UAE annual leave at a glance
Article 29 of Federal Decree-Law No. 33 of 2021 sets three distinct phases for annual leave, and payroll teams often trip up on the jump…
Article 29 of Federal Decree-Law No. 33 of 2021 sets three distinct phases for annual leave, and payroll teams often trip up on the jump between them:
| Length of service | Leave accrual | Paid at |
|---|---|---|
| 0 – 6 months | None | – |
| 6 months – 1 year | 2 days per month served (from month 7) | Full wage if taken during employment |
| 1+ years (per completed year) | 30 days per completed year | Full wage if taken; basic only if cashed out at end of service |
A worker who resigns at, say, 9 months of service is entitled to 6 days (2 days × 3 months since month 6), not a simple pro-rata slice of 30 days. This is a known feature of the law, not a calculation error.
FAQ
How many days of annual leave am I entitled to in the UAE?
Under Article 29 of Federal Decree-Law No. 33 of 2021, a full-time private-sector employee earns 30 calendar days of paid annual leave for each completed year of service. An employee with more than 6 months but less than 1 year of continuous service earns leave at 2 calendar days for each month served beyond the sixth month. No annual leave accrues during the first 6 months of employment.
How is leave salary calculated for leave taken during employment?
Leave taken while you are still employed is paid at your full wage, meaning basic salary plus allowances, using the formula (basic salary + allowances) / 30 x number of leave days. This differs from unused leave paid out at the end of service, which uses basic salary only.
How is unused annual leave paid out when employment ends?
On termination or resignation, any unused annual leave days are paid using the basic salary only, not total wage, with the formula basic salary / 30 x number of unused leave days. Allowances such as housing or transport are not included in this end-of-service calculation.
Can I carry unused annual leave forward to the next year?
Yes, within limits. Article 19 of Cabinet Resolution No. 1 of 2022 allows an employee to carry forward no more than half of their annual leave entitlement to the following year, or agree with the employer on a cash allowance instead. Separately, Article 29 of the Decree-Law says an employer may not prevent an employee from taking accrued leave for more than two consecutive years.
Do part-time employees get annual leave in the UAE?
Yes. Under Article 18 of Cabinet Resolution No. 1 of 2022, a part-time employee's annual leave is calculated proportionally: total working hours are converted into working days and divided by the number of working days in the year, then multiplied by the standard leave entitlement, with a minimum of 5 working days per year.
What happens if a public holiday falls during my annual leave?
Under the default rule, a public holiday that falls within a period of annual leave is generally treated as part of that leave rather than added as an extra day, unless your employment contract or your employer's policy provides more favourable terms. Check your contract and HR policy for how your employer handles this.
When does annual leave start accruing for a new employee?
No annual leave accrues during an employee's first 6 months of service. From the start of the 7th month until the employee completes 1 year, leave accrues at 2 calendar days for each month served. After a full year of service, the employee is entitled to the full 30 days for that completed year, and accrual for any additional partial year typically continues at 2.5 days per month (30 divided by 12).
Is annual leave paid at basic salary or full salary in the UAE?
It depends on when it is paid. Leave taken during active employment is paid at full wage, basic salary plus allowances. Leave that remains unused and is cashed out at the end of employment is calculated on basic salary only, excluding allowances such as housing or transport, unless a more favourable contract term applies.