Quick Answer
UAE annual leave entitlement under Article 29 of Federal Decree-Law No. 33 of 2021 is 30 calendar days per year after completing 12 months of service. Employees with 6 to 12 months of service earn 2 calendar days per month. Unused leave is paid out at the daily basic salary rate on termination. Cash substitution for leave during active employment is not permitted.
Federal Decree-Law No. 33 of 2021 · Article 29
Annual Leave Accrual — Two Tiers Under Article 29
| Service Length | Leave Entitlement | Example | Article |
|---|---|---|---|
| Under 6 months | No entitlement — below qualifying threshold | 0 days | Article 29 |
| 6 to 12 months | 2 calendar days per month of service | 6 months = 12 days | Article 29 |
| 12 months or more | 30 calendar days per year | 1 year = 30 days | Article 29 |
Leave Payout on Termination — Three Worked Examples
AED 15,000 basic salary — 15 days unused leave
AED 30,000 basic salary — 30 days unused leave (1 full year)
AED 60,000 basic salary — 45 days unused leave (1.5 years)
Employer Error to Avoid: Paying cash in lieu of annual leave during active employment is prohibited by Article 29. Leave payout is only permitted at employment termination. Employers who routinely cash out leave instead of granting it face MoHRE complaints.
Mainland vs DIFC Annual Leave Comparison
| Factor | Mainland UAE (Article 29) | DIFC (Employment Law No. 2 of 2019) |
|---|---|---|
| Annual entitlement | 30 calendar days after 12 months | 20 working days |
| Cash substitution during employment | Prohibited | As per DIFC law |
| Payout basis on exit | Daily basic salary (monthly ÷ 30) | As per DIFC law |
| Employer scheduling right | Yes — with advance notice | As per DIFC law |
Frequently Asked Questions
How many days of annual leave do UAE employees get per year?
30 calendar days per year after completing 12 months of continuous service under Article 29 of Federal Decree-Law No. 33 of 2021. Employees with 6 to 12 months of service earn 2 calendar days per month worked.
Can a UAE employer pay cash instead of granting annual leave?
No. Article 29 prohibits cash substitution for annual leave during active employment. Leave payout is only permitted at the point of employment termination.
How is annual leave paid out at termination?
At the daily basic salary rate — monthly basic salary divided by 30. An employee on AED 30,000 basic with 30 unused leave days receives AED 30,000. Allowances and bonuses are excluded.