Dubai Marina towers at golden hour
Guide · HR and labour

Annual leave under UAE labour law: days, pay and payout

Under UAE labour law, a full-time private-sector employee gets at least 30 days of fully paid annual leave for each year of service, and 2 days for each month once service passes six months but is under a year. Your employer sets the dates and must give you at least one month's notice. Unused leave is paid out when your service ends, based on your basic salary.

Global Sky PRO teamUpdated 10 November 20265 min read

Key takeaways

  • Full-time employees get at least 30 days of fully paid annual leave for each year of service.
  • Between six months and one year of service, you earn 2 days of leave for each month.
  • Your employer sets leave dates around work needs and must tell you at least one month ahead.
  • Carrying leave forward needs your employer's approval and is capped at half of your annual leave.
  • Unused leave is paid out when your service ends, calculated on your basic salary.

How many days of annual leave you get

Article 29 of Federal Decree-Law No. 33 of 2021 sets these as minimums, so a contract can be more generous.

From Article 29 of Federal Decree-Law No. 33 of 2021 and Article 18 of its Executive Regulation, checked 10 November 2026.
Your serviceAnnual leave
More than six months, less than one year2 days for each month
One year or moreAt least 30 days a year, on full pay
Final part-year when your service endsLeave for the fraction of that year
Part-time workIn proportion to the hours you work, at least 5 working days a year

During probation, your employer may let you use leave from your balance. If you don't pass probation, you're still paid for the unused leave (Article 29(3)).

These rules cover private-sector employers. Article 3 excludes government employees, the armed forces, police and security, and domestic workers, who have a separate law. The DIFC and ADGM have their own employment laws. For the wider picture, read our guide to UAE labour law.

When you take leave and who sets the dates

  • 1. Use it in the year it's due. Article 29(4) says leave should be taken in the year you earn it.
  • 2. Your employer sets the dates. It schedules leave around work needs, by agreement with you or by rotating staff, and must tell you at least one month ahead.
  • 3. Carrying forward needs approval. You can move unused days into the next year with your employer's approval and under company rules (Article 29(5)). Executive Regulation Article 19(1) caps this at half of your annual leave.
  • 4. Two years is the limit. Your employer can't stop you using your leave for more than two years, unless you carried it forward or took a cash allowance under the rules (Article 29(8)).
  • 5. Holidays inside your leave count as leave. Official or agreed holidays during your annual leave count as part of it, unless your contract or company rules are more favourable (Article 29(7)).

Neither Article 29 nor the Executive Regulation sets a rule on splitting annual leave into parts. Executive Regulation Article 21(5) does let you combine annual leave with bereavement, parental and unpaid leave.

Leave pay and payment for unused leave

Article 29 gives annual leave on full pay and entitles you to your wage for the leave period. Article 1 defines two pay terms:

  • Wage: your basic wage plus the cash allowances and in-kind benefits in your contract or the law.
  • Basic wage: the wage in your contract, without allowances or in-kind benefits.

The law doesn't say leave pay must reach you before your leave starts, so check the timing in your contract or company policy.

When your service ends, you're paid for every unused leave day, however many (Article 29(9)). Executive Regulation Article 19(2) calculates this cash on your basic salary, and u.ae says leave earned in the final part-year is paid the same way. It's separate from your gratuity, which also uses your last basic wage.

If you agree to take cash instead of carrying leave forward, Executive Regulation Article 19(1) bases it on the wage you earn when the leave falls due; u.ae describes it as based on basic salary. The regulation is the legal text, so rely on it and your contract.

Worked example: paying out unused leave

You resign after 9 months without taking leave. Your contract pays a basic salary of AED 6,000 plus AED 3,000 in housing and transport allowances, so AED 9,000 a month.

Illustrative figures based on Article 29 and Executive Regulation Article 19(2), arithmetic checked 10 November 2026.
StepCalculationResult
Leave earned9 months × 2 days18 days
Daily basic wageAED 6,000 ÷ 30AED 200
Leave payout18 days × AED 200AED 3,600

How we derived the daily wage: the law gives no formula for a daily rate, so this example divides the monthly basic salary by 30, because Article 67 treats a month as 30 days. The allowances aren't included, because the regulation uses basic salary. Your employer's payroll method may differ, so check your final settlement. For the gratuity side, use our gratuity calculator for an estimate.

Unpaid leave, absence and public holidays

With your employer's approval, you can take unpaid leave. It doesn't count towards your service or pension contributions (Article 33), and unpaid absence is left out of gratuity service (Article 51(4)). If you don't return straight after your leave without a legitimate reason, you aren't paid for the days you're absent (Article 34).

Official holidays set by Cabinet resolution are paid (Article 28). If you work one, your employer gives you another rest day for each day worked, or pays your normal wage for that day plus at least 50% of your basic wage.

Under Cabinet Resolution No. 27 of 2024, u.ae lists the same holidays for the public and private sectors: New Year's Day (1 January), Eid Al Fitr, Arafah Day, Eid Al Adha, Hijri New Year, Prophet Mohammed's birthday and National Day (2 and 3 December). Islamic holidays follow the moon sighting, and a holiday that falls on a weekend or another holiday isn't moved.

Other leave types under UAE labour law

From Articles 30 to 32 of Federal Decree-Law No. 33 of 2021 and the u.ae types of leave page, checked 10 November 2026.
LeaveDaysPay
Sick leave (after probation)Up to 90 days a year15 days full pay, 30 days half pay, the rest unpaid
Maternity60 days, plus up to 45 days for related illness45 days full pay, 15 days half pay; extra days unpaid
Mother of a newborn who is sick or has a disability (after maternity leave)30 days, extendable by 30Full pay, then unpaid
Parental (mother or father)5 working days within 6 months of the birthPaid
Bereavement5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparentPaid
Study (after 2 years' service, enrolled at an institution approved in the UAE)Up to 10 working days a year to sit exams (the law says it 'may be granted')Not stated in the law; u.ae lists it as paid
National and reserve service (UAE nationals)Length of the servicePaid

Our sick leave guide covers the notice and medical report rules.

Global Sky PRO isn't a law firm. Our payroll and HR services team handles WPS payroll files, labour contracts on MOHRE and work permit paperwork for employers. If a leave payout is disputed, MOHRE handles complaints and decides claims up to AED 50,000, which either side can challenge in court; other disputes go to the courts. We help you prepare a labour complaint and its documents.

Sources

Official sources checked on 10 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.

FAQs

Questions about this topic

Short answers here. Your situation may differ, so ask us before you decide.

Still have a question?

An adviser replies during opening hours, Mon–Sat 10:00–21:00.

Ask on WhatsApp
How many days of annual leave do I get under UAE labour law?

At least 30 days on full pay for each year of service. If your service is more than six months but less than a year, you get 2 days for each month.

Source: UAE Legislation: Federal Decree-Law No. 33 of 2021

Can I take annual leave before completing one year?

Yes. Once your service passes six months, you get 2 days for each month of service, and your employer may let you use leave from your balance even during probation. If you don't pass probation, you're paid for the unused balance.

Source: UAE Legislation: Federal Decree-Law No. 33 of 2021

Who decides when I take my annual leave?

Your employer sets the dates around work needs, by agreement with you or by rotating staff. It must tell you the dates at least one month in advance.

Source: u.ae: Annual leave

Can I carry forward unused annual leave in the UAE?

Yes, with your employer's approval and under company rules. The Executive Regulation caps the carry-forward at half of your annual leave, or you can agree to take the cash equivalent instead.

Source: UAE Legislation: Executive Regulation of the labour law

Can my employer refuse to let me take annual leave?

Your employer can't stop you using leave you're entitled to for more than two years, unless you chose to carry it forward or take a cash allowance under the rules.

Source: u.ae: Annual leave

Is annual leave salary based on basic or gross salary?

While you're on leave, the law says you receive your wage, which it defines as basic wage plus contract allowances and in-kind benefits. When your service ends, unused leave is paid in cash on your basic salary.

Source: UAE Legislation: Executive Regulation of the labour law

How is unused annual leave paid when I resign or I'm terminated?

You're paid for all unused leave days, however many there are, plus leave earned for part of the final year, calculated on your basic salary.

Source: u.ae: Annual leave

Do public holidays during annual leave count as leave days?

Yes. Official or agreed holidays that fall during your annual leave count as part of it, unless your contract or company rules are more favourable.

Source: u.ae: Annual leave

What are the official public holidays for the private sector?

New Year's Day, Eid Al Fitr, Arafah Day and Eid Al Adha, Hijri New Year, Prophet Mohammed's birthday and National Day. The same list applies to the public and private sectors, and Islamic holidays follow the moon sighting.

Source: u.ae: Public holidays

What do I get if I work on a public holiday?

Your employer gives you another rest day for each holiday worked, or pays your normal wage for that day plus at least 50% of your basic wage.

Source: UAE Legislation: Federal Decree-Law No. 33 of 2021

Do part-time workers get annual leave?

Yes. Part-time workers earn leave in proportion to the hours they actually work, with a minimum of five working days a year.

Source: UAE Legislation: Executive Regulation of the labour law

Does unpaid leave count towards my service?

No. Unpaid leave isn't counted in your period of service or pension contributions, and unpaid absence days are left out of the service used for gratuity.

Source: UAE Legislation: Federal Decree-Law No. 33 of 2021

Get started

Want us to check your case?

Send a few details and we'll reply with the route, the documents and every fee involved.

Send your enquiry

Takes a minute. We reply with the next steps and every fee involved.