How much annual leave the law gives
The entitlement sits in Article 29 of Federal Decree-Law 33 of 2021, the federal labour law MOHRE administers, and MOHRE restates it for workers in Dear worker, know your rights. It applies to onshore private sector contracts in every emirate. Article 29(1) sets a minimum of:
- Thirty days for each year of extended service, so 2.5 days for each completed month once the first year is done.
- Two days for each month where the service term is more than six months and less than a year.
- Leave for parts of the last year spent at work, where service ends before the balance is used.
Nothing accrues in the first six months, so the calculator shows a zero balance and the date the two day band starts. The step from the monthly band to the annual band is real: eleven months of service is 22 days, and one full year is 30. Article 29(4) adds that leave is taken in its entitlement year, that the employer may set the dates around the work and in agreement with the worker, and that the worker must be told the date at least a month in advance.
How UAE leave salary is calculated, and on which wage
This is where most leave salary questions actually sit, and the law gives two different answers depending on what is happening.
Leave being taken: the full wage. Article 29(1) grants annual leave "with full wage" and Article 29(6) says the worker is entitled to the wage for the period of the annual leave. Article 1 of the same decree defines wage as the basic wage plus the cash allowances and benefits in kind allocated to the worker under the contract or the decree, and defines basic wage as the contractual wage for the work itself, excluding other allowances and benefits in kind. So the pay packet during leave should look like an ordinary month: basic plus the allowances the contract allocates. Which allowances a particular contract allocates as part of the wage is a contractual question, and MOHRE and the courts decide disputes about individual items.
Unused leave paid out at the end: the basic wage. Article 29(9) says the worker is entitled to a wage for the accrued leave days if he quits the work before using them, regardless of the leave duration, and to leave wage for parts of the year in proportion to the period spent in work, calculated according to the basic wage. Article 19(2) of the Implementing Regulation, Cabinet Resolution 1 of 2022, repeats it: where service ends, the balance of legally due annual leave is paid as a cash allowance according to the basic wage. That is why the same 25 day balance is worth two different amounts in the worked example below.
The divisor is in the decree itself. Article 67, on the calculation of periods and dates, states that in applying its provisions the Gregorian year includes 365 days while the month represents 30 days, so a monthly wage becomes a daily rate by dividing by 30. That fits annual leave being counted in calendar days rather than working days, and Article 29(7), which counts public holidays falling inside annual leave as part of it unless the contract or the establishment's regulations are more useful to the worker.
Carrying leave forward and cashing it out during employment
Article 29(5) lets a worker carry the balance or days of it into the following year with the employer's approval and in line with the establishment's regulations. Article 19(1) of the Implementing Regulation puts a limit on it: not more than half of the annual leave may be carried forward, or the worker may agree with the employer to receive a cash allowance in lieu, according to the wage received at the time of entitlement to the leave. Note the basis there: a cash allowance agreed while the employment continues follows the wage at the time of entitlement, not the basic wage rule that applies at exit.
Article 29(8) closes the loop. The employer may not prevent a worker from benefiting from annual leave accrued for more than two years, unless the worker wishes to carry it forward or receive a cash allowance for it, in line with the establishment's regulations and the Implementing Regulation. A very large balance in the calculator is worth checking against what the company's leave policy actually allows to accumulate.
Worked example
Basic wage AED 9,000, allowances paid during leave AED 6,000, employed from 1 January 2022, last working day 30 June 2026, 110 days of annual leave already taken. Press "Load the worked example" in the calculator to see the same lines live.
| Line | Working | Result |
|---|---|---|
| Service counted | 1 January 2022 to 30 June 2026 inclusive | 4 years 6 months |
| Days accrued | 4 x 30 + 30 x 6/12 | 135 days |
| Days remaining | 135 - 110 | 25 days |
| Daily rate if the leave is taken | (9,000 + 6,000) / 30 | AED 500.00 |
| Daily rate if the balance is paid out at exit | 9,000 / 30 | AED 300.00 |
| Leave salary for 25 days taken | 25 x 500 | AED 12,500.00 |
| Encashment of the same 25 days at exit | 25 x 300 | AED 7,500.00 |
The gap of AED 5,000 on the same 25 days is the whole reason this page has two modes. It is also why a final settlement is worth checking line by line: the leave balance is paid on basic, while the months worked before it were paid on the full wage. u.ae states that employers must pay all outstanding wages, other entitlements and gratuity within 14 days of the termination of the contract, so the leave balance is settled in the same window as the gratuity.
Assumptions and exclusions
- Onshore private sector contract under Federal Decree-Law 33 of 2021. DIFC and ADGM run their own employment regulations, domestic workers are on a separate law, and part time workers have leave set from actual hours worked under Article 29(2) and Article 18 of the Implementing Regulation.
- The daily rate is the monthly wage divided by 30, following Article 67, which fixes the month at 30 days and the year at 365 days for applying the decree.
- Whole years run from the start date to each anniversary. The decree does not set a formula for pro rating the year in progress, so this calculator values it as months divided by 12 plus days divided by 365, the same convention the gratuity calculator uses, so the two settlement figures agree.
- The calculation date counts as a day of service, so 1 January to 31 December is exactly one year.
- Under a year, two days are counted for every completed month of service once the service term passes six months. Some employers instead count two days only for months after the sixth. The difference is up to twelve days in the first year, so check the contract and the leave policy.
- "More than six months" is read strictly: six months and no days does not qualify, six months and one day does.
- Only annual leave. Sick leave under Article 31, maternity leave under Article 30 and the bereavement, parental and study leave in Article 32 have their own rules and are not counted here.
- Unpaid leave, secondment and breaks in continuity are not modelled. Deductions for amounts owed to the employer, contractual top ups and settlement agreements are not included either.
How Axion People tracks leave balances
In Axion, the People box holds the start date, the wage split between basic and allowances, and the leave taken against each employee, so the balance is a running figure rather than a spreadsheet rebuilt at resignation. Leave requests draw the balance down, the accrual follows the same Article 29 bands, and the final settlement picks up the remaining days on the basic wage next to the gratuity accrual, in Arabic and English. Axion reports the figures; paying them and filing with MOHRE stays with you.
Frequently asked questions
How is leave salary calculated in the UAE?
Take the monthly wage the leave is paid on, divide it by 30 to get a daily rate, and multiply by the number of annual leave days. The days come from Article 29 of Federal Decree-Law 33 of 2021: 30 days for each completed year of service, two days for each month once the service term is more than six months and under a year, and a proportionate part of the year in progress. The divisor of 30 follows Article 67 of the same decree, which states that in applying its provisions the Gregorian year is 365 days and the month is 30 days.
Is leave salary paid on basic salary or total salary in the UAE?
It depends on which question you are asking. Article 29(1) gives annual leave with full wage and Article 29(6) says the worker is entitled to the wage for the period of the annual leave, and Article 1 defines wage as the basic wage plus the cash allowances and benefits in kind allocated under the contract, so leave that is actually taken is paid on the full wage. Article 29(9) and Article 19(2) of the Implementing Regulation say the accrued days paid out when service ends are calculated according to the basic wage, so encashment at exit is basic only.
How many days of annual leave do you get in the UAE?
Article 29(1) sets a minimum of 30 days for each year of extended service, and two days for each month where the service term is more than six months and less than a year. Where service ends before the balance is used, the worker is also entitled to leave for the part of the last year worked. These are minimums, so a contract or a company policy can be more generous.
Can unused annual leave be carried forward in the UAE?
Article 29(5) lets the worker carry the balance or days of it into the following year with the employer's approval and in line with the establishment's regulations, and Article 19(1) of the Implementing Regulation caps that at not more than half of the annual leave, or lets the worker agree with the employer to take a cash allowance in lieu, according to the wage received at the time of entitlement to the leave. Article 29(8) adds that the employer may not prevent the worker from using leave accrued for more than two years unless the worker wants to carry it forward or be paid for it.
How is leave encashment calculated when you leave a job in the UAE?
Work out the days accrued over the whole service period, subtract the days already taken, and pay the balance at the daily basic wage. Article 29(9) says the worker is entitled to a wage for the accrued leave days if he quits before using them, regardless of the leave duration, and to leave wage for parts of the year in proportion to the period spent in work, calculated according to the basic wage. u.ae states that employers must pay all outstanding wages, other entitlements and gratuity within 14 days of the termination of the contract.
Do public holidays inside annual leave count as leave days?
Article 29(7) says holidays prescribed by law or by agreement are included in the calculation of the annual leave period if they fall within the worker's annual leave and form a part of it, unless the employment contract or the regulations in force at the establishment provide for something more useful to the worker. The article states the entitlement as 30 days rather than 30 working days.
Related tools and guides
- UAE gratuity calculator, the other half of a final settlement, on the same 21 and 30 day basic wage rules.
- End of service gratuity across the GCC in 2026, for how the exit settlement works in all six states.
- GCC payroll compliance in 2026: WPS, GOSI and gratuity, for the pay run the leave balance sits inside.
- What is inside the Axion boxes and how they are priced.
- All Axion tools and the Axion FAQ.
Sources
All sources checked on 5 September 2026.
- MOHRE, Federal Decree-Law No. 33 of 2021 regarding the regulation of employment relationships and its amendments, bound in the same PDF as Cabinet Resolution No. 1 of 2022, the Implementing Regulation: Article 1 definitions, Article 29 annual leave, Article 67 on the 365 day year and the 30 day month, and Article 19 of the Implementing Regulation on carrying leave forward and cash allowance in lieu
- MOHRE guidance, Dear worker, know your rights: the annual leave entitlement, carry forward, wage during leave and payment for accrued days on leaving, in plain language
- u.ae, End of service benefits for workers in the private sector: employers must pay all outstanding wages, other entitlements and gratuity within 14 days of the termination of the contract
This calculator gives an estimate based on Article 29 of Federal Decree-Law 33 of 2021, Article 19 of its Implementing Regulation and the 30 day month set by Article 67. It is not legal advice and it is not a government or MOHRE tool. Employment contracts, company leave policies and settlement agreements can be more generous than the statutory minimum, and MOHRE and the courts decide disputes. Check the final figure with your employer or a qualified adviser before relying on it.