Leaving your job with unused annual leave? Those days convert to cash. This calculator shows your leave encashment under Article 29 of the UAE labour law – daily basic wage times unused days.
How is leave encashment calculated in the UAE?
How many leave days do I earn per year?
Can my employer force me to use leave instead of encashing it?
How leave encashment works
At end of service, unused annual leave is paid on your basic salary: basic ÷ 30 gives the daily wage, multiplied by your remaining leave days. Note the distinction: while employed and actually taking your leave, you receive full pay including allowances. The basic-only basis applies specifically to encashment when the employment ends. Encashment is capped at the balance of your last two years of leave.
Your leave entitlement
Full annual leave is 30 calendar days per year once you complete one year of service. In your first year, you accrue 2 days per month after your sixth month. Public holidays falling within leave don’t normally extend it unless your contract says otherwise, and your employer can schedule leave according to business needs with reasonable notice.
Part of your bigger settlement
Leave encashment usually arrives together with your gratuity and any pending salary in one final payment, due within 14 days of your exit. See the whole picture with the final settlement calculator.
Estimates for information only, not legal advice.