Days to be encashed upon departure
Entitled Days
30
per year
Daily Wage
AEDÂ 500
Encashment Value
AEDÂ 5,000
10 unused days
What is the annual leave entitlement in UAE?
After completing one year of continuous service, employees are entitled to 30 calendar days of paid annual leave per year. For employees with 6 months to 1 year of service, the entitlement is 2 days per month worked. Leave during probation is typically at the employer's discretion.
Can I encash unused leave in UAE?
Yes, unused annual leave must be encashed upon termination or resignation. The encashment value is calculated based on the basic salary daily rate (monthly basic salary / 30). Some employers also allow leave encashment during employment, though this varies by company policy.
What about public holidays?
The UAE has approximately 10-12 public holidays per year (including Eid al-Fitr, Eid al-Adha, National Day, etc.). If a public holiday falls during annual leave, it is not counted as a leave day. Employees who work on public holidays are entitled to an extra day off or overtime pay.
Note: Some employers offer more generous leave policies than the legal minimum. Check your employment contract for your specific entitlement.
Your paid holiday rights under UAE Labour Law and how leave encashment works
How many days of annual leave do I get in the UAE?
Once you have worked for the same employer for a full year, you are entitled to 30 calendar days of paid annual leave each year. If you have been in the job for between 6 and 12 months, you get 2 days of leave for each month you have worked. During the first 6 months (probation), leave is usually at your employer's discretion.
How is the daily leave pay calculated?
Your daily leave pay is based on your basic salary divided by 30 days. For example, if your basic monthly salary is AED 10,000, your daily rate is AED 333. Allowances such as housing or transport are not included unless your contract says otherwise.
Can I carry forward unused leave to the next year?
Yes, you can carry forward unused annual leave, but your employer may set limits. The UAE Labour Law allows you to agree with your employer on carrying over leave. However, it is best practice to use your leave within each year for your wellbeing.
What happens to my unused leave when I resign or am terminated?
When your employment ends, your employer must pay you for any unused annual leave days. This is called leave encashment. For instance, if you have 15 unused days and your daily rate is AED 500, you would receive AED 7,500 as part of your final settlement.
Do public holidays count as part of annual leave?
No. If a public holiday falls during your annual leave period, it is not counted as a leave day. The UAE has around 10 to 12 official public holidays each year, including Eid al-Fitr, Eid al-Adha, and UAE National Day. You get those days off on top of your annual leave.
Can my employer refuse my leave request?
Your employer can decide when you take your leave based on business needs, but they cannot refuse to grant it altogether. The law requires that you take at least 10 consecutive days in one block each year. Your employer must give you at least one month's notice of your leave dates.
Are part-time workers entitled to annual leave in the UAE?
Yes. Under the 2022 UAE Labour Law, part-time employees also receive annual leave, but the entitlement is worked out on a pro-rata basis according to their actual working hours compared to a full-time role. The details should be set out in the employment contract.
FTA-Aligned: Based on the 2022 UAE Federal Decree-Law No. 33 on Labour Relations. For personal advice, speak to a qualified HR or legal consultant.
Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms