Annual leave is one of the most common things missed in a UAE final settlement. Here is how it builds up and how it is paid.
How much leave you earn
- After one year of service: 30 calendar days a year.
- Between six months and one year: 2 days for each month worked.
- Under six months: no statutory paid leave yet, though many employers allow some.
Pay while you are on leave
When you take annual leave during your employment, you are paid your wage for those days as set out in your contract.
Pay for unused leave when you leave
When your job ends, any leave you have earned but not taken must be paid. The law says this payment is calculated on basic salary: basic ÷ 30 × unused days.
For a basic salary of AED 6,000 and 15 unused days, that is AED 200 × 15 = AED 3,000.
Carrying leave forward
Your employer can let you carry unused leave into the next year, usually up to half of the yearly entitlement. Whatever is left at the end must be paid, whatever the reason your job ends.
Want the exact figure for your case?
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