- The two-year protection: Your employer cannot prevent you from using leave that has built up for more than two years. Old leave should not simply disappear.
- At the end of service: Any remaining legal balance must be paid in cash, based on basic salary, no matter how many days have accumulated.
| Situation | Salary base used |
|---|---|
| Taking annual leave | Full wage (basic + allowances) per Article 29; some contracts use basic + housing |
| Cash for leave not taken, during employment (by agreement) | Salary at the time the leave was due, as agreed |
| Unused leave paid at end of service | Basic salary only (unless contract is better) |
| Gratuity | Basic salary only |
Special cases
Resignation vs termination
Your accrued leave belongs to you whether you resign or are terminated. Article 29(9) does not make leave pay depend on the reason for leaving, because it is pay for time already worked. Using leave during the notice period needs agreement. Our UAE Notice Period Calculator helps you plan your last working day.
Probation
The employer may let you take leave during probation, but it is not required. If your probation ends with the job ending, you are still paid for any leave balance you earned. Since the legal right starts only after six months, a short probation often ends with zero days due.
Unpaid leave and absence
The law says unpaid leave does not count as service for end-of-service purposes, and many employers also exclude it when calculating annual leave. If you took long unpaid leave, subtract that time from your service dates before using the calculator, or check with HR how they treat it.
Part-time and flexible work
Under the new law, part-time, temporary and flexible work models are recognised. Part-time workers earn leave in proportion to their actual hours. For example, someone working half the normal hours would roughly earn half the paid hours of leave. The exact method should be in the contract.
Free zones, DIFC and ADGM
Most free zone employers follow the UAE Labour Law. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are different. They have their own employment laws, with their own annual leave rules (for example, DIFC counts leave in working days). If you work there, check the DIFC or ADGM employment law and your contract instead of this calculator.
Domestic workers
Housemaids, drivers, nannies and other domestic workers are covered by Federal Decree-Law No. 9 of 2022 on domestic workers, not by Decree-Law 33. They also get paid annual leave, but under that law's own rules. Check with MOHRE or your Tadbeer centre.
Common mistakes when calculating UAE leave salary
- Using total salary for encashment. Unused leave at the end of service is paid on basic salary, not the full package. Many people expect more than they will receive.
- Using basic salary for leave taken. The opposite mistake. When you actually go on leave, the law points to your full wage, not basic alone.
- Forgetting the final part-year. If you leave in month four of a new service year, you have still earned about 10 days for that part-year.
- Assuming leave expires. The law protects leave accrued over two years from being blocked, and the balance must be paid at the end of service.
- Ignoring the contract. If your contract gives 35 days, use 35 days, not the legal minimum.
- Mixing up air tickets and leave salary. An annual air ticket is a contractual benefit and is not part of leave salary unless your contract says so.
What to do if your leave salary is not paid
Start with HR. Ask for a written leave statement showing days earned, taken and remaining, and the salary used. If it differs from the calculator, email HR citing Article 29 and your contract.
If the employer still refuses, you can file a labour complaint with the Ministry of Human Resources and Emiratisation (MOHRE):
- Through the MOHRE app (search "MOHRE" on Google Play or the App Store) using the employee complaint service.
- Through the MOHRE website, mohre.gov.ae.
- Through MOHRE's 600 590000 number (call centre and WhatsApp).
- In person at a Tawafuq or other MOHRE-approved service centre.
MOHRE first tries to settle the dispute amicably. Following the 2024 amendment by Federal Decree-Law No. 9 of 2024, MOHRE can issue a binding decision on claims up to AED 50,000, and the time limit for bringing a labour claim is two years from the end of the employment relationship. Labour cases are exempt from court fees for claims up to AED 100,000. Rules can change, so confirm current timelines with MOHRE.
Practical tips
- Keep your own record of each leave, with dates and approval emails.
- Ask HR for your leave balance before planning a long trip.
- Before resigning, check whether it makes more sense to use your leave or have it paid. Using it gives you full wage; encashment gives you basic only.
- Read your contract for extra days, air tickets and whether leave is in calendar or working days.
- If you also work overtime, see our UAE Overtime Calculator to check those payments too.
Frequently asked questions
How many days of annual leave do I get in the UAE?
If you have completed one year of service, you are entitled to at least 30 calendar days of paid annual leave for each year. If you have worked more than six months but less than one year, you get 2 days for each month of service. Your contract can give you more, but not less.
Is leave salary paid on basic salary only?
No. When you actually take your annual leave, Article 29 of the UAE Labour Law says you are paid your full wage for the leave period, and the law defines wage as basic salary plus cash allowances and in-kind benefits. Basic salary only is used when unused leave is paid out in cash at the end of service.
Can I get annual leave before completing six months?
The law only creates a leave entitlement after six months of service. Your employer may still allow you to take leave earlier, including during probation, but this is at the employer's discretion or under your contract.
How is unused leave paid when I leave my job?
You are paid for every day of accrued unused leave, plus a pro-rata amount for the part of your final year. The payment is based on your basic salary. A common method is basic salary divided by 30, multiplied by the number of unused days.
Can I carry forward my annual leave to next year?
Yes, but only with your employer's approval and according to company rules. The Executive Regulations allow carrying forward up to half of your annual leave to the next year, or agreeing with the employer to take cash for it instead.
Do public holidays count as annual leave days?
Under the law, official public holidays that fall during your annual leave are counted as part of the leave, unless your contract or company rules give you a better arrangement. Check your contract or staff handbook.
Is annual leave counted in calendar days or working days?
The 30 days are generally treated as calendar days, so weekends inside the leave period are counted. Some employers give 22 working days instead, which is roughly similar. Your contract should state which method applies.
Do part-time workers get annual leave in the UAE?
Yes. Part-time workers get annual leave in proportion to the actual hours they work for the employer, as set out in their contract and the Executive Regulations.
Can my employer refuse to let me take leave?
Your employer can choose the leave dates based on work needs and must tell you at least one month in advance. However, the employer cannot stop you from using accrued leave for more than two years.
What can I do if my leave salary is not paid?
First raise it in writing with HR. If it is still unpaid, you can file a complaint with the Ministry of Human Resources and Emiratisation (MOHRE) through its app, website or call centre. Workers in DIFC or ADGM should use their free zone's own employment authority.
Disclaimer
This UAE leave salary calculator and guide give an estimate only. They are not legal advice. Employers may use different daily-rate methods, and your contract or company rules may be more generous than the law. For a binding answer, check with the Ministry of Human Resources and Emiratisation or a qualified UAE lawyer.
Sources / references
Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (Articles 1, 28, 29, 54, 55), as amended by Federal Decree-Law No. 9 of 2024; Cabinet Resolution No. 1 of 2022 on the Executive Regulations (Article 19); UAE Government Portal – Annual leave; Ministry of Human Resources and Emiratisation.