UAE Leave Salary Calculator
Work out the value of your unused annual leave — instantly, per UAE Federal Decree-Law No. 33 of 2021, Article 29
Leave salary calculator
Quick answer
In the UAE, unused annual leave is paid out on the basic wage only: encashment = (basic monthly salary ÷ 30) × number of unused leave days. Annual-leave entitlement is 30 days a year (2.5 days a month) once you complete one year of service, and 2 days a month between six and twelve months. Salary paid during leave you actually take is on your full wage (basic + allowances); only the unused-leave payout on leaving is restricted to basic.
At a glance
- Entitlement
- 30 days/year (2.5/month) after 1 year
- Encashment base
- Basic salary only (÷30)
- Leave pay (days taken)
- Full wage (basic + allowances)
- Law
- Decree-Law 33/2021, Art. 29
What "leave salary" means in the UAE
"Leave salary" is used two ways. The first is the salary you receive while on annual leave — paid on your full wage. The second, and the one most people are calculating, is the cash value of annual leave you did not take, paid to you when your employment ends. This is often called leave encashment.
Under Article 29 of Federal Decree-Law No. 33 of 2021, unused-leave encashment on termination is calculated on the basic wage only — housing, transport and other allowances are excluded. Cabinet Resolution No. 1 of 2022 confirms the same basis.
How much annual leave you accrue
- •Less than 6 months of service: no statutory annual-leave entitlement.
- •Between 6 and 12 months: 2 days of leave for each month worked.
- •1 full year or more: 30 days a year — equivalent to 2.5 days for each month of service.
How leave encashment is calculated
- 1
Find your accrued leave
Apply the entitlement rule to your months of service (2.5 days per month once you pass one year).
- 2
Subtract leave already taken
Deduct the annual-leave days you have used to get your unused balance.
- 3
Work out the daily wage
Divide your monthly basic salary by 30 to get the daily rate used for encashment.
- 4
Multiply
Unused days × daily basic wage = your leave encashment amount.
Worked examples
AED 9,000 basic, 2 years, 20 days taken
- Accrued: 2.5 × 24 months = 60 days
- Unused: 60 − 20 = 40 days
- Daily wage: 9,000 ÷ 30 = AED 300
- 40 × 300 = AED 12,000
AED 6,000 basic, 9 months, 0 days taken
- Accrued (6–12 month tier): 2 × 9 = 18 days
- Daily wage: 6,000 ÷ 30 = AED 200
- 18 × 200 = AED 3,600
Frequently asked questions
Is leave salary calculated on basic or total salary in the UAE?
Unused-leave encashment on termination is calculated on the basic wage only (Federal Decree-Law 33/2021, Art. 29). Allowances such as housing and transport are excluded. Salary paid during leave you actually take, however, is on your full wage.
How many annual leave days am I entitled to in the UAE?
Thirty calendar days a year once you complete one year of service — 2.5 days for each month. Between six and twelve months of service you accrue two days a month; below six months there is no statutory entitlement.
How is unused leave paid when I leave a job?
Your unused annual-leave balance is multiplied by your daily basic wage (basic ÷ 30). It is paid as part of your final settlement when your employment ends.
Do I get leave salary if I resign?
Yes. Payment for unused annual leave is due whether you resign or are terminated — it is not a resignation-reduced benefit like gratuity can be in some countries.
Does leave salary include my housing allowance?
Not for the unused-leave encashment on termination — that is basic-only. Your housing and other allowances are only relevant to the pay you receive during leave you actually take.
Does this leave salary calculator work for Dubai and Abu Dhabi?
Yes. Federal Decree-Law 33/2021 is a federal law administered by MOHRE, so the same basic-wage encashment rule applies across Dubai, Abu Dhabi and all seven emirates. The exception is the financial free zones — DIFC in Dubai and ADGM in Abu Dhabi — which run their own employment laws, so check your contract if you work in one of those.
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