Annual Leave - 30 Days (UAE)
Under the UAE's Federal Decree-Law No. 33 of 2021, employees who complete one year of continuous service are entitled to 30 calendar days of fully paid annual leave, with pro-rated leave of two days per month for those with service between six months and one year.
- What Is the UAE's 30-Day Annual Leave Entitlement?
- Eligibility and Accrual Tiers
- Calculating Leave Pay
- Interaction with Public Holidays and Sick Leave
- Carryover and Encashment of UAE Annual Leave
- Free Zone Variations
- UAE Annual Leave Statistics [2026]
- Best Practices for UAE Employers
- Frequently Asked Questions About UAE Annual Leave
What Is the UAE's 30-Day Annual Leave Entitlement?
Key Takeaways
- ✓UAE employees with one year or more of continuous service receive 30 calendar days of paid annual leave per year under the 2021 Labour Law.
- ✓Employees with 6 months to 1 year of service are entitled to 2 days of leave per month worked.
- ✓Employees with less than 6 months of service have no statutory annual leave entitlement, though many employers grant it by policy.
- ✓Leave pay is calculated on basic salary only. Housing, transport, and other allowances are excluded from the leave salary calculation.
- ✓Public holidays and sick leave that fall during annual leave don't count against the 30-day entitlement.
The UAE's Federal Decree-Law No. 33 of 2021 (which replaced the older Federal Law No. 8 of 1980) sets out the annual leave framework for all private-sector employees in the country. The entitlement is generous by global standards: 30 calendar days of fully paid leave once an employee completes one year of service. That's 30 calendar days, not working days. Fridays, Saturdays, and any public holidays falling within the leave period are excluded from the count and extend the leave accordingly. This distinction confuses many HR teams new to the UAE. If an employee takes 30 days of annual leave and two public holidays fall within that period, the actual time away from work is 32 days. For the UAE's large expatriate workforce, annual leave carries particular significance. Many employees travel to their home countries during leave, which is why the law also provides for a one-time repatriation flight ticket (though this is typically covered in the employment contract rather than the statute). Employers operating in free zones (DIFC, ADGM, JAFZA) should check their specific zone regulations, which may have different or additional requirements.
Eligibility and Accrual Tiers
The UAE uses a tiered system based on length of service.
| Service Period | Annual Leave Entitlement | Accrual Method | Notes |
|---|---|---|---|
| Less than 6 months | No statutory entitlement | N/A | Many employers grant 1-2 days per month as company policy |
| 6 months to 1 year | 2 days per month | Monthly accrual | Pro-rated based on completed months of service |
| 1 year or more | 30 calendar days per year | Full entitlement, typically front-loaded annually | Public holidays and sick days within leave don't count |
| During probation (up to 6 months) | No statutory entitlement during probation itself | N/A | Leave accrues but may not be usable until probation ends, per employer policy |
Calculating Leave Pay
The UAE law specifies that annual leave pay is based on the employee's basic salary. This is a critical distinction.
Basic salary vs total package
UAE employment contracts typically split compensation into basic salary and allowances (housing, transport, utility, phone). Annual leave pay covers only the basic salary component. If an employee's total package is AED 15,000 per month but their basic salary is AED 7,500, leave pay is calculated on AED 7,500. This is why the basic-to-total salary ratio matters so much in the UAE. Employees often push for a higher basic salary proportion because it increases their leave pay, end-of-service gratuity, and other statutory entitlements.
Leave salary advance
Under Article 29(5), an employee is entitled to receive their leave salary before the start of the annual leave. The employer must pay the full leave period's basic salary in advance. Some employers pay it with the last regular salary before the leave starts. Others issue a separate advance payment. Getting this timing right matters because late payment of leave salary is a common complaint filed with MOHRE.
Interaction with Public Holidays and Sick Leave
The law provides explicit protections to ensure employees receive their full 30 days of actual rest.
Public holidays during annual leave
If a public holiday falls during an employee's annual leave, the holiday doesn't count against the 30-day entitlement. The UAE typically observes 10-14 public holidays per year (Eid Al Fitr, Eid Al Adha, Islamic New Year, Prophet's Birthday, National Day, New Year's Day, and Commemoration Day). If three public holidays fall within a 30-day leave period, the employee effectively receives 33 days away from work.
Sick leave during annual leave
If an employee falls ill during annual leave and provides a medical certificate, the sick days are treated as sick leave rather than annual leave. The annual leave balance is credited back for the certified sick days. This prevents employees from losing their rest entitlement due to illness.
Carryover and Encashment of UAE Annual Leave
The 2021 law doesn't explicitly address carryover caps, but it does provide clear rules on encashment at termination.
Carryover during employment
The law doesn't mandate a maximum carryover. However, Article 29(8) gives employers the right to set the timing of annual leave based on business requirements, and most UAE companies establish carryover caps through their internal leave policy (commonly 5-15 days). MOHRE guidance encourages employers to ensure employees take their leave within the year it's earned. Excessive accumulation of untaken leave can be raised in labor complaints if it suggests the employer prevented the employee from taking time off.
Encashment on termination
Under Article 29(9), an employee leaving the company is entitled to payment for any accrued but unused annual leave days. The payment is calculated based on the basic salary at the time of termination. This applies regardless of whether the employee resigned or was terminated. There's no cap on the number of days that can be cashed out. If an employee accumulated 60 days of unused leave over two years, the full 60 days must be paid at the basic daily rate.
Free Zone Variations
The UAE has over 40 free zones, each with its own employment regulations. While most align closely with the federal law, there are differences.
| Free Zone | Annual Leave Entitlement | Key Differences |
|---|---|---|
| DIFC (Dubai International Financial Centre) | 20 working days | Working days, not calendar days; more generous in practice for Monday-Friday workers |
| ADGM (Abu Dhabi Global Market) | 20 working days | Similar to DIFC; governed by ADGM Employment Regulations 2019 |
| JAFZA (Jebel Ali Free Zone) | 30 calendar days | Aligns with federal law |
| DMCC (Dubai Multi Commodities Centre) | 30 calendar days | Aligns with federal law |
| Sharjah free zones | 30 calendar days | Generally follow federal law provisions |
UAE Annual Leave Statistics [2026]
Data on leave usage and employer practices in the UAE labor market.
Best Practices for UAE Employers
Compliance with UAE annual leave law requires careful policy design and consistent application.
- Structure employment contracts with a clear basic salary figure. Ambiguous salary structures create disputes over leave pay, gratuity, and other statutory calculations.
- Pay leave salary before the leave starts. Late payment is one of the top complaint categories at MOHRE and can result in penalties.
- Track calendar days, not working days. The 30-day entitlement counts calendar days, and failing to exclude public holidays and weekends from the count leads to underpayment of leave.
- Set a clear carryover policy in your employee handbook. The law doesn't cap carryover, so without a company policy, employees can accumulate large balances that become cash liabilities at termination.
- Process leave encashment accurately at termination. Use the basic salary rate at termination date, not the average or the rate when the leave was accrued.
Frequently Asked Questions
Can an employer deny an annual leave request in the UAE?
Do Fridays and Saturdays count within the 30 calendar days?
Is annual leave available during the probation period?
Can an employee work during annual leave for extra pay?
What's the difference between annual leave and Hajj leave in the UAE?
Written by Adithyan RK