UAE Annual Leave Salary Calculator
UAE Annual Leave Salary Calculator
Your UAE annual leave balance under Federal Decree-Law No. 33 of 2021 and what it is worth: cash on the basic wage when you leave, or your full wage if you take the days as leave.
UAE leave salary
Basic AED 6,000, full wage AED 10,000 (examples), past the first year, 4 months into the leave year, 8 days carried forward, 5 days taken
Leave balance and its cash value
- built up
- 2.5 × months into the leave year after the first year; in the first year 2 × months once six are complete, else 0
- B
- the basic monthly wage, used for unused leave on leaving
- ÷ 30
- a day’s wage, from the Decree-Law’s 30-day month
Worked example
Basic AED 6,000, full wage AED 10,000 (examples), past the first year, 4 months into the leave year, 8 days carried forward, 5 days taken
Built up this year: 2.5 × 4 = 10 days
Unused: 8 + 10 − 5 = 13 days
Cash on leaving: 6,000 ÷ 30 × 13 = AED 2,600.00
Taken as leave instead, on the full wage: 10,000 ÷ 30 × 13 = AED 4,333.33
How annual leave and leave salary work in the UAE
Article 29 of Federal Decree-Law No. 33 of 2021 gives a private-sector employee 30 days’ paid annual leave for each year of service once the first year is complete, and two days a month for service of more than six months but under a year. When employment ends, the worker is also owed leave for the fraction of the last year, which this page counts at 30 ÷ 12 = 2.5 days a month.
Basic or full wage? It depends on how the leave is used. While you work, leave you take is paid at your wage with its allowances. Days still unused when employment ends are paid in cash on the basic wage only (Article 29, and Article 19 of the Implementing Regulation, Cabinet Resolution No. 1 of 2022). On the example, 13 unused days are worth AED 2,600.00 as cash on leaving but AED 4,333.33 if taken as leave first, which is why it can pay to use leave before your last day, where your employer agrees.
Carrying leave forward. The Implementing Regulation lets an employee carry forward up to half of a year’s leave, or agree with the employer to be paid for it in cash at the wage received when the leave fell due. The employer may not stop an employee taking leave for more than two years running. In the first year, eight months’ service gives 16 days, worth AED 3,200.00 on the example basic wage.
Conventions. A day’s wage is the monthly wage ÷ 30, from the Decree-Law’s 30-day month; some employers use a 365-day year, which changes the figure slightly. Enter whole months: leave builds up per completed month. Many contracts give more than the legal 30 days; enter the balance your employer reports. For end-of-service pay use the UAE gratuity calculator; for leave encashment in India, the leave encashment calculator. Choose AED in the currency menu for dirhams. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is leave salary calculated in the UAE?
Leave you take is paid at your full wage. Unused leave paid in cash when you leave is worked out on the basic wage: basic ÷ 30 × unused days.
How many days of annual leave do I get in the UAE?
30 days a year after the first year, and two days a month in the first year once you have served more than six months (Article 29). Leave for part of the last year counts too.
Can I encash unused leave while still working in the UAE?
Only by agreement with your employer, at the wage you received when the leave fell due. You may carry forward up to half a year’s leave instead.
Is unused leave paid on basic or gross salary when I leave?
On the basic wage. 13 days on a basic of AED 6,000 is AED 2,600.00.
Related calculators
References
- United Arab Emirates. Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationships, Article 29 (annual leave) and Article 67 (a month is 30 days). https://uaelegislation.gov.ae/en/legislations/1541
- United Arab Emirates. Cabinet Resolution No. 1 of 2022 on the Implementation of the Decree-Law, Article 19 (carrying forward and cash in lieu of annual leave).
- Gulf News and Khaleej Times legal columns on leave salary under Article 29 (full wage during leave; basic wage for unused leave on termination), 2022–2023.