UAE Leave Salary Calculator
Updated November 2026 · Free · No sign-up
Calculate UAE leave salary — pay during your 30-day annual leave, encashment of unused days at exit, and the basic-vs-gross distinction that changes the numbers.
Quick answer: While ON leave you receive your full salary (basic + allowances). Unused leave at exit encashes at basic salary only: basic ÷ 30 × days. 15 unused days on AED 12,000 basic = AED 6,000, regardless of allowances.
The Two Different Calculations
| Situation | Rate | Base |
|---|---|---|
| Taking annual leave | Normal full salary | Basic + allowances (gross) |
| Encashing unused leave at end of service | Basic ÷ 30 per day | Basic only (Art. 29) — contracts may improve it |
Entitlement: 30 calendar days per year after one year of service (2 days/month for service between 6 months and a year). Carry-over and in-service encashment follow employer policy within the law — but exit encashment of the balance is a statutory right.
Worked Examples
Example 1 — exit encashment. AED 12,000 basic, 15 unused days: 12,000 ÷ 30 × 15 = AED 6,000 in the final settlement. On an 18,000 gross with 12,000 basic — allowances don't ride.
Example 2 — on-leave month. Taking 30 days: you're paid the normal AED 18,000 gross — leave months pay like work months (some employers pay leave salary in advance on request).
Example 3 — the two-year accumulation. Carried 45 days into an exit (policy allowed): all 45 encash = AED 18,000 — balances survive, but smart expats burn leave at gross value (travel paid at full salary) rather than bank it to cash out at basic. Taking leave is worth ~50% more than encashing it on a 60%-allowance package.
Leave Rules Cheat Sheet
- Accrual: 2 days/month after 6 months; 30 days/year after a year.
- Public holidays inside leave don't extend it unless policy says so (calendar-day system).
- Employer scheduling: employers may fix leave timing per operational needs with notice — but cannot deny accrual.
- Sick ≠ annual: separate 90-day sick entitlement (15 full / 30 half / 45 unpaid) — don't let certified sickness burn annual days.
The Basic-Salary Lever (Again)
Like gratuity, encashment keys off basic — a 40%-basic package quietly halves both. When negotiating UAE offers, the basic/allowance split moves: gratuity, leave encashment, notice-period compensation, and (often) air-ticket class — total comp equal, outcomes far apart. Ask for the split in writing before signing.
Common Disputes
"Use it or lose it" memos: valid prospectively within limits if genuinely communicated, but accrued statutory balances at termination still pay. Leave salary "advances" recovered later at gross while encashment pays basic: check the arithmetic. Forced leave during notice: permissible by agreement — but it trades gross-value days against basic-value encashment, usually in the employer's favor; price it with this page before agreeing.
Frequently Asked Questions
How is leave salary calculated in the UAE?
During leave: full normal salary (basic + allowances). Encashment of unused days at exit: basic ÷ 30 × days — basic only, per Article 29.
How many annual leave days in the UAE?
30 calendar days per year after one year of service; 2 days per month once past 6 months of service.
Is leave encashment on basic or gross?
Basic salary only for the statutory exit encashment — one of the big reasons the basic/allowance split in UAE contracts matters.
Is it better to take leave or encash it?
Take it — leave days pay at GROSS while encashment pays at basic; on allowance-heavy packages, using leave is worth 40-60% more per day.
Can my employer decide when I take leave?
Timing can be set per business needs with notice, but accrual and the exit encashment of balances are statutory rights.
Do public holidays extend my annual leave?
Not by default — the 30 days are calendar days; holidays inside them don't add days unless your contract improves on the law.
✓ Formula verified • Last updated: November 3, 2026