UAE annual leave entitlement has not been reduced since Federal Decree-Law No. 33 of 2021 took effect in February 2022 — full-time private sector employees still get 30 calendar days per year after completing 12 months of service, or 2 days per month during the 6-to-12-month window. What’s genuinely changed since then is enforcement: MOHRE’s role in resolving leave disputes has strengthened through 2024–2025 amendments, not the entitlement itself.
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UAE Annual Leave Entitlement, By Service Length
Annual leave accrues at two different rates depending on how long you’ve worked, both counted in calendar days, not working days.
| Service Length | Entitlement |
|---|---|
| Under 6 months | No statutory paid leave yet (accruing, not payable) |
| 6 months to 1 year | 2 calendar days per month |
| 1+ year completed | 30 calendar days per year |
Because leave is counted in calendar days, weekends fall inside your leave count — a 30-day entitlement includes weekends within it, unless your employer specifically offers a more generous policy.
Leave Salary Calculation — The Actual Formula
Leave salary is what you’re paid while on leave, calculated differently from what you’re owed if you leave the job with unused days remaining.
While employed and taking leave:
Daily leave salary = (basic salary + contractually-included allowances) ÷ 30
Leave pay = daily leave salary × days taken
On termination, for unused leave:
Unused leave payout = (basic salary ÷ 30) × unused days
The termination formula uses basic salary only — no allowances included, unlike the in-employment calculation, which can include housing or transport allowance if your contract explicitly says so. This distinction is a frequent source of underpayment disputes. For a full breakdown of the encashment-specific rules, see our compensation for unused annual leave guide.
Pro tip: Get your leave balance confirmed in writing from HR before your last working day — the accrued-days figure is the single most disputed number in final settlements, and a written record from before termination is your strongest evidence if the final payout doesn’t match.
Carry Forward — Capped at Half, Not Unlimited
You can carry forward up to half your annual leave to the following year, or agree with your employer to cash out the carried-forward portion instead, based on your wage at the time it becomes due. There’s no automatic right to demand encashment during active employment year after year — this only applies to the carry-forward portion, by agreement.
Your employer cannot block you from using accrued leave for more than 2 years. Systematic leave denial beyond that window, without an agreed encashment arrangement, is a breach of the employer’s statutory obligation — not just a scheduling inconvenience.
Part-Time and Probation — Different Rules Apply
Part-time employees get a minimum of 5 working days per year, calculated proportionally by comparing their actual hours worked to a full-time schedule, then applying that ratio to the standard 30-day entitlement. Any fraction of a leave day is rounded up to a full day, never down.
During probation, you’re accruing leave but can’t take paid leave until you pass 6 months of service — even if your contract still labels that period as probation once the threshold is crossed. If employment ends during or right after probation, any leave accrued past the 6-month mark is still owed and payable.
This entire framework applies to mainland and most free zones — not DIFC or ADGM. Those two financial free zones run their own separate employment law with different leave structures entirely; if your employer is registered there, the federal rules in this article don’t apply to you directly.
Frequently Asked Questions
Has UAE annual leave entitlement been reduced recently?
No. The 30-day annual entitlement under Article 29 of Federal Decree-Law No. 33 of 2021 has not changed since it took effect in 2022. Amendments since then have focused on enforcement and dispute-resolution procedure through MOHRE, not on reducing the leave days themselves.
What is the leave salary rule in the UAE?
Leave salary while employed is calculated as (basic salary plus any contractually-included allowances) divided by 30, multiplied by the number of leave days taken. On termination, unused leave uses basic salary only, with no allowances included — a different formula from in-employment leave pay.
Can my employer refuse to let me take annual leave?
Not indefinitely. While employers can schedule leave dates based on business needs with at least 1 month’s notice, they cannot prevent an employee from using accrued leave for more than 2 years without an agreed carry-forward or encashment arrangement.
Does UAE labour law annual leave apply to free zone employees?
Yes, for most free zones that operate under the federal labour law. It does not apply to DIFC or ADGM, which have their own separate employment legislation with different annual leave rules entirely.
Last verified: September 2026 Reviewed by: UAE Content Team Source: Federal Decree-Law No. 33 of 2021, Article 29; Cabinet Resolution No. 1 of 2022 — Ministry of Human Resources and Emiratisation (MOHRE)
Not legal advice. For disputes or complex cases involving free zones or termination, consult MOHRE directly or a qualified UAE employment lawyer.
