Annual Leave in UAE: Entitlements, Encashment, and Rules
Understanding your annual leave entitlements is essential for maintaining work-life balance in the UAE. Here's a complete breakdown of what the law guarantees.
Annual Leave Entitlement
Under Federal Decree-Law No. 33 of 2021:
- Less than 6 months: No annual leave entitlement (but some employers grant it contractually)
- 6 months to 1 year: 2 days per month
- After 1 year: 30 calendar days per year
These are calendar days, not working days, so weekends count toward your 30 days.
Leave Salary
During annual leave, you're entitled to your full salary. Leave salary is calculated based on:
- Basic salary
- Fixed regular allowances (housing, transport, etc.)
- Excludes: overtime, commissions, one-time bonuses
Your employer must pay your leave salary before you go on leave.
Public Holidays
If a public holiday falls during your annual leave, that day is not counted as a leave day. UAE public holidays include:
- New Year's Day (January 1)
- Eid Al Fitr (3 days)
- Arafat Day and Eid Al Adha (3 days)
- Islamic New Year (1 day)
- Prophet's Birthday (1 day)
- Commemoration Day (December 1)
- National Day (December 2-3)
Carry Forward and Encashment
The law allows employers to set carry-forward policies. Generally:
- Unused leave can be carried forward to the next year
- Your employer cannot force you to forgo your leave
- You can carry forward leave with employer approval (Article 29(5)), or agree a cash allowance in lieu during employment; unused leave is always paid out when you leave
- On leaving, unused leave is paid at your basic salary (Article 29(9))
Sick Leave
Sick leave is separate from annual leave:
- Eligibility: After completing probation (unpaid sick leave may be granted during probation)
- Duration: Up to 90 days per year (consecutive or intermittent)
- Pay structure: First 15 days full pay, next 30 days half pay, remaining 45 days unpaid
- Requirement: Medical certificate from an approved UAE medical facility
- Important: Sick leave cannot be deducted from annual leave
Other Leave Types Summary
| Leave Type | Duration | Pay |
|---|---|---|
| Maternity | 60 days | 45 days full + 15 days half |
| Parental (either parent) | 5 working days within 6 months of birth | Full pay |
| Bereavement (spouse) | 5 days | Full pay |
| Bereavement (family) | 3 days | Full pay |
| Study leave | 10 working days/year | Full pay (after 2 years service) |
| Hajj leave | 30 days (once) | No pay |
Related Resources
Know Your Employment Rights
Calculate your end-of-service gratuity for free, explore your employment rights, or learn how to file a MOHRE complaint.
Legal Disclaimer
RentShield provides general information about UAE tenancy laws and is not a substitute for professional legal advice. For complex legal matters, consult a qualified UAE lawyer. Laws and regulations may change: always verify current requirements with official government sources.