UAE Annual Leave Rules 2025 — Federal Decree-Law No. 33 of 2021
UAE private sector employees are entitled to 30 calendar days of paid annual leave per year after 1 year of service. Leave salary is calculated differently depending on whether you are going on leave or encashing unused leave on termination.
The Formula
Entitlement: 30 calendar days/year (after 1 year) 6–12 months: 2 days per month Leave salary: (Monthly package ÷ 30) × leave days Encashment: (Basic salary ÷ 30) × unused days
Same employee encashing 10 unused days on termination: Daily basic: AED 10,000 ÷ 30 = AED 333.33/day Encashment: AED 333.33 × 10 = AED 3,333
Key distinction: Leave salary during service = full package. Leave encashment on termination = basic salary only. Leave is counted in calendar days including weekends.
Federal Decree-Law No. 33 of 2021
UAE Annual Leave Calculator 2025
Calculate your UAE annual leave entitlement, accrued balance, leave salary, and leave encashment value. Based on Federal Decree-Law No. 33 of 2021 — 30 calendar days per year for UAE private sector employees after 1 year of service.
Basic + housing + transport (used for leave salary)
Leave Balance
0 days
Annual Entitlement
0 days
Per year of service
Accrued to Date
0 days
Based on service so far
Remaining Balance
0 days
After deducting used days
Calculation Breakdown
Need help with leave management or UAE Labour Law compliance? RFS HR Consultancy can assist.
UAE private sector employees are entitled to 30 calendar days paid annual leave per year after 1 year of service, under Federal Decree-Law No. 33 of 2021. Employees from 6–12 months service get 2 days per month.
Is UAE annual leave in working days or calendar days?
Annual leave in the UAE is calculated in calendar days including weekends. A 30-day entitlement includes Fridays and Saturdays. Public holidays falling during leave are not replaced.
What is the difference between leave salary and leave encashment?
Leave salary (going on leave during employment) is calculated on basic salary plus fixed allowances — full package. Leave encashment on termination is calculated on basic salary only, not including allowances.
Can employers forfeit annual leave in UAE?
No. Employers cannot forfeit accrued annual leave. Unused leave must be paid in cash on termination. Employers cannot prevent employees from using leave for more than 2 years — after that it must be compensated.
How is annual leave calculated for part-time employees?
Part-time employees in UAE get pro-rated annual leave based on actual working hours. An employee working 50% of full-time hours gets 15 calendar days per year (50% of 30).
RFS HR NEWSLETTER
Keep yourself updated with our well research newsletters and articles and make a well informed decision whether you are searching for a new job, build a team, or to grow ur business. Subscribe now!
