How annual leave pay is calculated in UAE
While on leave you receive your full wage. Unused leave paid out on termination is calculated on basic salary (Article 29(9)). Employees may carry forward or encash leave by agreement; the employer cannot force encashment of more than the balance exceeding the year's entitlement.
Worked example
AED 9,000 per month, 18-day balance: 9,000 ÷ 30 = 300 per day × 18 = AED 5,400.
Annual leave across the GCC
| Country | Entitlement | Pay basis |
|---|---|---|
| UAE | 30 calendar days per year after one year of service (2 days per month between 6 and 12 months) | Basic (encashment) |
| Qatar | 3 weeks (21 days) per year for under 5 years' service; 4 weeks (28 days) after 5 years | Basic (encashment) |
| Saudi Arabia | 21 days per year, rising to 30 days after 5 consecutive years | Full wage |
| Oman | 30 days per year after six months' service | Full wage |
| Bahrain | 30 days per year after one year (2.5 days per month) | Full wage |
| Kuwait | 30 working days per year after nine months' service | Full wage |
Frequently asked questions
How many days of annual leave am I entitled to in UAE?
30 calendar days per year after one year of service (2 days per month between 6 and 12 months). Legal basis: Federal Decree-Law 33/2021, Art. 29.
How is leave salary calculated in UAE?
Daily rate = monthly basic salary ÷ 30; leave pay = daily rate × leave days. Example: AED 9,000 and 18 days → AED 5,400.
Is leave salary based on basic or full salary in UAE?
Encashment of unused leave is calculated on basic salary. (While actually on leave you receive your normal full wage.)
Can I encash my annual leave instead of taking it?
Only by agreement with the employer and within the limits of the law; employers cannot force you to encash the statutory minimum. All accrued, untaken leave must be paid out when employment ends.
Do public holidays and weekends count as leave days?
Leave is counted in calendar days. Public holidays falling within leave are not deducted in most employers' policies; weekends are.
How is leave accrued for part of a year?
Pro-rata: entitlement × (months worked ÷ 12). After 6 months of service you can start taking leave; before that it accrues but may not be taken.
What happens to my leave balance when I resign?
It is paid out in your final settlement at the applicable daily rate, together with your gratuity and notice-period pay.