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UAE Leave Salary Calculator 2026
Work out what is paid for annual leave, or for unused leave when someone leaves, under UAE Labour Law. The amount updates as you type.
Updated 11 June 2026 · Federal Decree-Law No. 33 of 2021 (UAE Labour Law)
Leave salary paid before the leave starts, on basic salary plus fixed allowances.
- 30 daysa year after one year of service
- 6 monthsof service before leave is earned
- 2 daysa month between 6 and 12 months
- ÷ 30salary divided by 30 for the daily rate
- 0% taxleave salary is tax-free in the UAE
- In advancepaid before the leave starts
How the amount is worked out
Three steps, shown with your own figures once you enter them.
- Find the daily rate
Salary ÷ 30Taking leave uses basic salary plus fixed allowances.
- Multiply by the days
Daily rate × leave daysEvery calendar day counts, using a 30-day month.
- Paid before the leave starts
Before the first day of leaveLeave salary is paid in advance, and it is tax-free.
In this article
What is leave salary in the UAE?
Leave salary is the payment an employee receives during their annual leave period in the UAE. Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees are entitled to paid annual leave, and the leave salary is calculated based on the employee's basic salary using the formula: Basic Salary ÷ 30 × Number of Leave Days.
Key leave salary facts
- Eligibility: Minimum 6 months of continuous service
- Entitlement: 30 days per year after completing 1 year
- Accrual (6–12 months): 2 days per month
- Calculation basis: Basic salary (excluding allowances)
- Payment timing: Paid before leave starts
Who is eligible for annual leave?
Employees become eligible for annual leave after completing six months of continuous service with their employer. During the period between 6 months and 1 year, employees accrue 2 days of leave per month worked. After completing one full year of service, employees are entitled to 30 days of paid annual leave per year.
When is leave salary paid?
UAE employers are required by law to pay leave salary before the employee starts their annual leave. This advance payment allows employees to manage personal expenses during their time off. For leave encashment upon resignation or termination, the payment is included in the final settlement along with gratuity and any outstanding wages.
UAE leave salary calculation formula 2026
Standard formulaLeave salary = (Basic salary ÷ 30) × Number of leave days
- Basic salary = your monthly basic salary in AED
- 30 = standard days in a month for the calculation
- Leave days = number of leave days requested or unused
Leave salary calculation example
Say your basic salary is AED 10,000 and you want to take 15 days of leave:
- Daily rate = AED 10,000 ÷ 30
- AED 333.33
- 15 days × AED 333.33
- AED 5,000.00
- Leave salary
- AED 5,000.00
This amount should be paid to you before your leave starts. The calculation uses basic salary only — housing, transport, and other allowances are excluded unless your contract specifies otherwise.
Annual leave entitlement in the UAE
| Service period | Leave entitlement | How it works |
|---|---|---|
| Less than 6 months | 0 days | Not eligible for annual leave |
| 6–12 months | 2 days per month | Accrues proportionally each month |
| 1+ year | 30 days per year | Full annual entitlement (2.5 days/month) |
Leave accrual rules
Annual leave accrues proportionally throughout the year. After completing 6 months of service, you start accruing leave at the rate of 2 days per month. Once you complete 1 full year, your entitlement increases to 30 days annually, which continues to accrue at approximately 2.5 days per month throughout your employment.
Carryover rules
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. Company policies may have specific rules about carryover limits, so always check your employment handbook.
Leave encashment on resignation in the UAE
When you resign or are terminated from your job in the UAE, all accrued but unused annual leave days must be paid out in cash as part of your final settlement. This is commonly known as leave encashment.
How encashment works
Leave encashment uses the same formula as regular leave salary: (Basic Salary ÷ 30) × Unused Leave Days. The key difference is that encashment is calculated based on your basic salary only, even if your contract includes allowances in your regular leave salary. The payment is included in your final settlement along with gratuity and any outstanding wages.
- Daily rate = AED 8,000 ÷ 30
- AED 266.67
- 20 days × AED 266.67
- AED 5,333.40
- Leave encashment
- AED 5,333.40
Payment timeline
Leave encashment is paid as part of your final settlement, which employers are required to process within 14 days of your last working day. This includes your gratuity, any unpaid salary, and the encashment amount for unused leave days.
Related reading: Annual leave encashment UAE: rules & calculation · UAE gratuity calculator · Notice period in UAE: rules & final settlement
Leave salary in different scenarios (2026)
How your leave salary is calculated depends on how and when your employment situation changes. Here is how UAE Labour Law treats the most common scenarios.
Scenario 1: Resignation with unused leave
If you resign with unused annual leave days, your employer must pay cash for the full accrued balance as part of your final settlement, calculated on your basic salary. It does not matter that you resigned voluntarily — accrued leave is an earned entitlement and cannot be forfeited.
- Basic salary · unused leave
- AED 7,000 · 12 days
- Daily rate = AED 7,000 ÷ 30
- AED 233.33
- Encashment = 12 × AED 233.33
- AED 2,800.00
Scenario 2: Termination by the employer
The entitlement is identical whether you resign or are terminated. Accrued unused leave must be encashed at your basic salary rate in both cases, and the payment is due within 14 days of your last working day together with the rest of your final settlement. Termination — including dismissal — does not erase leave you have already accrued.
Scenario 3: During the probation period
Annual leave starts accruing only after 6 months of continuous service. Since probation in the UAE is capped at 6 months, most employees begin accruing leave right around the time probation ends. If your employment ends during probation with less than 6 months of service, no annual leave encashment is due. Importantly, probation months are not lost — they count toward your continuous service for leave accrual and gratuity.
Scenario 4: Public holidays during annual leave
Under Article 29 of Federal Decree-Law No. 33 of 2021, official public holidays and sick days that fall within your annual leave count as part of the leave — unless your employment contract or company policy states otherwise. If you want holidays excluded from your leave balance, check your contract terms before booking leave around UAE public holidays.
Leave salary examples by salary level (2026)
The table below shows the daily rate, a typical 15-day leave payment, and a full 30-day encashment for common UAE salary levels — all calculated on basic salary using the MOHRE-compliant formula (Basic ÷ 30 × days).
| Basic salary | Daily rate (÷ 30) | 15 days leave | 30 days encashment |
|---|---|---|---|
| AED 5,000 | AED 166.67 | AED 2,500.00 | AED 5,000.00 |
| AED 8,000 | AED 266.67 | AED 4,000.00 | AED 8,000.00 |
| AED 10,000 | AED 333.33 | AED 5,000.00 | AED 10,000.00 |
| AED 15,000 | AED 500.00 | AED 7,500.00 | AED 15,000.00 |
| AED 20,000 | AED 666.67 | AED 10,000.00 | AED 20,000.00 |
A useful rule of thumb: encashing a full 30-day balance equals exactly one month of basic salary. Remember that when you take leave during employment, fixed allowances may be included — use the calculator above with your own figures for an exact amount, or check your accrued days first with the Annual Leave Calculator.
Questions, answered.
Leave salary in UAE is calculated using the formula: (Basic Salary ÷ 30) × Number of Leave Days. For example, if your basic salary is AED 10,000 and you take 15 days of leave, your leave salary would be (10,000 ÷ 30) × 15 = AED 5,000. This calculation uses basic salary only, excluding allowances unless your contract specifies otherwise.
Leave salary is calculated based on your basic salary only. Housing allowance, transport allowance, and other variable components are typically excluded unless your employment contract explicitly states that 'full salary' includes these allowances. Always check your contract to understand what constitutes your leave salary base.
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 entitled to annual leave.
Yes, upon resignation or termination, you can encash any unused annual leave days. The encashment is calculated based on your basic salary only: (Basic Salary ÷ 30) × Unused Leave Days. This amount is paid as part of your final settlement along with gratuity and any outstanding wages.
Under UAE Labour Law, employers must pay leave salary before the employee starts their annual leave. This advance payment allows employees to manage personal expenses during their time off. For leave encashment upon exit, the payment is included in the final settlement within 14 days of termination.
When you take annual leave during employment, you receive your leave salary in advance before starting the leave. Leave encashment occurs when you resign or are terminated with unused leave days, and those days are converted to cash payment. Both use the same formula: (Basic Salary ÷ 30) × Leave Days.
Employers can schedule annual leave based on business needs, but they cannot deny employees their legal entitlement to annual leave. UAE Labour Law states that employees cannot be prevented from using their accrued leave for more than two consecutive years. However, carryover of leave beyond the current year requires employer consent.
Annual leave accrues proportionally throughout the year. After completing 6 months of service, you start accruing 2 days per month. After completing 1 year, you're entitled to 30 days annually, which accrues at approximately 2.5 days per month. Accrual continues throughout your employment.
No, leave salary is not taxable in the UAE. The UAE does not impose personal income tax on residents, which includes all employment-related income such as leave salary, gratuity, and regular wages. Your entire leave salary amount is paid without any tax deductions.
When you resign, all accrued but unused annual leave days must be paid out in cash as part of your final settlement. The calculation is based on your basic salary: (Basic Salary ÷ 30) × Unused Days. This applies whether you resign or are terminated by your employer.
Yes, with employer consent, unused annual leave can be carried over to the following year. However, UAE Labour Law mandates that employees must be allowed to take their accrued leave within two years. Company policies may have specific rules about carryover limits.
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.
It depends on the situation. When you take annual leave during employment, you receive your full wage (basic salary plus fixed allowances such as housing and transport). When unused leave is encashed on resignation or termination, the calculation uses basic salary only. This distinction comes from Article 29 of Federal Decree-Law No. 33 of 2021.
MOHRE applies the formula set by Federal Decree-Law No. 33 of 2021: daily rate = salary ÷ 30, multiplied by the number of leave days. For leave taken during employment the full wage applies; for encashment on exit only basic salary applies. This calculator uses the same MOHRE-compliant formula, so results match what a MOHRE labour complaint or settlement would compute.
Annual leave starts accruing after 6 months of continuous service. Since probation in the UAE cannot exceed 6 months, you typically begin accruing leave around the time probation ends. If your employment ends during probation with less than 6 months of service, no leave encashment is due. However, probation months count toward your continuous service, so they are not lost.
Yes, by default. Under Article 29 of Federal Decree-Law No. 33 of 2021, official public holidays and sick days falling within your annual leave are counted as part of the leave, unless your employment contract or company policy states otherwise. Check your contract if you plan leave around public holidays.
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