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 (November 30)
- 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
- Leave encashment (paying you instead of giving time off) is only permitted on termination/resignation
- On termination, you're paid for all unused leave at your current salary rate
Sick Leave
Sick leave is separate from annual leave:
- Eligibility: After completing probation (or 3 months of service)
- 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 |
| Paternity | 5 working days | Full pay |
| Bereavement (spouse) | 5 days | Full pay |
| Bereavement (family) | 3 days | Full pay |
| Study leave | 10 days/year | No pay (after 2 years service) |
| Hajj leave | 30 days (once) | No pay |
Related Resources
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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.