Annual leave entitlement in the UAE
Under Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations, private-sector employees earn paid annual leave as follows:
| Length of service | Annual leave |
|---|---|
| Less than 6 months | Not yet entitled (unless the contract allows) |
| 6 months to 1 year | 2 days for each month of service |
| After 1 year | 30 calendar days a year |
| Final part-year on leaving | Leave for the fraction of the last year worked |
Part-time employees earn leave in proportion to their working hours, as set out in their contract.
How leave salary is calculated
When you take leave
During annual leave you are entitled to your wage, which UAE lawyers commenting on Article 29 describe as the basic wage plus your regular allowances, not just basic salary. Paying only basic plus housing while cutting other regular allowances has been described as non-compliant. Leave pay is normally paid before the leave starts or on the usual payday, depending on policy.
Leave salary = (basic salary + allowances) ÷ 30 × leave days
When you leave the job with unused leave
If your employment ends and you have leave days left, you are paid for them. That payment is calculated on basic salary only, unless your contract offers better terms.
Unused leave payment = basic salary ÷ 30 × unused leave days
Worked examples
Taking 30 days of leave: Basic AED 6,000 and allowances AED 3,000. Daily rate = 9,000 ÷ 30 = AED 300. Leave salary = 300 × 30 = AED 9,000.
Leaving with 12 unused days: Basic AED 6,000. Daily rate = 6,000 ÷ 30 = AED 200. Payment = 200 × 12 = AED 2,400.
Leave earned after 2 years and 4 months: 30 + 30 + (4/12 × 30) = 70 days in total. If 30 have been used, the balance is 40 days.
Carrying leave forward
Employers and employees can agree to carry unused leave into the next year, within the limits set in the implementing regulations and company policy. Employers should not stop you from using leave earned for more than two years. Many companies cap carry-over, so check your HR policy, and plan leave rather than letting days pile up.
Working extra hours instead of taking time off? Our UAE overtime calculator shows what those hours should be worth at 125% or 150%.
If your leave salary is wrong
- Ask HR for the calculation in writing and compare it with your contract.
- Check your contract and offer letter for any better leave terms.
- Raise a complaint with MOHRE through its app, website or call centre if the issue is not fixed. See the Ministry of Human Resources and Emiratisation.
Frequently asked questions
How is leave salary calculated in the UAE?
For leave taken, divide your monthly wage including regular allowances by 30 and multiply by the leave days. For unused leave on leaving a job, use basic salary ÷ 30 × unused days.
How many leave days do I get in the UAE?
30 calendar days a year after one year of service, and 2 days per month between six months and one year.
Is leave salary paid on basic or gross salary?
While on leave, you are entitled to your wage including regular allowances. Unused leave paid out at the end of service is based on basic salary unless your contract is more generous.
Do I get paid for unused leave when I resign?
Yes. Unused earned leave is paid when employment ends, including the fraction for the final part-year.
Which law applies?
Private-sector employment is governed by Federal Decree-Law No. 33 of 2021 and its implementing regulations. Free zones and government jobs may have their own rules.