Can annual leave be carried forward to the next year in the UAE?
Up to half of it. Article 19 of Cabinet Resolution No. 1 of 2022 lets a worker carry forward no more than half of the annual leave, or agree with the employer to a cash allowance instead, at the wage received when the leave fell due. At the end of service, any balance is paid on the basic wage.
On this page
Carry forward or cash
Carrying forward is limited to half. For the rest, the worker takes the leave or agrees a cash allowance with the employer. The cash allowance during employment uses the wage at the time the leave was due; the payment at the end of service uses the basic wage.
Why ledgers matter
A carried balance needs to show which year each day came from, so the employer can apply the half limit and settle correctly at the end of service. A single running total cannot show that.
How SupaJack Construct records it
Annual leave is a ledger of dated entries, including accrual, leave taken, carry-forward, expiry and encashment. The balance is the sum of the entries, so each carried day can be traced to the year it was earned.
Related tools and guides
See the UAE labour law guide for contractors, the final settlement calculator, the gratuity calculator, the annual leave calculator, the unpaid leave deduction calculator, payroll and WPS in SupaJack Construct, time and attendance and the meaning of basic salary.
Worked example
A site engineer earns 30 days for 2026 and takes 10. Of the 20 left, he can carry forward up to 15, half the 30-day entitlement. The other five he takes before year end or receives as cash by agreement.
Questions people ask
Is half of the entitlement or of the balance?
Article 19 refers to half of the annual leave.
Can unused leave be paid in cash?
Yes, by agreement during employment, and by law at the end of service.
What wage applies at the end of service?
The basic wage.