This Annual Leave Rules Explained guide covers how paid annual leave works for private-sector employees in the UAE: how much leave you earn, when you can take it, how it is paid, and what happens to leave you do not use. The rules come from the UAE Labour Law (Federal Decree-Law No. 33 of 2021) and apply to most mainland and free-zone employees.
Annual leave is one of the most valuable parts of your employment package, and misunderstandings about it are common — especially around accrual during probation, carrying leave into the next year, and cash compensation when a job ends. This guide answers all of it.
Quick Answer
In the UAE private sector, employees earn 30 calendar days of paid annual leave per year of service. During the first year, after completing six months of probation, you earn 2 days of leave per month worked. Employers choose when leave is taken in line with business needs, and on termination you are paid in cash for any accrued but unused annual leave.
Annual Leave Rules Explained: How Much Leave You Earn
The standard entitlement is simple:
- 30 calendar days per year for each year of completed service.
- Days are calendar days, not working days — so weekends falling inside your leave count toward the total.
- First year of service: after completing 6 months (probation), you earn 2 days of paid leave for each month worked.
- If your employment ends before you complete a full year, you are owed a proportional amount: 2 days per month worked after the first 6 months.
If you want to work out your exact number, How to Calculate Annual Leave – Paxi walks through the maths for full years, partial years, and mid-year joiners.
When You Can Take Leave
Earning leave and taking leave are two different things. In practice:
- Your employer has the final say on the timing, considering work requirements, but must allow you to take your leave each year.
- Many companies ask you to plan leave early in the year and may block certain busy periods — this is normal.
- Leave during probation is usually not permitted, since you have not accrued it yet.
- If work demands mean you cannot take leave, the employer can defer it — but deferred leave must be usable later (see the carry-over rules below).
For the practical steps of making a request — drafting it, timing it, and following up — see the Paxi guides on requesting annual leave and the request process.
How Annual Leave Is Paid
Annual leave is paid at your full wage — the basic salary plus any allowances you normally receive, as defined in your contract. This is more generous than some other leave types, which may be paid at basic salary only.
- You are paid your normal wage for the leave period, usually in your regular payroll cycle.
- Some employers pay the leave salary before the leave starts; either way, you must receive it.
- Leave pay cannot be replaced with extra work — the days off and the pay both belong to you.
Carry-Over and Unused Leave
What happens to leave you do not take is one of the most asked-about topics in UAE employment:
- The law expects annual leave to be used within the year it is earned.
- Unused leave can be carried forward by agreement with your employer — get the agreement in writing.
- Employers cannot simply cancel accrued leave without compensation.
- On termination or resignation, you are entitled to cash in lieu of any accrued unused annual leave, calculated on your basic wage.
The full details — including how carry-over agreements work and how cash compensation is calculated — are in What Happens to Unused Annual Leave? – Paxi.
Annual Leave vs Other Leave Types
Annual leave is separate from other statutory leave. Mixing them up causes most of the confusion:
| Leave type | Key point |
|---|---|
| Annual leave | 30 calendar days per year, paid at full wage |
| Sick leave | Separate entitlement with its own rules and medical certificate requirements — see Sick Leave Rules Explained – Paxi |
| Maternity leave | 60 days (45 at full pay, 15 at half pay) under the Labour Law |
| Parental leave | 5 working days within 6 months of the child’s birth |
| Bereavement leave | 5 days for a spouse’s death; 3 days for a parent, child, sibling, grandchild or grandparent |
Falling ill during annual leave does not automatically convert it to sick leave unless your employer agrees — check your company policy.
Keeping Track of Your Leave
Disputes about leave almost always come down to records. Keep your own log:
- Note every leave request: dates applied for, dates approved, and who approved them.
- Keep copies of approval emails or HR system screenshots.
- Check your leave balance regularly through your company’s HR portal or by asking HR directly.
- Keep a simple spreadsheet log of requested, approved, and taken days — a dedicated leave-record guide with a tracking template is published on Paxi.
Your employment contract may also grant more than the legal minimum — and any extra days are enforceable, so read it carefully.
Special Cases
- Part-time employees: leave is calculated proportionally to hours worked relative to a full-time schedule.
- End of service: unused leave converts to cash compensation, and it is separate from your end-of-service gratuity.
- Remote workers: the same leave rules apply regardless of where you work from — see the Dubai remote work rules guide for flexible arrangements.
- Free zones: most follow the federal law, but zones with their own employment laws (like DIFC and ADGM) may differ — check your zone.
Leave Salary: What Goes Into the Payment
Annual leave is paid at your full wage — basic salary plus the regular allowances in your contract, such as housing and transport. This surprises some employees who expect basic-only pay. If your contract lists allowances separately, add them up to confirm the figure your employer uses. Overtime earnings are not part of leave pay: it is based on your contracted wage, not on what you happened to earn in a busy month. Keep a payslip from a normal month so you can compare it with your leave payment if something looks off.
Annual Leave During Notice Periods
Resigning or being made redundant does not wipe out your leave:
- You can ask to take accrued leave during your notice period, but your employer may instead prefer you to work the notice and be paid for the unused days — either way, the entitlement is settled.
- Employers cannot force you to take leave during the notice period to avoid paying it out, unless you agree.
- The final settlement should show the leave compensation as a separate line item, distinct from your end-of-service gratuity, which is calculated on basic wage.
- Confirm the exact number of unused days with HR before your last day, and keep the settlement statement with your other employment records.
Verifying on the Official Portal
The jobs and employment section of the UAE government portal summarises annual leave and other employee rights from the Labour Law. For disputes, MOHRE’s official website handles complaints and labour cases.
Frequently Asked Questions (FAQs)
Can my employer refuse my annual leave request?
Your employer can decide the timing of leave based on work needs, but cannot deny you your annual leave entitlement entirely. If leave is deferred, it must remain available to you later.
Do weekends count as annual leave days?
Yes. Annual leave is counted in calendar days, so a Friday–Saturday weekend inside your leave period uses up two of your leave days.
Can I encash annual leave while still employed?
Generally, no — the law provides cash in lieu on termination. Some employers allow encashment by agreement, but it is not a legal right during employment.
What happens to my leave if I resign?
You are entitled to payment for all accrued unused annual leave up to your last working day, calculated on your basic wage.
Can annual leave be split into parts?
Yes. Leave can be taken in one block or split across the year by agreement with your employer.
Does probation time count toward annual leave?
The first 6 months do not generate leave. From month 7 onward, you accrue 2 days per month until you complete a full year, after which the 30-day annual entitlement applies.
Can my employer cancel my approved leave?
Employers can recall employees from leave in genuine emergencies, but this is rare and your unused days remain yours. Keep written records of any such changes.
The Bottom Line
UAE annual leave rules are straightforward: 30 calendar days a year, 2 days a month in your first year after probation, paid at full wage, and cashed out if unused when you leave. The disputes are rarely about the law itself — they are about timing and records. Plan early, get approvals in writing, and track your own balance.
Last Updated: 8 October 2026
About the author: Zaviyar Sultan is a UAE-focused writer at Paxi, covering driving, visas, banking, insurance and everyday UAE life. His guides are researched from official UAE government and regulator sources and updated regularly.
Paxi is an independent informational website, not affiliated with the UAE government or any agency mentioned; content is general information only, not legal, immigration or financial advice; verify critical details with official sources before acting.