UAE Leave Salary & Encashment 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
Leave salary calculation in the UAE comes down to one base: unused annual leave is paid on your basic wage only, so the payout is (monthly basic salary ÷ 30) × your unused leave days. Article 29 of Federal Decree-Law No. 33 of 2021 pays every unused day, including leave earned in the final part-year, and it makes no difference whether you resign or are terminated. Salary paid while you are actually on leave is different: that uses your full wage, basic plus allowances.
At a glance
- Payout formula
- Basic salary ÷ 30 × unused days
- Encashment base
- Basic salary only (Art. 29)
- Unused days paid
- All of them, incl. the final part-year
- 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, which is 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 leaving is calculated on the basic wage only; housing, transport and other allowances are excluded. Cabinet Resolution No. 1 of 2022 confirms the same basis.
Start from your unused leave balance
Leave salary is only as accurate as the balance it multiplies. If you are not sure how many unused days you have, count them first with the annual leave calculator, then enter the balance here.
Leave salary after resignation or termination
How your job ends does not change your leave salary. Article 29 pays a worker who leaves before using their leave for every unused day, whatever the number, on the basic wage. The rule is the same for a resignation, a termination or a fixed-term contract that simply runs out, and nothing is deducted for resigning.
Two details matter at the end. First, the final part-year counts: Article 29 gives you leave for the fraction of your last year, so the completed months since your last work anniversary still add days to the payout. Second, leave you carried forward with your employer's approval is still payable, even if your balance is above 30 days.
The payout is part of your final settlement, which your employer must pay together with the rest of your dues within 14 days of the contract ending (Article 53). To see it next to your gratuity and any notice pay, use the final settlement calculator.
How to calculate leave salary in the UAE
- 1
Find your accrued leave
Apply the entitlement rule to your completed months of service: 2.5 days per month once you pass one year, 2 days per month between six and twelve months.
- 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 salary payout.
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 8,000 basic, resigned after 3 years 6 months, 45 days taken
- Accrued: 2.5 × 42 months = 105 days (the 6 months of the final year count)
- Unused: 105 − 45 = 60 days
- Daily wage: 8,000 ÷ 30 = AED 266.67
- 60 × 266.67 = AED 16,000, the same as if the employer had terminated
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 leaving 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 is leave salary calculated after resignation in the UAE?
Exactly as it is after termination: every unused day × your basic salary ÷ 30, including leave earned in the completed months of your final year. Article 29 makes no reduction for resigning, and the payout is due with your final settlement within 14 days of the contract ending.
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.
Is leave carried forward still paid out at the end?
Yes. Article 29 pays every unused day when you leave, whatever the number, so leave carried forward with your employer's approval is included even if your balance is above 30 days.
Does leave salary include my housing allowance?
Not for the unused-leave encashment on leaving, which 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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