UAE Leave Salary Calculator 2026
Free annual leave salary calculator - MOHRE compliant. Calculate your leave pay as per UAE Labour Law instantly. Enter your salary, employment dates, and leave days below.
Housing, transport, etc. Used only for "Taking Leave" calculation.
Leave Salary Payable
AED 0.00
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Annual leave entitlement after 1 year of service
Minimum service required for leave eligibility
Leave accrual per month (6-12 months)
Daily rate formula: Basic salary divided by 30
Leave salary is 100% tax-free in UAE
Leave salary paid before leave starts
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What is Leave Salary in UAE? (2026 Guide)
Leave salary is the payment an employee receives during their annual leave period in the UAE. Under UAE Labour Law (Federal Decree-Law No. 33 of 2021), employees are entitled to paid annual leave, and the leave salary is calculated based on the employee's basic salary using the formula: Basic Salary ÷ 30 × Number of Leave Days.
Key Leave Salary Facts:
- Eligibility: Minimum 6 months of continuous service
- Entitlement: 30 days per year after completing 1 year
- Accrual (6-12 months): 2 days per month
- Calculation Basis: Basic salary (excluding allowances)
- Payment Timing: Paid before leave starts
Who is Eligible for Annual Leave?
Employees become eligible for annual leave after completing six months of continuous service with their employer. During the period between 6 months and 1 year, employees accrue 2 days of leave per month worked. After completing one full year of service, employees are entitled to 30 days of paid annual leave per year.
When is Leave Salary Paid?
UAE employers are required by law to pay leave salary before the employee starts their annual leave. This advance payment allows employees to manage personal expenses during their time off. For leave encashment upon resignation or termination, the payment is included in the final settlement along with gratuity and any outstanding wages.
UAE Leave Salary Calculation Formula 2026
Standard Formula:
Leave Salary = (Basic Salary ÷ 30) × Number of Leave DaysWhere:
- Basic Salary = Your monthly basic salary in AED
- 30 = Standard days in a month for calculation
- Leave Days = Number of leave days requested or unused
Leave Salary Calculation Example
Let's say your basic salary is AED 10,000 and you want to take 15 days of leave:
Daily Rate = AED 10,000 ÷ 30 = AED 333.33
Leave Salary = 15 days × AED 333.33 = AED 5,000
Leave Salary = AED 5,000.00This amount should be paid to you before your leave starts. The calculation uses basic salary only — housing, transport, and other allowances are excluded unless your contract specifies otherwise.
Annual Leave Entitlement in UAE
| Service Period | Leave Entitlement | How It Works |
|---|---|---|
| Less than 6 months | 0 days | Not eligible for annual leave |
| 6-12 months | 2 days per month | Accrues proportionally each month |
| 1+ year | 30 days per year | Full annual entitlement (2.5 days/month) |
Leave Accrual Rules
Annual leave accrues proportionally throughout the year. After completing 6 months of service, you start accruing leave at the rate of 2 days per month. Once you complete 1 full year, your entitlement increases to 30 days annually, which continues to accrue at approximately 2.5 days per month throughout your employment.
Carryover Rules
With employer consent, unused annual leave can be carried over to the following year. However, UAE Labour Law mandates that employees cannot be prevented from using their accrued leave for more than two consecutive years. Company policies may have specific rules about carryover limits, so always check your employment handbook.
Leave Encashment on Resignation in UAE
When you resign or are terminated from your job in the UAE, all accrued but unused annual leave days must be paid out in cash as part of your final settlement. This is commonly known as leave encashment.
How Encashment Works
Leave encashment uses the same formula as regular leave salary: (Basic Salary ÷ 30) × Unused Leave Days. The key difference is that encashment is calculated based on your basic salary only, even if your contract includes allowances in your regular leave salary. The payment is included in your final settlement along with gratuity and any outstanding wages.
Example Calculation
If your basic salary is AED 8,000 and you have 20 unused leave days:
Daily Rate = AED 8,000 ÷ 30 = AED 266.67
Encashment = 20 days × AED 266.67 = AED 5,333.40
Leave Encashment = AED 5,333.40Payment Timeline
Leave encashment is paid as part of your final settlement, which employers are required to process within 14 days of your last working day. This includes your gratuity, any unpaid salary, and the encashment amount for unused leave days.
Frequently Asked Questions
Common questions about annual leave and leave salary calculation in UAE.
Leave salary in UAE is calculated using the formula: (Basic Salary ÷ 30) × Number of Leave Days. For example, if your basic salary is AED 10,000 and you take 15 days of leave, your leave salary would be (10,000 ÷ 30) × 15 = AED 5,000. This calculation uses basic salary only, excluding allowances unless your contract specifies otherwise.
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Automate Leave Management for Your Team
Book a personalized demo and discover how RadixHR can automate leave tracking, approvals, and salary calculations for your entire organization.
Automated Leave Calculations
Leave salary and encashment calculated automatically based on UAE Labour Law.
Employee Self-Service
Employees can check leave balance, request leave, and track approvals from the app.
Manager Approvals
One-tap approvals with conflict detection and team calendar visibility.
Payroll Integration
Leave salary automatically syncs with payroll for accurate WPS payments.