Your annual leave entitlement
Article 29 of Decree-Law No. 33 of 2021 gives full-time employees:
- 30 calendar days of paid leave for each year of service after the first year.
- 2 days per month if you have worked more than six months but less than one year.
- Leave for the fraction of the final year when your contract ends.
Two kinds of leave salary
| Situation | Salary used |
|---|---|
| You take your leave as holiday | Full wage as in your contract, paid before the leave starts |
| You leave the job with days still unused | Basic salary for each unused day |
Unused leave on exit = (basic salary ÷ 30) × unused days
Example
Basic salary AED 5,400 and 18 unused leave days when the contract ends.
5,400 ÷ 30 = AED 180 a day × 18 days = AED 3,240
Carrying leave forward
You may carry forward leave with your employer’s agreement, but the employer cannot stop you from taking accrued leave for more than two years in a row. Leave that is still unused when the job ends must be paid in the final settlement.
Estimating unused days
If you do not know your balance, open the estimator in the calculator. It multiplies 30 days by your years of service (or 2 days a month if you worked under a year) and subtracts the leave you have already taken. Your HR system is the final reference, especially if your contract gives more than 30 days.
Frequently asked questions
Is leave encashment calculated on basic salary?
Yes. Pay for unused leave days owed when you leave is calculated on the basic wage.
How many leave days do I get in my first year?
After six months you earn 2 days per month. From the end of the first year you get 30 days per year.
Are weekends counted in annual leave?
Annual leave is counted in calendar days. Official public holidays that fall during your leave are generally added to it.
Can my employer refuse to pay unused leave?
No. Accrued leave that has not been taken must be paid when the contract ends.