When do I become eligible for annual leave in UAE?

You become eligible for annual leave after completing 6 months (180 days) of continuous service with your employer. From the 6th month onwards, you start accruing 2 days of leave per month until you complete 1 year, after which you're entitled to the full 30 days per year.

How does annual leave accrue in UAE?

Annual leave accrues proportionally throughout the year. After completing 6 months of service, you accrue 2 days per month. Once you complete 1 year, your entitlement becomes 30 days annually, which means you accrue approximately 2.5 days per month throughout your continued employment.

Can I carry over unused annual leave to the next year?

Yes, with employer consent, unused annual leave can be carried over to the following year. However, UAE Labour Law mandates that employees cannot be prevented from using their accrued leave for more than two consecutive years. Always check your company's specific leave policy for carryover limits.

What happens to my unused leave when I resign?

When you resign or are terminated, all accrued but unused annual leave days must be paid out in cash as part of your final settlement. The encashment is calculated based on your basic salary: (Basic Salary ÷ 30) × Unused Leave Days.

Are public holidays counted as annual leave days?

No, official UAE public holidays are not counted as annual leave days. If a public holiday falls during your annual leave period, that day is not deducted from your leave balance. You're entitled to both the public holiday and your full annual leave quota.

Can my employer refuse my annual leave request?

Employers can schedule annual leave based on business needs, but they cannot deny employees their legal entitlement to annual leave indefinitely. UAE Labour Law states that employees cannot be prevented from using their accrued leave for more than two consecutive years.

How is annual leave calculated for part-time employees?

Part-time employees receive annual leave entitlement prorated based on their actual working hours compared to full-time staff. For example, an employee working 50% of full-time hours would receive 15 days of annual leave instead of 30 days after completing one year of service.

Can I take annual leave during my probation period?

During probation, you cannot take annual leave as you need to complete 6 months of service to be eligible. However, leave days are still accruing from your start date. Once you pass 6 months (even if still on probation), you become eligible to use your accrued leave.

What is the difference between annual leave and sick leave?

Annual leave is paid time off that employees can use for vacation, personal matters, or rest. Sick leave is specifically for illness or medical treatment and requires medical documentation. Annual leave is 30 days after 1 year, while sick leave entitlement is up to 90 days per year with varying pay rates.

Can I split my annual leave into multiple periods?

Yes, you can split your annual leave into multiple periods with your employer's approval. UAE Labour Law allows flexibility in how you take your leave, though many companies require at least one continuous period of a certain length (often 5-10 consecutive days) for work-life balance purposes.

Do weekends count as annual leave days?

Weekends (Friday-Saturday or Saturday-Sunday depending on your work schedule) are not counted as annual leave days if you take leave during the work week. Annual leave only counts working days. However, if you request leave that spans weekends, the weekends may or may not be counted depending on company policy.

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Quick Reference 2026

UAE Annual Leave Entitlement Quick Facts

30 Days

Annual leave entitlement after 1 year of service

6 Months

Minimum service required for leave eligibility

2 Days

Leave accrual per month (6-12 months)

2.5 Days

Leave accrual per month (after 1 year)

2 Years

Maximum carryover period allowed by law

100%

Unused leave paid on resignation/termination

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UAE Annual Leave Rules 2026

Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), all employees in the private sector are entitled to paid annual leave. The entitlement is 30 days per year after completing one year of continuous service, with pro-rata accrual for shorter periods.

Key Annual Leave Rules:

Eligibility: Minimum 6 months of continuous service
Full Entitlement: 30 days per year after completing 1 year
Pro-rata (6-12 months): 2 days per month worked
Leave Type: Fully paid leave based on basic salary + allowances
Public Holidays: Not counted as annual leave days

Who is Entitled to Annual Leave?

All employees working in the UAE private sector under an employment contract are entitled to annual leave. This includes full-time, part-time, and fixed-term contract employees. The leave entitlement begins accruing from the first day of employment, but employees can only take leave after completing 6 months of service.

Employer Obligations

Employers must allow employees to take their annual leave and cannot deny entitled leave for more than two consecutive years. The employer determines the leave schedule based on business requirements but must ensure employees receive their full entitlement. Leave salary must be paid before the leave period starts.

How Annual Leave Accrual Works in UAE

Accrual Formula:

6-12 months: 2 days × (months worked - 5)
After 1 year: 30 days + (2.5 × additional months)

Examples:

8 months service = 2 × (8 - 5) = 6 days accrued
1 year service = 30 days accrued
18 months service = 30 + (2.5 × 6) = 45 days accrued

Practical Example

An employee who started on January 1, 2025 and calculates their leave on July 15, 2026:

Service period: 1 year, 6 months, 15 days
Completed years: 1 (30 days)
Additional months: 6 (6 × 2.5 = 15 days)

Total Accrued: 45 days

Annual Leave Entitlement by Service Period

Service Period	Days Accrued	Accrual Rate
0-6 months	0 days	Not eligible
6 months	2 days	2 days/month
9 months	8 days	2 days/month
12 months (1 year)	30 days	Full entitlement
18 months	45 days	2.5 days/month
24 months (2 years)	60 days	2.5 days/month

Annual Leave Carryover Rules in UAE

UAE Labour Law allows employees to carry over unused annual leave to the following year, subject to certain conditions. Understanding these rules helps both employees and employers manage leave balances effectively.

Key Carryover Rules

Employer Consent Required: Carryover typically requires employer approval
Two-Year Maximum: Employees cannot be prevented from taking leave for more than 2 consecutive years
Use It or Lose It: Some companies have policies that require leave to be used within a specific period
Full Payment on Exit: All unused leave must be paid out upon resignation or termination

Best Practices

Employees should plan their leave throughout the year to avoid excessive accumulation. Employers should implement clear leave policies and encourage regular leave-taking to maintain employee well-being and comply with UAE Labour Law requirements.

Frequently Asked Questions

Common questions about annual leave entitlement and calculation in UAE.

Under UAE Labour Law, employees are entitled to 30 days of paid annual leave after completing one year of service. For employees who have worked between 6 months and 1 year, the entitlement is 2 days per month worked. Employees with less than 6 months of service are not yet eligible for annual leave.

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