How Is Unused Annual Leave Calculated in UAE 2026

Quick answer

In the UAE, unused annual leave is calculated by multiplying your daily basic salary by the number of remaining leave days. If you resign or are terminated, the employer must pay this amount within 14 days. Days are pro-rated from your contract anniversary and capped at two years’ accrual unless your contract states otherwise.

Who qualifies for annual leave in the UAE?

Under Federal Decree-Law No. 33 of 2021 (as amended) and Cabinet Decision No. 1 of 2022, any employee who has completed one year of service earns 30 calendar days of paid annual leave. Part-time, temporary, and domestic workers also qualify once they finish 12 months. If you leave before completing the year, you still receive pro-rated leave pay.

How annual leave days are counted

Annual leave is counted in calendar days, not working days. Weekends and public holidays falling within the leave period are included and paid. If you fall sick during annual leave, the days can be converted to sick leave with a medical certificate; those days are then restored to your annual leave balance.

Step-by-step: calculating unused annual leave pay

1. Find your daily basic salary: divide your monthly basic salary by 30.
2. Count the remaining leave days: subtract any days already taken from your 30-day entitlement, adjusting for pro-rata if you have worked less than 12 months.
3. Multiply the two numbers: unused days × daily basic salary = payout amount.
4. Check your contract for any cap on carry-over; most employers limit carry-over to a maximum of 60 days.

Example calculation

Ahmed earns AED 15,000 basic salary. Daily rate = 15,000 ÷ 30 = AED 500. He has 12 unused days. Payout = 12 × 500 = AED 6,000, paid within 14 days of his last working day.

Can unused leave be carried forward?

Yes. Article 52 allows employees to carry forward up to 60 days, but only if the employer agrees in writing. Any days above 60 must be used or compensated in cash. Always request written confirmation from HR before the new leave year starts.

Common mistakes expats make

• Assuming leave is based on gross salary instead of basic salary.
• Forgetting that public holidays inside the leave window are counted as leave days.
• Not keeping records of leave requests and approvals on the MOHRE app or company portal.
• Resigning without checking the contract’s notice period; early exit can reduce pro-rated leave.

What happens when you resign or your contract ends?

Employers must settle all outstanding leave pay within 14 days of the employment relationship ending. This amount appears on your final payslip and is transferred to your UAE bank account. If you are moving to a new employer inside the UAE, you can request to transfer up to 60 days of leave balance; both employers must agree in the MOHRE system.

Tips to protect your leave balance

• Plan leave around public holidays to stretch your days.
• Submit leave requests at least 30 days in advance to avoid rejection.
• Keep digital copies of every approved leave application and salary slip.
• If you suspect underpayment, raise a complaint via the MOHRE app before your final exit; cases are usually resolved within 14–21 days.

Key takeaway

Unused annual leave in the UAE is paid at your daily basic salary rate and must be settled within 14 days of contract end. Track your balance on the MOHRE app, request written carry-over approval, and confirm final figures before you leave to avoid losing money you have earned.