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.
| Your service | Annual leave |
|---|---|
| More than six months, less than one year | 2 days for each month |
| One year or more | At least 30 days a year, on full pay |
| Final part-year when your service ends | Leave for the fraction of that year |
| Part-time work | In 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.
| Step | Calculation | Result |
|---|---|---|
| Leave earned | 9 months × 2 days | 18 days |
| Daily basic wage | AED 6,000 ÷ 30 | AED 200 |
| Leave payout | 18 days × AED 200 | AED 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
| Leave | Days | Pay |
|---|---|---|
| Sick leave (after probation) | Up to 90 days a year | 15 days full pay, 30 days half pay, the rest unpaid |
| Maternity | 60 days, plus up to 45 days for related illness | 45 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 30 | Full pay, then unpaid |
| Parental (mother or father) | 5 working days within 6 months of the birth | Paid |
| Bereavement | 5 days for a spouse; 3 days for a parent, child, sibling, grandchild or grandparent | Paid |
| 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 service | Paid |
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
- UAE Legislation: Federal Decree-Law No. 33 of 2021 Regulating Labour Relations
- UAE Legislation: Cabinet Resolution No. 1 of 2022, Executive Regulation of the labour law
- u.ae: Annual leave in the private sector
- u.ae: Public holidays
- u.ae: Parental leave
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.