UAE Leave Salary Calculator
Work out your annual leave salary or unused leave encashment under UAE Labour Law (Federal Decree-Law No. 33 of 2021). Pay while you take leave uses your full wage; encashment of unused leave on exit uses your basic salary. Enter your details below.
Leave Salary Calculator
Calculate your leave salary
Choose whether you are taking leave or cashing out unused days, as the wage base differs.
Estimated leave salary
AED 0
This is an indicative estimate based on Article 29 of Federal Decree-Law No. 33 of 2021 and is not legal or financial advice. Encashment of unused leave is calculated on basic salary; pay while taking leave is calculated on the full wage including allowances. The daily wage here is the monthly figure divided by 30. Carry-forward of unused leave is generally limited to two years and may depend on your employer's bylaws. The DIFC and ADGM free zones follow separate rules. Confirm entitlements with MOHRE or a qualified adviser. ClearPass HR Solutions manages leave accrual, encashment and final settlements as part of payroll.
How leave salary is calculated
UAE Labour Law treats two situations differently, and mixing them up is a common cause of payroll disputes. When you take your annual leave during employment, you are paid your full wage for those days, meaning your basic salary plus any regular allowances. When you leave the company with unused annual leave, that balance is encashed on your basic salary only, with allowances excluded.
The daily rate is your monthly figure divided by 30. For example, if your basic salary is AED 12,000 and you have 10 unused days at the end of your employment, your encashment is 12,000 divided by 30, which is AED 400 a day, multiplied by 10 days, giving AED 4,000.
How many annual leave days you get
Once you have completed one year of continuous service, you are entitled to 30 calendar days of paid annual leave a year, which works out to 2.5 days a month. If you have worked more than six months but less than a year, you earn two days of leave for each month worked. Unused leave can generally be carried forward for up to two years, subject to your employer's policy, and is paid out on termination if not taken.
Leave salary FAQs
How is leave salary calculated in the UAE?
The daily wage is your monthly salary divided by 30, multiplied by the number of leave days. Encashment of unused leave uses your basic salary; pay while taking leave uses your full wage including allowances.
Is leave salary based on basic or gross salary?
It depends. Pay during leave is based on your full wage, basic plus allowances. Encashment of unused leave on termination is based on basic salary only.
How many annual leave days am I entitled to?
30 calendar days a year after completing one year of service, or two days for each month worked if you have between six months and one year of service.
Can I encash unused annual leave?
Yes. Accrued unused leave is paid out on resignation or termination, calculated on basic salary. Encashing leave during employment usually depends on your employer's policy, and unused leave can generally be carried forward for up to two years.
Leave balances that reconcile at exit
Leave accrual, carry-forward and encashment all feed the final settlement, and they have to reconcile against payroll on the day someone leaves. ClearPass HR Solutions tracks leave balances and calculates encashment on the right wage base as part of payroll outsourcing, so final settlements are clean and dispute-free. We manage payroll for more than 3,000 employees across over 135 UAE clients.