UAE Labour Law · Article 73
Your leave is worth a specific amount
30 days per year standard (plus 2 Emiratisation days if applicable). Calculate the value of unused leave — whether at end of employment or as an interim payout.
Basic salary only (exclude allowances).
Days carried forward or accrued but not taken.
Leave encashment value
5,000 AED
How it works
The leave encashment formula
All employees are entitled to 30 calendar days of paid annual leave per year. Emiratis employed via Nafis also earn 2 additional days. Daily rate = basic salary ÷ 30 days. Unused leave at the end of each year can be carried forward (max 10 days per year in most cases), and any leave in excess of carry-forward is either paid out or forfeited depending on the contract. At end of employment, all accrued but unused leave must be paid in cash. Part years are pro-rata.
Common questions
Annual Leave Q&A
Can my employer refuse to let me take leave?
No — leave is a legal entitlement. Your employer can schedule when you take it (within reason), but cannot take it away or pay it out in place of you actually taking time off. If you leave your job, any unused leave must be paid as cash.
How much leave can I carry forward to the next year?
Typically 10 days per year can carry forward, depending on your sector and contract. Any excess above that threshold is usually forfeited unless your contract specifies otherwise. Some sectors or senior roles may allow more — check your contract or employer policy.
What if my employer made me forfeit leave I accrued?
Forfeiture of earned leave is generally not permitted under UAE law — all accrued leave is paid if unused. If you believe your employer withheld pay for earned leave, file a wage claim at MOHRE within one year.
Do Emiratis really get 2 extra days per year?
Yes — Emiratis (UAE nationals) employed through the Nafis system are entitled to 2 additional paid annual leave days beyond the standard 30, totalling 32 days. Other benefits may also differ; check with your employer for the full scope.
Is leave pay calculated on basic or total salary?
Basic salary only — housing, transport and other allowances do not count. This is the same basis used for gratuity, overtime, and final settlement calculations. Your leave payout = (basic ÷ 30) × number of leave days.
Accrual, carry-over and payout
How annual leave actually works
Annual leave entitlement is set by Federal Decree-Law No. 33 of 2021. The headline number is well known. What causes problems is everything around it: how leave accrues in the first year, what happens to days you did not take, and what they are worth when you leave.
Entitlement
| After one year of service | 30 calendar days per year. |
|---|---|
| Six to twelve months | 2 working days per month. |
| Under six months | No statutory annual leave entitlement. |
| Public holidays | Separate from annual leave and do not reduce the entitlement. |
Note that the 30 days are calendar days, not working days, which is a common source of confusion when employees compare their entitlement with schemes elsewhere.
Carry-over
Leave is intended to be taken in the year it accrues. Where it is not, the law contemplates carrying forward a portion into the following year, or payment in lieu, by agreement with the employer. An employer can also require leave to be taken at a particular time for operational reasons, provided the employee is given proper notice.
What untaken leave is worth
On termination, accrued but untaken leave is paid out. The payment is calculated on basic salary, following the same logic as gratuity and overtime, which again means the figure is lower than employees expect when their package carries large allowances.
Leave accrued during a period of unpaid leave does not count, because unpaid leave does not accrue service.
Leave salary and travel
Salary continues during annual leave. Where a contract provides for an annual air ticket, that is a contractual benefit rather than a statutory one, so its terms are whatever the contract says. Read it before assuming an entitlement exists, and check whether it is paid as cash or booked as a ticket.
If leave is refused or unpaid
Refusing all leave, or refusing to pay accrued leave on exit, is a matter for a MOHRE complaint. Keep your own record of leave taken and requested, because the practical dispute is almost always about evidence. The settlement calculator includes untaken leave in the final figure, and the labour law guide sets out the complaint process.
Common questions
How much annual leave am I entitled to in the UAE?
30 calendar days per year after completing one year of service, and 2 working days per month for service between six and twelve months. Public holidays are separate and do not reduce the entitlement.
Is untaken annual leave paid out when I leave?
Yes. Accrued but untaken leave is paid on termination, calculated on basic salary rather than total package.
Can I carry annual leave into the next year?
The law contemplates carrying forward a portion or payment in lieu by agreement with the employer. Leave is intended to be taken in the year it accrues.
Can my employer tell me when to take leave?
Yes, an employer can require leave to be taken at a particular time for operational reasons, provided proper notice is given.