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UAE leave encashment calculator

When an employee leaves in the UAE, unused annual leave is paid in cash. Work out the days earned in the final leave year, add any carried-over balance, and see what it is worth at the basic wage.

Basic only. Allowances are not used for leave pay-outs.

Unused days from previous leave years that the employer agreed to carry over.

Since the last work anniversary (or since joining in the first year).

Example: AED 9,000 basic, 3 years and 4 months’ service, 5 days carried over, 4 days taken this year.

Leave pay on exit

3,308.22 AED

Leave earned in the final leave year
10.03
Unused days to pay
11.03
Daily basic wage (basic ÷ 30)
300.00
Leave pay-out
3,308.22

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A guide, not legal or tax advice. Confirm figures with your accountant or lawyer before you rely on them.

Sources: Federal Decree-Law No. 33 of 2021, Article 29, and Cabinet Resolution No. 1 of 2022, Article 19, as published on u.ae and MoHRE. Checked 15 October 2026.

The rules behind it

  • Entitlement

    30 calendar days a year after the first year. In the first year, 2 days for each month of service once the employee has completed 6 months.

  • Part-years

    In the year the employee leaves, leave accrues pro rata for the part of the year worked.

  • Pay on exit

    Unused leave is paid on the basic wage: basic ÷ 30 for each day. Article 29 of Decree-Law 33 of 2021 and Article 19 of Cabinet Resolution 1 of 2022.

  • Carry-over

    Employees can carry leave forward with the employer’s agreement. Check your policy for any cap on carried-over days.

Related

Questions about leave encashment in the UAE

Still have a question?

Ask us directly
Is unused leave paid on basic or gross salary in the UAE?

On the basic salary. Cabinet Resolution 1 of 2022 says unused leave on exit is paid on the basic wage.

Is leave paid if the employee has worked less than six months?

Annual leave only starts to accrue after six months in the first year, so there is nothing to encash before then.

Does the employee get gratuity and leave pay?

Yes, they are separate. Gratuity is due after one year of service; unused leave is paid whatever the reason for leaving.

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