Work out exactly what you're owed for annual leave or leave encashment, in line with UAE Labour Law (Federal Decree-Law No. 33 of 2021). Enter your salary and dates below, the calculator also checks your accrued leave balance for you.
All fields marked required are needed to calculate your leave salary accurately.
| Service period | Entitlement |
|---|---|
| Less than 6 months | Not yet eligible |
| 6 – 12 months | 2 days / month |
| 1+ year | 30 days / year (≈2.5/month) |
Use the Leave Salary Calculator above to estimate your annual leave salary or payment for unused leave days. Enter your salary and leave details to get a quick calculation.
Leave salary is an important employee entitlement in the UAE. It may apply when an employee takes annual leave or has accrued leave days remaining when employment ends. UAE based EasyHR, an HR software tracks leaves and calculates leave salary automatically.
Leave salary is the payment an employee receives for their entitled annual leave. Employees generally receive the applicable salary while taking approved annual leave.
If an employee resigns, is terminated, or completes their employment with unused annual leave, they may be entitled to payment for the eligible unused leave balance. This payment is commonly known as leave encashment.
In general, leave salary eligibility may apply to:
Full-time employees who meet the applicable service requirements.
Employees taking approved annual leave.
Employees with accrued but unused annual leave.
Employees who resign or leave the company with an eligible unused leave balance.
Employees whose employment is terminated.
Part-time employees, based on their working arrangements and applicable rules.
Under the general UAE private-sector annual leave rules:
| Length of Service | General Annual Leave Entitlement |
|---|---|
| More than 6 months but less than 1 year | 2 days per month |
| 1 year or more | 30 calendar days per year |
Employment contracts or company policies may provide more favorable leave benefits.
For an estimated unused leave calculation at the end of employment, a commonly used formula is:
Leave Encashment = Basic Monthly Salary ÷ 30 × Unused Leave Days
Assume:
Basic monthly salary: AED 6,000
Unused annual leave: 10 days
Daily basic salary = AED 6,000 ÷ 30 = AED 200
Estimated leave encashment = AED 200 × 10 = AED 2,000
The actual amount may vary depending on the employee’s verified leave balance, salary structure, employment contract, service period, and applicable UAE employment rules.
| Situation | General Treatment |
|---|---|
| Taking annual leave | The employee receives the applicable leave salary during approved annual leave. |
| Resignation | Eligible unused annual leave may be included in the final settlement. |
| Termination | Accrued and unused leave should be reviewed as part of the final settlement. |
| Unused annual leave | The value depends on the verified leave balance and applicable salary basis. |
| Leave encashment | Cash payment for unused leave may apply when employment ends or under approved company arrangements. |
| Part-time employment | Leave entitlement may be calculated based on actual working hours and applicable regulations. |
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Here ae frequently asked questions about free WPS file generator tool.
For unused annual leave at the end of employment, an estimated calculation is:
Basic salary ÷ 30 × unused leave days
The final calculation should be based on verified employment and payroll records.
For accrued annual leave that remains unused when employment ends, the applicable UAE rules generally use the employee's basic wage. The salary treatment may differ when an employee is taking annual leave during active employment.
If you have an eligible accrued and unused leave balance, it may be included in your final settlement. Your employer should verify the leave balance and applicable calculation.
Eligible accrued and unused annual leave should be reviewed when employment ends, including in a termination situation.
Leave encashment during active employment may depend on company policy, employment terms, employer approval, and applicable regulations.
Employees with more than six months but less than one year of service generally receive two days of leave per month. Employees who complete one year of service are generally entitled to 30 calendar days of annual leave per year.
