UAE Leave Pay Calculator — Annual, Maternity, Sick & Paternity 2024

Understanding how leave pay is calculated in the UAE is essential for employees planning a resignation, HR professionals processing final settlements, or anyone taking maternity, sick, or paternity leave. The UAE private sector leave framework is governed by Federal Decree-Law No. 33 of 2021, which replaced the previous Labour Law and introduced updated entitlements. This guide breaks down every leave type and the exact formulas used to calculate leave salary in the UAE. **Annual Leave Entitlement Under UAE Labour Law** Annual leave calculation in the UAE starts with your service period. If you have completed at least one year of continuous employment, you are entitled to 30 calendar days of annual leave per year under Article 29 of Federal Decree-Law No. 33 of 2021. For employees who have completed at least 6 months but less than 12 months, the entitlement is 2 working days for each month of service. Employees with less than 6 months of service are generally not entitled to statutory annual leave, though individual contracts may provide more generous terms. The daily rate for annual leave pay is always calculated as: **Basic Monthly Salary ÷ 30**. The UAE Labour Law standardises all leave pay calculations on a 30-day month regardless of the actual number of days in the calendar month. This is an important distinction for UAE holiday pay calculator purposes — do not divide by 31 or 28. **Annual Leave Encashment on Termination or Resignation** Leave salary calculation on termination is one of the most searched-for topics for employees exiting the UAE. When employment ends — whether through resignation, redundancy, or end of contract — any unused annual leave days must be paid out as a cash equivalent. Per Article 29(9) of UAE Labour Law, this encashment is calculated strictly on basic salary. Housing allowance, transport allowance, and other variable components are excluded from the termination leave pay calculation unless your employment contract explicitly includes them. The formula is: **Unused Leave Days × (Basic Monthly Salary ÷ 30)** For example, an employee with a basic salary of AED 8,000 and 12 unused leave days would receive: 12 × (8,000 ÷ 30) = AED 3,200 in leave encashment. Pro-ration applies for partial service years. If an employee has served 14 months and taken 5 leave days, they have accrued 30 days (year one) plus 4 days (2 months at 2 days/month) = 34 days total, minus 5 used = 29 unused days payable on exit. **Leave Salary While On Approved Annual Leave** The distinction between termination encashment and leave salary during employment is important. When an employee takes approved annual leave while still employed, many contracts and company policies include housing and transport allowances in the leave pay — because the full cost of living continues during leave. The federal law sets the floor (basic salary), while individual employment contracts and company policies may set a higher standard. Always check your specific contract terms. **Maternity Leave Pay Calculation in the UAE** UAE maternity leave is among the more generous in the GCC. Article 30 of Federal Decree-Law No. 33 of 2021 grants working mothers 60 days of maternity leave: the first 45 days at 100% of salary and the following 15 days at 50% of salary. There is no minimum service period required to qualify — even employees hired during pregnancy are entitled to maternity leave pay. The daily rate for maternity pay is based on total monthly salary (basic plus relevant fixed allowances) divided by 30. A mother earning AED 10,000 total monthly salary would receive: (45 × AED 333.33) + (15 × AED 166.67) = AED 15,000 + AED 2,500 = AED 17,500 in maternity pay. In addition to the 60 paid days, employees may take up to 45 extra unpaid days for illness connected to pregnancy or childbirth. Mothers of children diagnosed with illness or disability may also be entitled to additional paid leave as per recent amendments. **Sick Leave Pay: The Three-Tier Structure** Article 31 of UAE Labour Law creates a three-tier sick leave salary structure for private sector employees. After completing the probationary period, an employee can take up to 90 sick days per calendar year. The first 15 days are paid at 100% of basic salary. Days 16 to 45 (30 days) are paid at 50%. The final 45 days (days 46 to 90) are unpaid. A medical certificate from a MOHRE-approved or company-designated healthcare provider is mandatory for entitlement to sick pay. Sick leave pay uses basic salary as the base — not total gross salary. Employers cannot terminate an employee solely for being on sick leave during the first 90 days, providing important job protection alongside the financial entitlement. **Paternity Leave: 5 Paid Working Days** Article 32 of Federal Decree-Law No. 33 of 2021 grants male employees 5 fully paid working days of paternity leave. This must be taken within 6 months of the child's birth and applies to all private sector employees covered by federal UAE Labour Law. The pay is typically based on full salary. This relatively modest entitlement reflects the current UAE standard, though some employers offer enhanced paternity policies. **Free Zones, DIFC, and ADGM Variations** It is important to note that the federal UAE Labour Law applies to mainland private sector employment regulated by MOHRE. Employees working under DIFC (Dubai International Financial Centre) or ADGM (Abu Dhabi Global Market) regulations are governed by separate employment laws that may have different leave pay provisions. Employees in other free zones generally fall under federal law unless their free zone has a specific labour authority. Always verify your employment jurisdiction when using a UAE leave salary calculator. **Using This UAE Leave Pay Calculator** This tool is designed for both employees and HR professionals needing accurate leave pay calculations under UAE Labour Law 2021. Select your leave type, enter your salary and service details, and receive an instant itemised breakdown with legal references. The annual leave calculator supports both termination encashment and ongoing leave scenarios. All formulas are based on Federal Decree-Law No. 33 of 2021 provisions and are updated for 2026.