Leave Salary in UAE

Federal Law No. 33/2021 has announced the proper way to calculate leave salary in UAE. As per the law, employees will be given a leave of 30 days, paid according to their basic salary. This rule is for those employees who are hired on a contract basis. But the situation is different for those who have unlimited contracts for their job. Their leave salary calculation formula will be (Basic Salary × 30) ÷ 30 days. If the leave is requested before the completion of the year, their leave will not be accepted as paid. However, sick and maternity leaves have their own rules for approval. Online tools which are totally free can help in calculation of your leave salary.

Leave Salary in UAE (2026)

The UAE has set some rules for calculating leave salary as per the labour law. The information is important for both employees and employers to know about their rights. One will get to know if the company is following MOHRE (Ministry of Human Resources and Emiratisation) rules.

The Labour Law of the UAE, which is also known as Federal Law No. 33/2021 set some rules for leave and how much salary will be provided after one year of job completion. MOHRE ensures that the rules set by the government must be followed and not violated at any cost. So, they have also considered some exceptional cases for leave salary in UAE.

This leave salary allows employees to keep a balance between their work and personal life. However, it is confusing sometimes to calculate when someone has done overtime, part-time, bonuses or any other allowance. They think it might be included in the leave salary. But the leave salary in UAE is paid only at the basic salary and not for anything else.

Key Points for Leave Salary

A person is eligible to get paid leave only after completing one year of their job. After that, their leave salary will be given based on their basic salary. In this paid leave, other allowances like housing, treatment, transportation and rent are not included. It is solely calculated on basic salary.

Leave salary in UAE is the basic salary which is provided upon leave to the employee.
One must complete at least 1 year of their job to be eligible for this paid leave.
The rule is applied to both full-time and part-time employees.

MOHRE, a government body, ensures that all private and government sectors follow the rules of Article 29 of Federal Decree Law No. 33 of 2021.

Leave salary is totally based on basic salary; no other allowances are included. But some people mix it with other benefits of the company. Because few employers are kind, let the allowances be included in the leave salary in UAE. But it does not mean it’s legal. It’s totally their choice of consideration. Being clear about leave salary calculation is helpful because your gratuity is also calculated based on basic salary.

Entitlement of Annual Leave (As per MOHRE UAE guide)

Length of services which an employee has given is set as criteria for entitlement to annual leave as per UAE law.

Suppose the employee is on service for less than 6 months and is asking for paid leave. This period may also fall under the probation period in UAE, during which leave eligibility can differ depending on the employment situation.
As for those who have been on service for 6 months to 1 year, a 2-day leave/month.
The rule is different for those who have completed 1 year or more. They will be awarded 30 days of paid annual leave per year.

The criteria mentioned above are for full-time employees. But part-time employees’ salaries follow pro rata, which means the number of hours per day they have been on service and working.

Rules for Consideration

The month in which the employee is eligible to get leave must be earned. They can choose the date by themselves, but the notice of leave must be given.
Suppose someone is not in need of the leaves instantly. They can shift it to next year with an employer agreement. However, the leaves cannot be collected for more than 2 years.
If the contract is finished and someone has not used their paid leave. They will be awarded through cash compensation by the employer.

Thus, the MOHRE system of entitlement makes sure that employee and employer are at equal benefit by following this labour law.

Step-by-Step Calculation for Leave Salary

Official Formula

Daily Wage = Basic Salary ÷ 30

Leave Salary = Daily Wage × Number of Leave Days

For Full-Time Employee (Example 1)

Basic Salary = AED 9,000

Leave Days = 20

Daily Wage = 9,000 ÷ 30 = 300

Leave Salary = 300 × 20 = AED 6,000

6,000 AED

For Part-Time Employee (Example 2)

Basic Salary = AED 6,000

Working hours = 50% of full-time

Annual Leave = 30 × 50% = 15 days

Daily Wage = 6,000 ÷ 30 = 200

Leave Salary = 200 × 15 = AED 3,000

3,000 AED

This is a general and simple formula that applies to all. Unless and until an employer decides to give some extra benefits to their employee, as per their own choice.

Some Special Cases for Consideration

If someone is giving a resignation before 1 year, officially no annual pay leave for them until the company decides on their own (they should also understand the resignation notice period required under UAE labour law).
But if the resignation is given after 1 year, the employee will get payment for unused annual leave. And the calculation of leave salary in UAE will be as per the official formula.
If the termination is by the employer, the employee will get compensation for their unused leave.

We can understand it through an example:

Employees have 10 unused leave days.

Basic Salary = AED 12,000

Daily Wage = 12,000 ÷ 30 = 400

Leave Salary = 400 × 10 = AED 4,000

The rules are set to make sure that employees get fair benefits for their services to their employer/company.

Types of Leaves in UAE (Some Special Cases)

Annual leaves are not the only leave one can get during their service. There are some other considerations by the government which help employees to do their best during services and are rewarded fairly by the company as well.

Maternity Leave is allowed for 60 days (45 days fully paid, 15 days half-paid).
Parental Leave is set as 5 days, which are fully paid.
Sick Leave is allowed up to 90 days (first 15 days full pay, next 30 days half pay, last 45 days unpaid).
Public Holidays are fully paid, as declared by the UAE Cabinet.
Study Leave, Hajj Leave, and Mourning Leave are allowed as per the law.

Some Tips to Manage Leave Salary in UAE (For Employee)

For accurate calculation of their pay, employees can use payroll software.
MOHRE do announcements from time to time, stay updated with recent announcements.
There must be a maintenance of leave balance record for every employee.
Wage Protection System (WPS) is responsible for salary payment on time.

Frequently Asked Questions

No, leave salary in UAE is given annually to an employee. However, gratuity is rewarded at the end of the service.

As per UAE law, if any public holiday falls within the leave time span, it will be included in annual leave.

Full pay for the first 15 days
Half pay for the next 30 days
No pay for the following 45 days

Employers cannot terminate any of their employees during their sick leave period. However, if the sick leave is completed and the employee is still unable to join the work, the employer has the right of termination.