Leave Salary Calculator UAE 2026
Calculate your Leave Salary in UAE quickly and accurately as per latest UAE Labour Law.
Enter details and click Calculate
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- What is Leave Salary Calculator UAE?
- How to Use the Leave Salary Calculator UAE?
- Leave Salary Under UAE Labour Law
- Annual Leave Entitlement in UAE
- Types of Leave in UAE
- How Leave Salary is Calculated in UAE
- Leave Salary Calculation FormulaÂ
- Key Factors That Affect Leave Salary Calculation
- Special Leave Salary Situations in UAE
- Leave Salary Calculation for Unused Leave
- Leave Salary Calculation at End of Service
- Unused Annual Leave EncashmentÂ
- Leave Salary for Part Time EmployeesÂ
- Leave Salary for Part Time Employ
- Leave Salary Calculation in Case of Termination
- Public Holidays and Sick Leave During Annual Leave
- Rules for Using and Carrying Forward Annual Leave
- Leave Salary vs End of Service Benefits
- Common Mistakes in Leave Salary Calculation
- Frequently Asked Questions
- Final Words
Leave salary in the UAE is the payment an employee gets while on approved annaual leave from work. According to UAE Labour Law, employees receive full salary as compensation during this leave period after completing the required service with their employer. This keeps their income steady so they can rest without financial worry.
The main purpose of leave salary is to support employee rights under UAE labour regulations. It helps protect employee benefits and promotes a good work life balance. Employees get at least 30 calendar days of paid annual leave after one year of service, or 2 days per month after six months service. In most cases, leave salary uses the full salary, but only if the employment contract or company policy allows it.
What is Leave Salary Calculator UAE?
A Leave Salary Calculator UAE is an online tool that helps employees and employers quickly find the pay or compensation for annual leave taken or unused leave paid at termination or exit. It follows UAE Labour Law rules under Federal Decree Law No. 33 of 2021 to keep the calculation correct and meet compliance standards. You put in details like basic salary, fixed cash allowances such as housing allowance and transport allowance, start date, service duration, and unused leave days, and it shows the exact leave salary amount.
The main purpose of this tool is to make leave entitlements clear and easy. When taking leave during employment, it includes basic salary plus allowances. For encashment at exit or termination, it uses only basic salary. The accrual basis works like this: no leave before 6 months of service, then 2 days per month from 6 to 12 months, and 30 days per year after one full year of service. This makes things fair for everyone in the UAE.
How to Use the Leave Salary Calculator UAE?
Using a Leave Salary Calculator UAE is simple and helps you quickly estimate your leave salary based on UAE labour rules. Follow these easy steps:
Step 1: Enter Your Basic Salary
Enter your monthly basic salary in AED. This is the main amount used for leave salary calculation.
Step 2: Add Fixed Cash Allowances (Optional)
If you receive fixed monthly allowances, enter them here. Some companies include allowances in leave salary calculations.
Step 3: Select Employment Start Date
Choose the date when you started your job. This helps calculate your total service period.
Step 4: Select Calculation / Exit Date
Enter the date for calculation or your leaving date. This is used to determine your total working duration.
Step 5: Enter Total Leave Days
Add the number of leave days you want to calculate, whether planned or unused.
Step 6: Enter Leave Already Taken
If you have already used some leave days, enter them here. The calculator will automatically adjust your remaining leave balance.
Step 7: Click the Calculate Button
Click on the “Calculate Leave Pay” button. The tool will instantly calculate your leave salary based on UAE labour law.
Step 8: Check Your Result
Your estimated leave salary amount will be displayed on the screen.
Leave Salary Under UAE Labour Law
Leave salary under this Law means the full pay or remuneration an employee gets during annual leave. According to Article 29, employees are entitled to paid annual leave after service with an employer. The leave entitlement starts after 6 months: 2 days per month from 6 to 12 months, and 30 calendar days per year after one full year. Payment calculation includes basic salary plus allowances during employment, but only basic salary for unused leave at termination.
Leave balance can be carried forward with employer consent or approval, or the employee can get cash allowance or compensation for unused leave. Public holidays that fall during leave are not deducted from the annual leave balance. For part-time workers or worker, leave is based on actual working hours as stated in the employment contract or contract. If an employee works during leave (overtime), they get extra pay or more leave days. The notice period starts only after return from leave unless both sides agree in writing. These rules make leave salary calculations important in the UAE for employees, employers, and workers to stay fair.
Annual Leave Entitlement in UAE
Annual leave entitlement in the UAE is the number of paid leave days an employee can legally take each year under UAE Law. In the private sector, employees get this annual leave after completing a certain period of service. After one full year of service in the company, the standard entitlement is 30 calendar days of paid annual leave. This leave lets employees take time off from work while still getting their salary, which helps them rest and handle work responsibilities better.
For employees who have worked more than six months but less than one year, annual leave is given on a proportional basis usually at least two days per month worked. If service is less than six months, there is normally no minimum leave under labour law rules, though some companies or company policies may offer it.
Watch this YouTube video for a clear and easy explanation of Annual Leave.
Types of Leave in UAE
Leaves in the UAE fall into paid leave and unpaid leave categories . Here is a simple breakdown of the main types of leave that workers and employees can use, with details on eligibility criteria, pay, and rules:
- Annual Leave : Paid leave of 30 days per year after one year of service: 2 days per month between 6 months and 1 year.
- Sick Leave : Up to 90 days per year: first 15 days full pay, next 30 days half pay, remaining 45 days unpaid leave.
- Maternity Leave : 60 calendar days for mothers: 45 days full pay, 15 days half pay; extra unpaid leave (up to 45 days) for complications; additional 30 days paid leave plus 30-day extension option without pay if baby or child has health issues or disability.
- Parental Leave : 5 days full pay for both mothers and fathers within 6 months of child’s birth or childbirth, to help with bonding and caring for the newborn.
- Breastfeeding Breaks : Extra paid breaks (1–2 hours daily) for women until 6 months after childbirth to support breastfeeding.
- Bereavement Leave : Paid leave for death, loss, or passing of a family member: 5 days for spouse, child, or parent; 3 days for sibling, grandparent, or grandchild.
- Study Leave : 10 working days paid leave per year if eligibility criteria met (enrolled in UAE institutions with 2+ years service).
- Hajj or Pilgrimage : Up to 30 days unpaid leave once in the employment period to perform Hajj.
- National Service Leave : Unpaid leave for national service unless the employer sets different rules.
These provision and types of leave help employees balance work and family needs while following the law.
How Leave Salary is Calculated in UAE?
Leave salary in the UAE is calculated based on the employee’s basic monthly salary and the number of leave days taken. According to Law, the calculation usually does not include additional allowances such as housing, transportation, or bonuses unless stated in the employment contract.
To calculate leave salary, the employee’s basic monthly salary is first converted into a daily salary. This is done by dividing the basic monthly salary by 30 days, which represents the standard number of days in a month for salary calculations.
After finding the daily salary, it is multiplied by the total number of approved leave days. The final result gives the amount of leave salary the employee will receive for the leave period.This calculation method helps employers and employees clearly understand how leave payments are determined and ensures that the leave salary follows the rules set under UAE labour regulations.
UAE employees can quickly check their end-of-service benefits using our free Gratuity Calculator.
Leave Salary Calculation Formula
Formula:
Leave Salary = (Basic Monthly Salary Ă· 30) Ă— Number of Leave Days
Example:
If an employee has a basic monthly salary of AED 6,000 and takes 10 days of leave:
- Daily Salary = 6,000 Ă· 30 = AED 200
- Leave Salary = 200 Ă— 10 = AED 2,000
So, the employee will receive AED 2,000 as leave salary for 10 days of leave.
Key Factors That Affect Leave Salary Calculation
- Basic Salary
The employee’s basic monthly salary is the main factor used to calculate leave salary. A higher basic salary results in a higher leave salary amount. - Number of Leave Days
The total number of approved leave days directly affects the final leave salary. More leave days will increase the total leave payment. - Employment Contract Terms
Some employment contracts may include specific rules about leave salary or allowances. These terms can affect how the leave payment is calculated. - Company Policy
- Different Companies may have internal policies that influence leave calculations, such as how leave days are approved or carried forward.
- Unused Leave Balance
If an employee has unused annual leave, the remaining days may be converted into payment, which can affect the total leave salary amount. - Length of Service
The time an employee has worked in the company can determine how many leave days they are entitled to, which can impact the leave salary calculation.
Special Leave Salary Situations in UAE
1. Leave Salary Calculation for Unused LeaveÂ
In the UAE, employees may sometimes have annual leave days that they did not use during their employment period. These remaining leave days are usually compensated by the employer. The payment is based on the employee’s basic salary and the number of unused leave days.
Employers review the employee’s leave balance to determine how many leave days are still available. The payment is then calculated according to standard leave salary rules so that employees receive compensation for the leave they earned but could not use.
2. Leave Salary Calculation at End of Service
When an employee’s employment ends in the UAE the employer must review the employee’s leave balance as part of the final settlement. If the employee still has remaining annual leave days, the employer must provide payment for those days.
This payment is included in the end of service settlement, which may also include pending salary, gratuity, or other benefits. The purpose is to ensure the employee receives all financial rights before leaving the company.
3. Unused Annual Leave EncashmentÂ
Unused annual leave encashment refers to converting remaining leave days into cash payment. This usually happens when an employee cannot take their leave due to work requirements or when their contract ends.
Encashment allows employees to receive the value of their unused leave instead of taking time off. The payment is normally based on the employee’s basic wage and the total number of leave days that were not used.
4. Leave Salary for Part Time EmployeesÂ
Part-time employees in the UAE may also receive leave benefits depending on their employment contract and working arrangement. Since part time employees work fewer hours than full time employees, their leave entitlement is usually calculated proportionally.
The leave salary for part time employees is generally based on their agreed salary, working hours, and approved leave days. This ensures that even employees with flexible work schedules receive fair leave compensation.
5. Leave Salary Calculation in Case of Resignation
If an employee resigns from a job in the UAE, the employer must review the employee’s remaining annual leave balance. Any leave days that were not used during the employment period must be paid to the employee.
This payment is usually included in the employee’s final settlement after resignation. It ensures that the employee receives the financial value of the leave they earned during their service.
6. Leave Salary Calculation in Case of Termination
When an employee’s job is terminated, the employer is still required to settle all outstanding employee benefits, including unused annual leave. The remaining leave balance is reviewed to determine whether the employee is owed leave salary.
The payment for unused leave is then added to the employee’s final settlement along with other dues. This rule helps protect employee rights and ensures fair compensation even when employment ends due to termination.
Public Holidays and Sick Leave During Annual Leave
In the UAE, if a public holiday falls during an employee’s annual leave, the public holiday is usually counted as part of the leave period. This means the employee normally does not receive an extra leave day for that public holiday unless the company’s internal policy states otherwise.
If an employee becomes sick during their annual leave, they may be able to convert those days into sick leave if they provide a valid medical certificate. In such cases, the approved sick leave days may be recorded separately according to company policy and labour regulations.
Rules for Using and Carrying Forward Annual Leave
In the UAE, employees are expected to use their annual leave within the period agreed upon with their employer. The timing of the leave is usually arranged between the employee and the company, taking into account work requirements and business needs.
In some cases, employees may carry forward unused annual leave to the next year if it is approved by the employer. However, companies may have specific policies about how long leave can be carried forward. These rules help ensure that employees take regular breaks while also allowing flexibility when leave cannot be used within the same year.
Leave Salary vs End of Service Benefits
Feature | Leave Salary | End of Service Benefits |
Purpose | Payment for annual leave or unused leave days | Payment given when employment ends after completing the required service period |
When It Is Paid | During annual leave or when unused leave is compensated | When employment ends as part of the employee’s final settlement. |
Calculation Basis | Based on basic salary and number of leave days | Based on length of service and last basicsalary |
Relation | Connected to annual leave entitlement | Connected to total years worked in the company |
Included in Final Settlement | Yes, if leave days remain unused | Yes, it is a main part of the final settlement |
Common Mistakes in Leave Salary Calculation
- Including Allowances in the Calculation
One common mistake is including allowances such as housing or transportation in the calculation. In most cases, leave salary is calculated using the basic salary only. - Incorrect Number of Leave Days
Errors can occur when the total number of leave days is not calculated correctly, especially if the employee has taken partial leave during the year. - Using the Wrong Salary Period
Sometimes employers use outdated salary figures instead of the employee’s current basic salary, which can lead to incorrect leave payment. - Ignoring Unused Leave Balance
Some calculations do not properly consider the employee’s remaining leave days, which can result in underpayment. - Not Following Company Policy or Labour Rules
Failing to follow company policies or labour law guidelines can also lead to mistakes in the leave salary calculation process.
Frequently Asked Questions
 In most cases, leave salary in the UAE is calculated using the basic salary only. Allowances such as housing, transportation, or bonuses are usually not included unless the employment contract or company policy states otherwise.
Leave salary is normally paid before the employee starts their annual leave. This ensures that employees have their salary available while they are on leave.
No, employers cannot refuse to pay leave salary if the employee is entitled to annual leave under UAE Labour Law. Leave salary is considered an employee right and must be paid according to the law.
Yes, annual leave can sometimes be split into different periods if both the employer and employee agree. The final schedule usually depends on company policy and work requirements.
A Leave Salary Calculator helps employees quickly estimate their leave salary based on their salary and leave days. It simplifies the calculation process and helps avoid manual calculation errors.
Yes, domestic workers in the UAE can also use a leave salary calculator to estimate their leave pay. However, their leave entitlements may follow specific rules under UAE labour regulations for domestic workers.
Yes, many employees and HR professionals create a leave salary calculator in Excel using the standard formula based on basic salary and leave days.
For employees working under a limited contract in the UAE, leave salary is usually calculated based on the basic salary and approved leave days according to UAE Labour Law.
No, the prohibition period does not affect leave salary calculation. Employees are still entitled to receive their leave salary for approved or unused leave according to UAE Labour Law.
The prohibition period rules are generally based on UAE Labour Law, but the enforcement and conditions may vary depending on the employment situation and government regulations.
Final Words
Leave salary in the UAE is an important employee benefit that ensures workers receive payment during their annual leave or for unused leave days. Understanding the leave salary rules, calculation methods, and entitlements under UAE Labour Law helps employees and employers avoid mistakes and manage leave benefits properly. Using a Leave Salary Calculator UAE can also make the process faster and easier by quickly estimating the leave salary based on basic salary and leave days.