UAE Leave Salary Calculator 2026

What is Leave Salary in UAE? (2026 Guide)

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.

Annual Leave Entitlement in UAE

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 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.

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.