UAE Annual Leave Salary & Encashment Calculator
Calculate statutory annual leave pay and terminal separation encashments under UAE Federal Decree-Law No. 33 of 2021. Accurately distinguishes between Article 29(8) full wage vacation disbursements (basic + allowances) and Article 29(9) end-of-service basic wage cash settlements.
Wage Particulars & Leave Days
Microsecond Client-SideStatutory Leave Payment Overview
MOHRE 2026 CertifiedUAE Annual Leave & Encashment Benchmark Matrix (2026)
Comparison between active vacation advance (gross wage) and end-of-service encashment (basic wage) across salary grades.
| Job Grade / Tier | Basic Salary | Allowances | Gross Wage | 30d Vacation Pay (Art. 29(8)) | 30d Separation Encashment (Art. 29(9)) | Difference |
|---|---|---|---|---|---|---|
| Junior Associate | 4,000 AED | 2,000 AED | 6,000 AED | 6,000 AED | 4,000 AED | 2,000 AED (Allowances) |
| Professional Staff | 8,500 AED | 4,000 AED | 12,500 AED | 12,500 AED | 8,500 AED | 4,000 AED (Allowances) |
| Senior Engineer | 15,000 AED | 7,500 AED | 22,500 AED | 22,500 AED | 15,000 AED | 7,500 AED (Allowances) |
| Director / C-Suite | 32,000 AED | 16,000 AED | 48,000 AED | 48,000 AED | 32,000 AED | 16,000 AED (Allowances) |
Legal Governance: Annual Leave Under Federal Decree-Law No. 33/2021
30 Calendar Days Statutory Entitlement
Every private-sector worker is entitled to thirty (30) calendar days of paid annual leave for each year of service after completing one full year. If service is between six months and one year, the employee accrues two (2) days per month.
Full Wage for Active Vacation
When a worker takes their scheduled annual vacation during active employment, the employer must disburse their full wage (basic wage plus regular housing and transportation allowances) before the employee departs on leave.
Basic Wage for Terminal Encashment
Upon leaving employment, the worker is entitled to cash compensation for accrued unused leave days. Under Article 29 Clause 9, this separation cash encashment is strictly computed based on the employee's basic wage divided by 30 days.
Repatriation Air Ticket Obligation
The employer must bear the expense of repatriating the expatriate worker to their country of origin or recruitment upon termination of employment, unless the worker transfers to another UAE employer under MOHRE regulations.
Statutory Mathematical Formulation
Step-by-step algorithms codified under UAE MOHRE executive regulations and corporate payroll standards.
Statutory Leave Accrual Progression
If Months < 6: Accrual = 0 Days If 6 ≤ Months ≤ 12: Accrual = (Months - 6) × 2.0 Days If Months > 12: Accrual = 12 Days (Year 1) + ((Months - 12) × 2.5 Days) Full annual leave entitlement of 30 days per year equals exactly 2.5 calendar days per month.
Active Vacation Advance Payout (Article 29(8))
Daily Comprehensive Wage = (Basic Salary + Allowances) / 30.0 Days Vacation Pay = Daily Comprehensive Wage × Leave Days Taken Guarantees full wage disbursement including regular fixed allowances while the worker is enjoying vacation.
Terminal Separation Encashment (Article 29(9))
Daily Basic Wage = Monthly Basic Salary / 30.0 Days Terminal Leave Encashment = Daily Basic Wage × Accrued Unused Leave Days Severance encashment upon resignation or termination excludes allowances under Article 29(9).
Final WPS Net Disbursed Payout
Net Disbursed Amount = Computed Leave Benefit (0% Personal Income Tax) Because the UAE levies no personal income tax, the employee receives the full calculated amount without deductions.
Frequently Asked Questions: UAE Annual Leave & Encashment Laws
How many days of paid annual leave are employees entitled to in the UAE?
Under Article 29(1) of UAE Federal Decree-Law No. 33 of 2021, an employee is entitled to 30 calendar days of paid annual leave for each year of service after completing one continuous year. For service between 6 months and 1 year, the employee accrues leave at the rate of two (2) days for each month.
Is UAE annual leave salary calculated on basic salary or full comprehensive wage?
There is a critical legal distinction: When taking active annual leave during employment (Article 29(8)), the worker is entitled to their 'full wage' (basic salary plus fixed monthly housing and transport allowances). However, when unused leave is encashed in cash at the end of service upon contract separation (Article 29(9)), the statutory encashment is calculated on the 'basic wage' only.
Can an employer in the UAE force an employee to forfeit unused annual leave?
No. Under Article 29, untaken leave cannot be unilaterally forfeited. The worker may carry forward up to half of their annual leave entitlement to the following year with employer agreement, or receive cash allowance in lieu of leave based on their basic wage.
How is the daily wage divisor calculated for annual leave in the UAE?
Under standard UAE MOHRE regulations, the monthly salary is divided by 30 calendar days to establish the statutory daily compensation rate for annual leave days.
Are annual leave payments subject to personal income tax in the UAE?
No. The UAE levies 0% personal income tax on employment wages, leave allowances, and terminal separation encashments. The employee receives 100% of the computed net figure.
📊 UAE Statutory & Financial Breakdown Matrix (FTA, MOHRE & GPSSA)
| Statutory Component / Legal Deduction Item | Calculated Amount (AED / د.إ) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 AED |