Annual leave in the UAE: days, accrual and pay-out
The UAE Labour Law gives private-sector employees 30 days of paid annual leave a year, plus sick, maternity, parental and other leave. Here are the rules HR needs for a leave policy and the final settlement.
The short answer
30 calendar days of paid annual leave for each year of service. In the first year, the employee earns 2 days for each month of service once they complete 6 months. When someone leaves, leave earned and not taken is paid at the basic wage: basic ÷ 30 for each day.
Annual leave rules
- Part-time employees earn leave in proportion to their hours
- Official holidays and sick leave that fall during annual leave are counted as part of it unless the contract or policy says otherwise
- The employer can set the dates to suit the work, with at least a month’s notice to the employee
- Leave can be carried over to the next year with the employer’s agreement
- Leave pay during annual leave is the full wage; the pay-out on exit uses the basic wage
- The employer cannot stop an employee from using earned leave for more than two years
Other leave in the private sector
| Leave | Entitlement |
|---|---|
| Sick leave | Up to 90 days a year after probation: 15 days full pay, 30 days half pay, 45 days unpaid |
| Maternity leave | 60 days: 45 days full pay, then 15 days half pay; up to 45 more unpaid days for complications |
| Parental leave | 5 working days within 6 months of the birth, for either parent |
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent |
| Study leave | 10 working days a year for an employee with at least two years’ service studying at a UAE institution |
Leave on exit
On the last day, add the leave earned in the final leave year (pro rata) to any carried-over balance, take off days already used, and pay the rest at the basic wage. It is paid with the final settlement, within 14 days of the end of the contract.
What to put in your leave policy
- How to request leave and how far in advance
- Who approves, and what happens when two people want the same dates
- Whether and how much leave can be carried over
- How public holidays and sick days during leave are treated
- Evidence needed for sick, bereavement and study leave
Free tools for this
Sources
- UAE government portal (u.ae): leaves in the private sector
- Cabinet Resolution No. 1 of 2022 on the implementation of the Labour Law (MoHRE)
- Ministry of Human Resources and Emiratisation (MoHRE)
Rules change. Check the official text, or ask your accountant or lawyer, before you rely on a figure.
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