UAE Holiday Pay Calculator — Annual Leave, Unused Leave & Vacation Salary

Understanding how holiday pay, annual leave salary, vacation pay, and leave encashment are calculated in the UAE is essential for every employee — whether planning a holiday, negotiating a resignation, or verifying a final settlement. UAE Labour Law draws important distinctions between these scenarios that significantly affect the amount you receive. This guide covers all four modes of our UAE holiday pay calculator and the legal framework behind each. **Annual Leave Entitlement Under UAE Labour Law** Under Article 29 of Federal Decree-Law No. 33 of 2021, every private sector employee in the UAE is entitled to annual leave based on their length of service: - **First year (after completing 6 months)**: 2 days of leave per month of service. - **After one full year**: 30 calendar days per year, accruing at 2.5 days per month. - **Partial final year on termination**: Pro-rated based on months completed. Leave accrues in calendar days, not working days. Public holidays that fall within a period of approved annual leave are counted as part of the leave entitlement rather than added on top, unless the employment contract specifically provides otherwise. **Leave Salary vs. Leave Encashment: A Critical Distinction** One of the most frequently misunderstood aspects of UAE leave law is the difference between leave salary and leave encashment — and the salary base used for each. **Leave salary** (vacation salary) applies when an employee takes approved annual leave. In this case, the full salary — basic salary plus all allowances including housing, transport, and other regular allowances — is used. The formula is: **Leave Salary = (Gross Monthly Salary ÷ 30) × Leave Days** This amount is typically paid before the leave commences, as is standard practice in the UAE. **Leave encashment** applies when an employee resigns or is terminated with unused annual leave days remaining. In this case, only the basic salary is used — not the gross salary. The formula is: **Leave Encashment = (Basic Monthly Salary ÷ 30) × Unused Leave Days** This difference can be substantial. An employee with a gross salary of AED 15,000 but a basic salary of AED 8,000 would receive significantly less per day of encashment than they would for taken leave. Understanding this distinction before resigning or accepting a settlement offer is critical. **Unused Annual Leave Calculation UAE** To calculate your unused annual leave accurately, you need three figures: your total accrued leave days based on service length, the number of days actually taken, and any adjustments for unpaid leave periods. If you have worked for 2.5 years and taken 35 days of leave, your calculation would be: 2 full years × 30 days = 60 days, plus 6 months × 2.5 days = 15 days, totalling 75 accrued days, minus 35 taken = 40 unused days. Your encashment would be (basic salary ÷ 30) × 40. Our UAE annual leave calculator automates this calculation from your start and end dates, accounting for unpaid leave deductions and partial year pro-rating. **Annual Leave Pay Calculator: Taking Vacation** When you take approved annual leave, your employer is required to pay your full salary for the duration. The daily full rate is gross monthly salary divided by 30. For a 14-day holiday with a gross salary of AED 18,000, the leave salary would be AED 18,000 ÷ 30 × 14 = AED 8,400. Some employees prefer to take leave during their notice period as this typically entitles them to full salary (gross), whereas delaying and receiving encashment after the final day means only basic salary applies. **Leave Balance and Carry-Forward** Unused annual leave can be carried forward with employer consent, typically up to a maximum of approximately 15 days (half the annual entitlement). Employers may set policies requiring employees to take their leave within each service year. At the end of employment, regardless of carry-forward arrangements, all accrued and unused leave must be paid out in cash at the basic daily rate. Monitoring your leave balance throughout the year — using a UAE leave calculator — helps avoid losing days or disputes at the time of settlement. **Public Holiday Pay in UAE** Separate from annual leave, UAE employees are entitled to paid public holidays. If an employer requires an employee to work on an official public holiday, the employee is entitled to either: 1. **A compensatory day off** with full pay at a later date agreed upon by both parties. 2. **Additional pay** of 50% of the basic daily salary on top of the regular daily wage — effectively receiving 150% of the basic daily rate for that day. The formula for cash compensation when working on a public holiday is: **Public Holiday Cash Pay = Basic Monthly Salary ÷ 30 × 1.5** This is governed by Article 28 of Federal Decree-Law No. 33 of 2021 and applies to all private sector employees covered by UAE federal law. **Leave Salary Calculation After Resignation** Many employees search specifically for leave salary calculation in UAE after resignation. The answer is clear: upon resignation, all unused annual leave — including any pro-rata accrual in the final partial year — must be encashed using the basic salary daily rate. This forms part of the overall final settlement alongside end-of-service gratuity and any notice period pay. If you are calculating your total settlement package, our UAE leave settlement calculator provides a complete breakdown including gratuity. This holiday pay calculator focuses specifically on the leave and vacation pay components. **MOHRE Leave Calculator and Official Resources** MOHRE (Ministry of Human Resources and Emiratisation) provides guidance on leave salary calculation in UAE and has an official calculator available on the UAE government portal. The calculations in this tool are based on the same federal law provisions that MOHRE references. Always verify your specific entitlements with MOHRE or a qualified HR/legal professional, particularly if your contract includes enhanced leave benefits beyond the statutory minimum. **Disclaimer**: This calculator is provided for informational purposes only. All calculations are based on Federal Decree-Law No. 33 of 2021 as publicly available. Actual entitlements depend on your specific contract, MOHRE rulings, and individual circumstances. This does not constitute legal or financial advice.